The government has removed restrictive riders which discouraged neighbouring countries to buy power from India’s spot power markets. Also, it barred plants with Coal India fuel linkage or captive mines from selling power outside India, a move that could help imported coal-based units in the private sector to have a larger pie of the markets in neighbouring countries.
Industry representatives FE spoke to said the 2016 guidelines allowed cross border trade only through the ‘term ahead’ market and did not allow trading in the more attractive ‘day-ahead’ market. The latest guidelines for cross-border electricity trade issued by the power ministry, reviewed by FE, have removed such conditions.
However, foreign entities would be required to participate in power exchanges only through Indian power trading entities. Read more
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