The sector added ~70,000 Crore of debt in FY23, majorly to fund CAPEX investments and liquidation of payables

The sectoral debt increased 11 percent from FY22 to reach INR 6.88 lakh Crore in FY23. The intensity of debt requirement has come down, as evident from Debt as % of Revenue declining from 82% in FY21 to 76% in FY22 to 73% in FY23. Debt Service Coverage Ratio (DSCR) remained positive but declined from 0.44 in FY22 to 0.26 in FY23. With surmounting debt and financing costs, it becomes critically important to accelerate the transition towards financial viability in the sector.