Credit Ratings of Power Distribution Utilities in Northern Region of India | Asian Journal of Econom

In this study, a discussion has been made on the credit ratings of power distribution utilities of the northern region of India. In July 2012 for evaluating the performance of State Power Distribution utilities on a range of parameters covering operational, financial, regulatory and reform parameters the Ministry of Power, India had designed an Integrated Rating Methodology. The credit quality assessed by the Investment Information and Credit Rating Agency of India Limited (ICRA) and Credit Analysis and Research Limited, India (CARE) summed up that a distribution utility is dependent upon several factors, including the availability of regulatory framework allowing ‘cost-plus’ based tariff, timeliness and adequacy of subsidy support from the state government, and the ability to improve the operating efficiency levels and maintaining the cost structure in line with regulatory targets.

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