Recoveries From Stressed Operational Thermal Plants To Improve

Mumbai: For asset reconstruction companies (ARCs), the cumulative recovery rate for stressed operational thermal power plants (TPPs) is set to improve 700-900 basis points (bps) on-year to 83-85 per cent next fiscal due to robust growth in power consumption, a report said on Monday.

"Increase in the recovery will be driven by higher power demand on the back of adequate coal availability, timely payment by distribution companies (discoms) and expected healthy merchant power prices," CRISIL Ratings said in a report.

These industry tailwinds are not only supporting faster resolutions but may also aid the resolution of about 5 GW of stressed TPPs over the next 2 fiscals, it said.