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Is the E-Auction of Coal Really Going to Revive the Stressed Power Companies?

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The government will create two dedicated e-auction windows for coal, targeted at the stressed power companies without blocks or linkages till the new framework is out. 

Source: ET

SNP Insight

This may provide temporary relief to power companies but the cost linked with this mode can be a worrying factor for the power companies. The increase in floor price of coal in e-auction mode may increase the power tariff. With present decrease in power demand in distribution side the power companies may find it tough to sell the costly power. This may affect the operating efficiency and financial ability of these stressed power companies.

Source: SNP Infra Research