The power sector has benefitted from major policy changes that were announced last week. The policy changes can not only address pending investor concerns, but can also fast-track the recovery of the industry process. However, all of this depends on the policies being implemented well.
The Central Electricity Regulatory Commission (CERC) has adopted a conciliatory tone on tariffs, allowing compensation for the loss of coal heating value during storage and retained the current regulated return on equity. The regulations remove a key overhang for NTPC Ltd, which owns the highest number of regulated power plants.
