borrowings for many players, impacting their credit profiles. Consolidation of operations leading to improved credit profile will be a positive for the sector.
Ind-Ra warned that the continuous debt-led capex, coupled with delays in commissioning of facilities and stressed profitability due to low occupancy could affect the outlook negatively.
Based on the World Health Organisation's estimates, India has 6.5 doctors per 10,000 people against the world median of 14.2. To achieve the government of India's goal of 20 beds per 10,000 people by 2020, Ind-Ra estimates 1.5 million beds will have to be added.
Based on capex announcements by the industry players, FY15 would be the year of peak capacity additions since FY11.