Amitabh Dubey

Director of India Research
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New risks in power

Overview

Reform efforts in India’s troubled power sector have been focused on increasing the revenues of electricity distribution utilities and thereby improving the investment environment. But high world coal prices pose a new risk since they raise fuel costs in a political culture that resists price increases, particularly in an inflationary cycle. Consequently they could hurt utilities’ financial viability and damage the power reform agenda.

The government has avoided a crisis by...

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