The Central Electricity Regulatory Commission (CERC’s) draft tariff regulations for five years between FY2019-2024 will be favourable for power generators, as the regulator has maintained the status quo on most of the parameters, says India Ratings (Ind-Ra).
According to the ratings agency, CERC’s move to tighten the working capital norms by lowering the normative inventory and receivable period and allowing change in the rate of interest on working capital, will be beneficial to the generators.
In the new draft, CERC has lowered the normative inventory and receivable period by 10 days and 15 days, respectively, and allowed change in the rate of interest on working capital to one year MCLR + 350 bp as against the earlier guideline of SBI base rate + 350 bp. Read More
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