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Stringent Norms of Government puts Discoms to match Demand with Supplies

<p><span style="font-size:10.0pt">Government&rsquo;s plan to amend Electricity Act for imposition of more stringent norms on Discoms to match projected demand with assured PPA supplies is a positive move to revamp declining PLF of country. Quality of Power supply across states is also certain to improve in lieu of anticipated blueprint. Consumers of Discoms may also feel a sigh of relief, as discoms are reluctant to enter into PPA due to their weak financial condition. Discom prefer to buy power from short term market which is uncertain, any rise in price in spot market has to be&nbsp;</span><span style="font-size:10pt">borne by consumers.</span></p> <p><span style="font-size:10pt">Other side is darker for Exchanges, they may foresee a decline in Trade Volumes across the platform.</span></p>