It will be interesting to see if state governments go beyond scoring political points and implement UDAY in spirit
According to an analyst with a leading brokerage house, the move is a big positive for the company
In a written reply to the Lok Sabha, Power Minister Piyush Goyal said while the RBI does not maintain details of loans received by the approved power projects, however, bank-wise information on loans outstanding to power sector was available.
Of the 92 mines to be allotted and auctioned in the first lot, 57 would be given to the power sector, and the remaining would be for industries like steel and cement.
Shares of JSW Energy were trading 12.1 percent higher in afternoon trade, while Jaiprakash Power Ventures was up 3 percent after the former agreed to acquire 100 percent stake in Himachal Baspa Power Company from Jaiprakash Power Ventures for a base enterprise value of approximately Rs 9,700 crore.
The government is now planning to allocate coal blocks through auction by February next.<br />
The move comes against the backdrop of the Supreme Court last month quashing allocation of 214 coal blocks to various companies since 1993.
SBI has only around Rs 4,000 crore at risk if all the 218 blocks are cancelled
The government told the court in an affidavit yesterday that it had no objection to the cancellation of the allocations
Prime Minister Narendra Modi today met Power and Coal Minister Piyush Goyal to discuss bottlenecks in the power sector and also deliberated on the fallout of the apex court's view on coal block allocation.
Congress leader Shankersinh Vaghela accused the BJP-led Gujarat government of indulging in "irregularities to the tune of Rs 6,000 crore in power sector".
Last week, power secretary Pradeep Kumar Sinha said that the government is confident of adding 1,18,000 MW capacity by 2017.
The risk of fuel prices is likely to become manageable for utilities after the government allowed them to pass on higher costs of imported coal to customers, India Ratings said.
Country's largest private power producer Tata Power has said that electricity tariffs are "artificially kept low" while acknowledging that the sector is facing challenges across the value chain
Singh's government has attempted to fix the financial health of distribution companies with a $32 billion federal bailout package that came with strict riders. But, as a private player, BRPL is not eligible for a slice of the rescue package.
The order which allows Adani to increase power tariffs to consumers for its project in Gujarat would set a legal precedent for other companies facing issues of fuel shortage and increased costs.
India's power sector regulator CERC today suggested establishing a South Asian power trading market to help ease acute electricity shortages facing many nations in the region.