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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The current brinkmanship between financially stretched states and a fiscally hawkish Centre has turned the idea of market federalism into a game of my way or the highway.
Editor's note: A few weeks ago, 12 states were barred from trading on India’s short-term electricity markets as a penalty for non-payment of dues to power generation companies. The defaulting states’ power distribution companies cumulatively owed Rs 5,000 crore, which had been pending for a while. The dues were paid, the bar was lifted and life seemingly moved on. But the stakes have been raised in a sector where financial brinkmanship between financially stretched states and a fiscally hawkish Centre has been a perennial struggle. The Centre has made it amply clear, through a series of actions, that it plans to address the broader financial problems of India’s power sector with a certain amount of heavy-handedness. On 3 June, it notified the Electricity (Late Payment Surcharge) Rules, 2022, which gave the Ministry of Power, through Power System Operation Corp., this specific power to disconnect states from the national markets. Whether it is trying to push through amendments to the Electricity Act, 2003, that centralize the selection of state power regulators (among other things) without deliberation in Parliament, to floating discussion papers from …
The current brinkmanship between financially stretched states and a fiscally hawkish Centre has turned the idea of market federalism into a game of my way or the highway.
Editor's note: A few weeks ago, 12 states were barred from trading on India’s short-term electricity markets as a penalty for non-payment of dues to power generation companies. The defaulting states’ power distribution companies cumulatively owed Rs 5,000 crore, which had been pending for a while. The dues were paid, the bar was lifted and life seemingly moved on. But the stakes have been raised in a sector where financial brinkmanship between financially stretched states and a fiscally hawkish Centre has been a perennial struggle. The Centre has made it amply clear, through a series of actions, that it plans to address the broader financial problems of India’s power sector with a certain amount of heavy-handedness. On 3 June, it notified the Electricity (Late Payment Surcharge) Rules, 2022, which gave the Ministry of Power, through Power System Operation Corp., this specific power to disconnect states from the national markets. Whether it is trying to push through amendments to the Electricity Act, 2003, that centralize the selection of state power regulators (among other things) without deliberation in Parliament, to floating discussion papers from …
The newly announced levy on UPI payments undermines the very foundation of using digital payments for stock market investing. Brokers are in a tizzy.
The Centre has proposed to open up the retail electricity market, hoping competition will fix India’s loss-making discoms. The states fear a power grab. The outcome will shape the next phase of India’s energy transition.
The government wants to limit AC temperature settings to a 20-28° C band to reduce power consumption.
The newly announced levy on UPI payments undermines the very foundation of using digital payments for stock market investing. Brokers are in a tizzy.
The Centre has proposed to open up the retail electricity market, hoping competition will fix India’s loss-making discoms. The states fear a power grab. The outcome will shape the next phase of India’s energy transition.
The government wants to limit AC temperature settings to a 20-28° C band to reduce power consumption.
