As coal and gas supply crisis deepens for the power industry, other companies have no choice than to go running to merchant corporates to meet their demand for power.
This translates to additional profits for the merchants as they sell power not only at a premium, but the rates are also bound to go up further. Speaking to CNBC-TV18 from the boardroom, Sushil Maroo, director-- finance of Jindal Steel and Power (JSPL) says that he expects merchant power rate to stabilise at Rs 4-4.25 per unit going ahead. Average price of power has been at Rs 3.7 per unit over the past six months. He however says that this hike in power tariff by merchant organizations is going to be a temporary phenomenon.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
