“Govt may cap tariff rates for merchant power”- Reports

The entire power sector has been under pressure mainly on the back of a media report that came out yesterday. The reports suggested that the Ministry of Power is proposing to cap tariff sold from power projects, which have captive coal blocks or assured domestic coal linkages.

This might be another move towards aiding distribution companies (DISCOMs), which will also benefit consumers. As per this media report, the fuel pass-through will be dependent on actual cost. The independent power producers, not adhering to this move, will suffer when it comes to getting additional linkages for the future.


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