International ratings agency Moody’s has upgraded the long-term outlook for India’s power sector from negative to stable in its latest report.
The report ‘Power Sector – Asia Pacific: 2017 Outlook – Rising Industry Challenges Are Manageable, Outlook Stable’ released late last week states that the change in rating follows an upsurge in domestic coal production and a financial restructure of utilities companies.
“We have changed the outlook for the Indian power sector to stable from negative, because the increased domestic production of coal will ease constraints on fuel supply,” the agency said in its report.
The news of the improved outlook came as Coal India, the world’s largest producer by output announced it had increased production by 5.3 per cent in November
Production is likely to continue to increase as India seeks to meet its rapidly growing energy demands.
India’s Oil Minister told a Petrotech conference in New Delhi on 4 December that energy consumption will increase by 91 per cent over the next 25 years alone.