Rising fuel cost short-to-medium term constraint: CESC Chairman Sanjiv Goenka

The rapidly rising cost of fuel, owing to the Russia-Ukraine crisis and demand-supply factors, is a short-to medium-term constraint, CESC NSE 0.49 % Chairman Sanjiv Goenka has said. Goenka said in such a scenario, it is vital that power producers and distributors are able to expeditiously pass on purely the element of higher fuel cost through tariffs.

“Unfortunately, while this forms a part of each power supply contract, we still see reluctance of state governments and regulators to give their assent in a timely manner.