The private sector brings with it the benefit of private funding of the projects and efficiency of operations. Â´Public-Private PartnershipÂ´ (PPP) has been a relatively flourishing model for infrastructure development in India.
The revised tariff norms by the Central Electricity Regulatory Commission (CERC) will have a negative impact on the margins of state-owned utilities such as NTPC, Power Grid and NHPC according to Standard and PoorÂ´s Ratings Services (S and P). CERC, in its final guidelines for tariff fixation, has shifted the incentive structure to plant load factor (PLF) from plant availability factor (PAF) for the period FY14-FY19.
The Central Electricity Regulatory Commission (CERC) proposed to restructure the coal price index followed in the country for making payments by power producers to coal imports. Currently, for payments for imported coal, CERC uses a composite index that considers Australian and South African coal.