Mumbai, Sept. 23 -- Thermal power companies-long facing a negative outlook because of India's clean energy push-have seen their credit ratings improve in recent months, on the back of surging demand for short-term contracts for firm power, or electricity guaranteed to be available at all times.

As of 2024-25, 79% of the thermal power companies covered by Care Ratings had a credit rating of A- or higher, up from 67% in 2021-22.

Adani Power Ltd, Jindal Power Ltd, NTPC Ltd, Sasan Power Ltd, Prayagraj Power Generation Co. Ltd and Tata Power Co. Ltd are among the companies that received favourable rating upgrades from multiple agencies in the past 12 months.

The rating agency attributed this improvement to better pricing from the sale of po...