Low capacity utilisation overhang of energy sector: Assocham-Crisil study

The energy sector is staring at the prospect of low capacity utilisation in power generation as plant load factor is estimated to stay soft at around 62 per cent until 2018-19, says an Assocham-Crisil joint study.

The joint study took note that India had made considerable progress in the power sector in the past three years that resulted in improved access to electricity, better financial health of discoms and promotion of renewable energy generation, Assocham said in a statement.

However, operational performance of distribution companies (discoms) remains a concern, the joint study titled 'Insolvency and Bankruptcy Code: Protecting stakeholders, improving ease of doing business' stated.

The study made a specific mention of reforms during the past three years, saying a majority of them are in initial and middle stages of implementation.

"While steps taken by the Modi government do not create an immediate and strong upside, they improve India's ability to achieve faster and sustainable growth over medium term," it said.

Reforms under health, education and technological readiness are at the initial stage of implementation while those concerning macro-economic environment, infrastructure and financial market development are in the middle. Goods market efficiency and institutions are in the advanced stage.