Business: For asset reconstruction companies (ARCs), the overall recovery rate of idle thermal power plants (TPPs) is expected to increase by 700-900 basis points (bps) in the next fiscal year due to a sharp rise in power consumption, the report said, adding that the recovery rate improved to 83-85 per cent on Monday. “Recovery will be supported by rising power demand due to adequate supply of coal, timely payments by distribution companies (discoms) and expected healthy power trading prices,” Crisil Ratings said in a report. It said these favourable industry conditions will not only facilitate faster resolution of issues but may also help resolve distressed thermal power plants of about 5 GW over the next two fiscal years.
Recovery from stressed operating thermal power plants expected to improve
