Ind-Ra expects utilities to increase the share of short-term purchases in the next three years gradually.
GVK Power and Infra is keen to address fuel shortage concerns which may hurt financials in FY14.
Salil Garg of India Ratings said, “Only on those power generators or those new Independent Power Producers (IPPs) who are not operating on the cost plus model and those who have either bid on a fixed price basis and they are unable to pass through the increased cost of the imported coal back to the consumers, will be impacted by this decision.â€
Speaking to CNBC-TV18 about its differences with Coal India, NTPC CMD Arup Roy Choudhury said the company is not sure if the coal giant has the ability to meet the power sector's growing demand.
The government has sought by April 10 the status of the power purchase agreements from 20 companies, including NTPC, NMDC, NHPC and Neyveli Lignite, that have applied for coal mines to be alloted to PSUs.
The Comptroller and Auditor General of India (CAG) has indicted the Gujarat government and state Public Sector Undertakings for extending undue benefits to major industrial houses causing a loss of Rs 750 crore to the state exchequer.
Deepak Amitabh, CMD, PTC India and PTC India Financial Services said they expect fund flow from Uttar Pradesh (UP) and Tamil Nadu (TN) state electricty boards (SEBs) only post their restructuring.