India Ratings and Research agency has maintained a negative outlook on the infrastructure sector for FY-18, with varied outlooks on individual sectors.
Toll roads, thermal and wind power continued to pull the overall sector outlook down with the ratings agency predicting a further 2 per cent fall in plant load factor of thermal power capacity. The agency also sees an absence of capacity addition in wind power going forward, due to the grid parity in pricing being achieved by the solar sector and the surplus power situation in major states.
The ratings agency had earlier released a special report with its outlook on infrastructure and project finance for the next fiscal. Among the individual sectors, the negative rating was continued for the third consecutive year for toll roads and thermal power, while the outlook for wind energy turned negative from a stable rating in the last two years. The ratings agency has changed its outlook for airports to ‘positive’ from ‘stable’ while maintaining a stable outlook for seaports for the third consecutive year.