Fixed charge discount seen cutting NTPC profits by 9% in FY21

Reducing fixed costs of power plants to salvage stressed electricity distribution companies (discoms) from the current crisis stemming from the lockdown to contain the coronavirus outbreak can reduce NTPC’s FY21 profit by about 9%, brokerage firm Jefferies noted.

In a meeting recently held between Union power secretary Sanjiv Nandan Sahai and state power department officials, the discoms sought reliefs from various fronts, including discount on fixed charges payable to generators when power is not being procured from plants.