In the wake of the upcoming general elections to be held in April and May, states have started making arrangements to tie up power supply agreements on a short-term basis for these two months at prices much higher than they normally pay.
While the average all-India price at which states procured non-renewable power in FY18 was Rs 3.53/unit, the price range for these bilateral power deals range between Rs 4.45/unit and Rs 8.5/unit.
In the auctions for such power supply agreements, states such as Maharashtra, Bihar, Chhattisgarh and Haryana seek to tie up a cumulative 5,500 MW capacity for the election months to avoid power cuts. West Bengal has also requisitioned for 500 MW in April under this route, at a price range of Rs 5.10/unit-Rs 7.20/unit.
