India Ratings believes that fuel price risk is likely to be manageable with the formulation of a new standard bidding document

Indian government's policy measures are helping the power sector as green shoots have started to emerge, believes India Ratings. These policies are directed to solve the fuel risk and poor financial health of state power utilities in 2012-13 and 2013-14.

One of the pet projects of Mulayam Singh as chief minister of Uttar Pradesh, five years earlier, was the 7,480-Mw Dadri power project. It was also Reliance Power promoter Anil Ambani's dream project, but for some time now, the project has fallen off the radar of the developer.

Dadri got its initial blessing from Singh in 2003. Later, it ran into a number of troubles. The most significant one being fuel supply. The size of the project was expanded to 3,500 Mw on paper, though. Not much could move on the ground, as gas was supposed to be supplied from the Krishna-Godavari block operated by Mukesh Ambani's Reliance Industries.