Thermal power ratings rise as short-term demand surges

Many thermal power firms have utilized higher income to lessen debt, and help their ratings

- Nehal Chaliawala

Thermal power companies—long facing a negative outlook because of India's clean energy push—have seen their credit ratings improve in recent months, on the back of surging demand for short-term contracts for firm power, or electricity guaranteed to be available at all times.

As of 2024-25, 79% of the thermal power companies covered by Care Ratings had a credit rating of Aor higher, up from 67% in 2021-22.

Adani Power Ltd, Jindal Power Ltd, NTPC Ltd, Sasan Power Ltd, Prayagraj Power Generation Co. Ltd and Tata Power Co. Ltd are among the companies that received favourable rating upgrades from multiple agencies in the past 12 months.