Supplies in day ahead market are far exceeding demand
NTPC predominantly sources its fuel from the domestic market. And unlike its private counterparts, NTPC does not suffer from untied power capacities
Barring the short-term reasons like imbalance in demand-supply, the underlying real demand is improving, which is far more important.
On improvement in power demand, Anil Sardana, MD & CEO of Tata Power says, there is traction as India has lot of pent-up demand and schemes like UDAY will boost consumption.
Shankar K of Edelweiss Securities says he was expecting the bidding to be aggressive for the power sector especially since there is a huge mismatch between demand and supply.
Speaking to CNBC-TV18 from the boardroom, Sushil Maroo, director -- finance of JSPL says that he expects merchant power rate to stabilise at Rs 4-4.25 per unit going ahead. "But it won't benefit us much and is a temporary phenomenon," he says.
Isaac George, CFO of the Hyderabad based infrastructure firm, in an interview on CNBC-TV18 said the power segment was a disappointment which impacted their profits.