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Rates in power exchange not true indicators of power demand-supply situation: CEA

Power stocks have been buzzing off late as for thermal power plants, the open market electricity tariff in the country has reached a 5-year high. Also for gas-based stranded power pants, there was news of re-negotiation of tariffs in the Australian deal, Gorgon. Are all these positives enough to conclude a recovery in the power sector? In an interview to CNBC-TV18, RK Verma, Chairman of the Central Electricity Authority discussed about the same.The rates at the power exchange are not an indicator of the power supply situation because the trading that takes place at the power exchange is very small, just 3-4 percent of the total capacity, he said.Reduction in hydro generation because of less inflows in rivers but we have enough capacity, we .....

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