Power Grid was under pressure on bourses last week as the street factored in lower return on equity (RoE) after the Central Electricity Regulatory Commission (CERC) proposed to reduce regulated RoE for renewables.
Speaking to CNBC-TV18, IS Jha, CMD, Power Grid said the proposal by CERC is for renewables only and it is not fair to compare RoE reduction for renewables to transmission. He said the company won’t be significantly affected by the new CERC proposal. Projects worth Rs 1.30 lakh crore are to be commissioned over the next four years and the company will be able to sustain its capex and capitalisation at current levels, he said.
He further added the payment cycle has improved in many states post demonetisation.