Source: ET Infra
India Ratings and Research (Ind-Ra) expects stable operating performance for most infrastructure projects in the current financial year. The rating agency maintains a stable outlook on the infrastructure sector, including the transport segment – which signifies low chances of rating changes for the sector in the near to medium term.
The rating agency assigned a positive outlook on the airport segment which means there are high chances of rating upgrades in the near to medium term.
Ind-Ra stated that the stable outlook on the infrastructure sector factors in the likelihood of a stable operating performance for most projects, long-term revenue visibility under concession agreements and power purchase pacts and expected improved cargo and traffic volumes.
On the power sector, the rating agency said it expects total capacity installed to reach about 476 GW in FY25 against 440 GW as of March 2024.
In a virtual press meet, Bharat Kumar Reddy, Associate Director at India Ratings and Research, said, “On the energy front, we have seen peak demand growing by almost 13 per cent during the last fiscal. However, the deficit has reduced to 1.5 per cent compared to 4 per cent which we have seen in FY23 that is largely because of better coal supply.” The overall peak demand was 243 GW in FY24 and the total capacity installed was about 440 GW as of March 2024.