Supply challenges unlikely in fiscal 2024, given the increase in production.
Expect imported coal blending to go decline to 6% and lower, with improvement in domestic supply
Merchant sales and prices
Merchant prices have softened in the past 3-4 months owing to cooler temperatures in the north. Prices unlikely to peak during the rest of this fiscal.
Gap in peak power demand may drive merchant prices.
On discoms
Tariff hikes are important for the sustenance of the sector. The central government has taken various measures to improve discom health.
Discoms may float medium-term PPAs to overcome the vagaries of the spot market. This will be an opportunity for some of the open thermal capacities.
Analytica