Coal shortage likely to hurt India power sector: Fitch

New Delhi: Persisting coal supply issues are likely to hurt the country`s power sector as well as weaken investor sentiment towards new power projects, according to rating agency Fitch.

The domestic power sector, which expects to have over 80,000 MW capacity addition in the next five years, is heavily dependent on coal-based thermal power projects.

"India`s power generation companies could be adversely affected by coal shortages, which are likely to persist over the short-to-medium term," Fitch Ratings said today.

Coal-based projects accounted for 54 per cent of power capacity at the end of April and 66 per cent of total electricity generated in the last fiscal.

"Amid uncertainties over coal supply, the investor sentiment seems to be weak, especially towards new power projects," Salil Garg, who is a Director in Fitch`s energy and utilities team, told PTI.