Adani Power Ltd on Monday posted its fifth successive quarterly loss for the three months ended December in a reflection of the crisis in the power sector, hit by a shortage of domestic coal and forced to rely on imports to fuel their power plants.
Profits were hit by the high cost of imported coal and legal changes in “coal-exporting countriesâ€Â, said Prabal Banerji, chief financial officer. “Coal linkage and regular supply from the linkage of Coal India Ltd.
Although Adani group chairman, Mr Gautam Adani feels that future outlook for domestic power sector seems to be good, specially after Coal India has assured of increase in production. Company has also sought for revision in power prices.
“The domestic outlook for the power sector seems set to improve on the back of recent policy measures addressed by the government,†said Gautam Adani, chairman.
This includes the directive by the Prime Minister’s Office to Coal India to sign FSAs (fuel supply agreements) and “to work on coal-pooling mechanism, state electricity board debt restructuring approval by cabinet, rail links for coal evacuation, etc.,†he said. “We see these steps as clear indication of the importance attached to this vital sector and boost for more investment under the 12th five year plan (FY2012-17).â€Â
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