Changing technology is slashing the cost of generating solar power, but it is still unclear if these projects are feasible at such low prices

The model state electricity distribution management responsibility Bill looks good on paper but lacks in teeth

Pictorially, the idea of a model State Electricity Distribution Management Bill, 2013 can be described as a bulb being lit up on the head of the power ministry, except that the bulb itself is a fused one. In drafting the bill the ministry has repackaged a number of older norms, added a few and has presented it as a new Bill.

New power producers are unlikely to agree to the cost-plus model as their costs will be higher

Coal India Ltd’s (CIL) board approving the modified Fuel Supply Agreements (FSAs) does not mean power plants will start getting assured supplies of coal to generate power, as new producers might not agree to the pricing under the FSA. The board approved payment of penalties in the range of 1.5 per cent to 40 per cent in case of a shortfall below 80 per cent. Thus, only if the company is not able to meet its commitment of supplies will it pay higher penalties.