Power sector gets regulatory relief, deft execution now need of the hour

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.