Power and telecommunication sectors have seen excess capacity and squeezing margins after aggressive bidding, both for electricity tariffs and spectrum, over the years. Regulatory challenges and setting templates for realistic bids could be the way forward.
Renewable status
India is targeting to add 1 lakh Mw of solar and 60,000 Mw of wind power by 2020 to meet its climate change commitment of 40% power generation from renewable sources. While solar power has seen an unprecedented rise, wind has slowed down due to change in bidding terms. Solar is also facing low tariff pressure and lack of financing.