Lower merchant power rates and higher coal prices would ensure sustained pressure on profitability of non-integrated companies. The performance of Indian companies with large exposure to merchant power sales could remain under pressure, with a likely decline in earnings as a result of lower merchant power tariffs and rising coal prices. This especially holds true for non-integrated players. Thermal coal—a key input for power generation—has become costly in the global markets in the recent months. Additionally, India’s largest coal producer, Coal India, also increased the price of coal by 30 per cent for non-regulated (spot sales) power generation companies. Industry estimates suggest that demand from China and India could drive coal prices towards $150 a tonne. Given the nuclear crisis in Japan, preference towards coal-based power plants would put further pressure on prices.
FlashNews:
Genesys International Q1 Profit Surges 32% on Strong Mapping Demand
Asia-Pacific to Drive 33% of Global Regional Jet Demand by 2045: Embraer
India Achieves 100 GW Solar PV Milestone with ALMM-Driven Expansion
Air India Accelerates $400 Million Fleet Retrofit Programme Across Widebody and Narrowbody Aircraft
ONGC Q1 FY2026 Net Profit Rises 18.2% to ₹115.5 Billion on Strong Gas Realisations and Offshore Gains
Centre Defends Ethanol Blending Programme Amid Mileage Concerns; Highlights $16.5 Billion Forex Savings
Suzlon Energy Reports 62% Surge in EBITDA to ₹5.99 Billion in Q1 FY2026
Inox Green Secures Long-Term O&M Deal for 182 MW Wind Projects
Adani Group Expands MRO Capabilities with Indamer Technics Acquisition
PixxelSpace-Led Consortium to Build India’s First Indigenous Commercial EO Satellite Constellation
India’s Maritime Framework Gets Legislative Boost with Coastal Shipping Bill Passage
IRB Infra and InvIT Projects Post 10% Growth in July 2025 Toll Collections
India Modernises Maritime Laws with Merchant Shipping and Sea Cargo Bills Passed by Parliament
India Sets Global Record with $0.64/kg Green Ammonia Price Under Hydrogen Mission
IndiGo Starts Construction on One of India’s Largest MROs in Bengaluru
SDHI to Manufacture Varex Cargo Inspection Systems in India
Mumbai-Ahmedabad Bullet Train: Sabarmati Bridge Rises to 36 Metres
Tata Power Profit Rises 6% in Q1 FY2026 on Strong Renewable and Distribution Gains
Suzlon Wins 381 MW Order for Zelestra’s First FDRE Wind Project in India
Home » Merchant power cos under pressure
Merchant power cos under pressure
Power & New and Renewable Energy
April 1, 2011April 1, 2011

Leave a Reply
You must be logged in to post a comment.