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<p><span style="font-size:9.0pt">Power Sector is grappling with weak financial health of Discoms and their incapability to honour Power Purchase contracts. Draft Policy provides loose ends to central sector, exempting it from participation in competitive bidding procedures. This may inhibit objective of Tariff Policy to make power available at competitive rates and ensuring financial viability of the sector.</span></p> <p><span style="font-size:9pt">Recent auctions have shown that price arrived through competitive bidding is much lower than cost-plus tariff. Determined relaxation given to Central Sector may have repercussion on private power plants &amp; may have to grapple with stress.</span></p> <p><span style="font-size:9pt">Such waiver to Central may make force Discoms to suffer with fixed cost PPA at non-competitive market rate in long-term and will saddle discoms impacting their financial health.</span></p> <p>&nbsp;</p>