Coal shortage to affect PLF of power producers
Power producers are in for tough times this year, with plant load factors (PLF) of several producers falling by as much as 20 per cent due to acute coal shortage. This might spill over into the new financial year too, since there just isn't enough coal available to feed India's steel and power production facilities. Even as India's new power producers were coming to terms with coal shortages in India, the floods and subsequent cyclone in Australia have come as a body-blow to cement, power and steel producers. Imported coal prices are up 44 per cent year-on-year, impacting profitability even further.
According to analyst estimates, Indian coal availability is expected to rise at a compound annual growth rate (CAGR) of only 4.2 per cent over the financial year 2010-14, which is insufficient to meet the power capacity growth of 10.4 per cent.