NTPC, Tata Power fall on draft guidelines for sector

Shares of electric utilities drop after the power regulator tightened certain rules for tariffs

RELATED ARTICLES

and operations for the sector in its draft 2014-19 guidelines.

The guidelines were posted on the Central Electricity Regulatory Commission (CERC) website late on Monday.

NTPC slumps 11 percent, Power Grid Corp of India falls 3.4 percent, while Tata Power declines 1.5 percent.

Analysts say the guidelines tightened some operational parameters, reducing the use of financial incentives for achieving transmission and generation targets.

The guidelines also propose that some of the savings from fuel costs be partially passed on to consumers.

Analysts warn the proposals could hit returns for the companies. The rules need to be finalised by March.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • 49 per cent FDI in defence should pave the way for modernisation

    There is one industrial sector in India that has been kept out of the purview of the normal cycle of investment and production — defence.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Welfare must be humanitarian not political

We are a very political people. We politicise and corrupt ...

Purnendu Ghosh

How to distinguish a need from a want?

The day when the annual budget is announced is one ...

Shona Adhikari

Decades apart, yet a common ground in fine art

Today’s column is about two artists born many decades apart, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture