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PSU power producers cut back capex due to lack of demand
NEW DELHI . While lack of power generation was a big issue earlier, lack of demand – arguably different from excess supply -- is now a serious problem. And that could be the real reason behind public sector power producers scaling back their expansion plans in 2017-18.
An evaluation of the capital expenditure plans of six government-owned power generators indicates a 2.4 percent average cut back from their 2016-17 revised estimate to Rs 36,880.92 crore.
These companies are NTPC , NHPC , SJVN , Tehri Hydro Development Corp, Damodar Valley Corp and North Eastern Electric Power Corp though not all are cutting back on their expenditure. This is the first time in several years that the combined capital expenditure of these six public sector power producers will see a downward revision from their previous year’s spend.
Comparing from the original targeted figure for 2016-17, this is a 7.7 percent fall. The companies had planned to spend Rs 40,756.70 crore in 2016-17 but will now spend Rs. 38,532.04 crore. Moneycontrol
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