Thermal power units with electricity sale agreements but no fuel supply pact to support them will have to offer a minimum discount of 7 paise per unit on existing tariffs to get Coal India’s notified prices for 25 years, the government has recently decided.
Some industry executives say the discount requirement is too high, being seven times of what was required in a similar auction in 2017. This will hurt margins, they said. Analysts said the government had to do a balancing act.
