Thermal power plants in the country operated at an average peak load factor (PLF) of 69.95 percent, which is a nine-year low in 2012-13 owing to insufficient availability of coal.
Given the stagnation in the production of coal and natural gas, industry observers raise doubt as to how
the raw material needs of our future power projects would be met. In 2013-14, India’s power generation capacity is expected to rise 9 percent.
Coal India (CIL) has been unable to ramp up output in the last few years because of various reasons. Besides, a decline in gas production from Reliance’s KG basin has resulted in many gas-based power plants operating at less than half their capacity.
Suboptimal utilisation of capacity affected the debt servicing ability of power producers like GMR Infrastructure, GVK Power & Infra, Lanco Infratech.