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Light at the end of tunnel
The Power Sector has the lion´s share of 20 per cent in the industrial debt of Rs.26 trillion (lakh crore) in the country as of August 2016, followed by metals and metal products (16 per cent), roads (7 per cent) and textiles (7 per cent), and these four sectors account for about 50 per cent of the gross credit deployed in industries
Power Sector, IFC, CAGR, ICRA, CRISIL, Discoms, FRP, UDAY, Aggregate Technical, Commercial, Rachna Jain, Corporate Ratings, Fitch Ratings, Anjan Ghosh, ICRA
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Debt restructuring may not turn around discoms sustainably
Financial restructuring under UDAY will provide some immediate breathing space. To start with, the participating states will take over 75 per cent of discoms´ debt outstanding at end-September 2015 by FY17. The rest of the debt will be re-priced or issued as state-guaranteed discom bonds at coupon rates about 3 per cent less than the average existing interest rate (around 12 per cent).
UDAY, Ms. Rachna Jain, Saswata Guha, Discoms, SEB, AT And C, PPA, Electricity, Gencos, Bharatiya Janata Party, Power Generation, Transmission
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Falling PLF
India´s power generators continue to face low and declining capacity utilisation, mainly because financially stressed power-distribution companies are unable to purchase power. This underscores the importance of successfully addressing the power distributors´ financial health.
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