The ratings of solar power projects are likely to remain stable next financial year (2020-21). However, there could be some slippages in construction timelines due to delays in the import of modules from China.
The outlook for the wind energy sector looks negative on the back of uneven plant load factor performance, weak counterparties and a few weak operations and maintenance contractors.
Lok Sabha gave its nod to the Mines and Mineral Laws (Amendment) Bill. The Bill proposes to remove end-use restrictions for participating in coal mine auctions and will open up the coal sector fully for commercial mining for all domestic and global companies. It would also pave the way for auctioning of iron ore mining leases which expire this month.
India Ratings and Research has maintained a stable outlook on the cement sector for FY21. The agency expects cement demand growth to recover to around 5% during the year, on the back of a modest pick-up in infrastructure spending and housing segment with some recovery witnessed during November-December 2019.