Faced with clear stranded asset risk and difficulty in accessing capital, the country's thermal power sector is projected to witness just 3,000 megawatt (Mw) net capacity addition annually in this financial year FY19 and through FY20.

The forecast by US-based Institute for Energy Economics & Financial Analysis (IEEFA) factors in 7,000 Mw of new plants commissioned and 4,000 Mw in end of life closures.

According to the IEEFA report, the country's thermal power capacity fell 1,100 Mw in the April-October period of the current financial year. The addition of 600 MW at the Mahan Super Thermal Power Project in Madhya Pradesh (10 years in the planning) was more than offset by the closure of 1,799 Mw of capacity, principally at two other plants- 705 Mw at the Badarpur Thermal Power Station in NCT of Delhi, and 420 Mw at the Ropar Coal Power Station in Punjab.