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State Involvement in Allocating Coal may Catalyze the Distribution Reform

News:

In a radical change from the policy of allocating coal assets to private power companies through reverse-auction, the government is considering steps to use the mines as well as supplies from Coal India as a lucrative incentive for states to adopt distribution reforms.
Source: ET

SNP Insight:

Freedom of state to select companies on the basis of lowest tariff would certainly benefit in two ways i.e. distribution companies with cheaper power and power producer with PPA. This would also make distribution companies more accountable and making it more commercial.
Source: SNP Infra Research