Two leading brokerages, Credit Suisse and CLSA said they expect power shortages in the next four years and hence the sector may see fresh capex after a couple of years. This, even as at least 40,000 megawatts of private power assets are either languishing as defaulters in the bankruptcy courts or are seeing less than 50 percent capacity utilization.
In October, for the first time in three years, power demand in the country grew in double digits; it grew at 10 percent nationally. Merchant power rates rose by 46 percent in the month of October. Yet, none of the private power companies saw any increase in their plant load factor (PLF) that is in their capacity utilization.
Ajay Kumar Bhalla, Secretary of Ministry of Power, Pramod Deo, Former Chairman of CERC, and Neelkanth Mishra, MD and India Equity Strategist at Credit Suisse discussed whether the sector really needs more investment when the private power companies do not see any capacity utilization worth the name and why is the sector so loaded against the new private players.