The Government of India has approved the launch of KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, to promote the use of solar powered agriculture pumps by farmers and installation of small renewable power plants (500 KW to 2 MW) by farmers/cooperatives/panchayats on their lands, with a funding support of Rs 344.22 billion.
Amidst the chaos seen in the power sector, with 22,000 MW thermal power projects lying idle for the need of coal or gas and lenders taking power generating assets to National Company Law Tribunal (NCLT) to recover dues, the transmission sector- with longer life cycle and lower risks- has exhibited the only ray of hope for investors and developers alike.
Even as demand for cement has picked up from Q3 FY2018 and the trend is expected to continue in Q4 FY2018, with the growth expected at around 5% in FY2018 and FY2019, expectation of higher petcoke, coal and diesel prices are likely to put pressure on the profitability margins and debt metrics of the cement companies in the coming quarters.
The recent notification of bidding guidelines by the Government of India for the award of wind power projects is a positive development for the sector. The guidelines address some of the key concerns for the sector pertaining to off-takerÂ’s credit profile, grid curtailment and termination payments.