The biggest players in the Indian electricity market are now in talks to buy power from the government-run grid.
Here is what you need to know about the deals and how they could change the game.
The two big players: E-powerIndia and NTPCThe two largest players in Indian electricity supply are E-PowerIndia and TNPC.
They have been negotiating to buy grid electricity for a long time.
The last contract worth Rs 7,000 crore was signed in February last year.
The agreement covers a period of up to five years, from January 1, 2021, to March 31, 2022.
The government is paying E- PowerIndia Rs 2,000 per megawatt hour, while TNPC is paying Rs 2.50 per megowatt hour.
The E- powerIndia deal is worth about Rs 2 lakh crore ($400 million).
Why E- and TNP are so keen to buy grids?
Both of these players have a lot of experience in the power sector.
E- electricityIndia was set up in 2007 and TN-PC was set-up in 2012.
They are two of the largest electricity distributors in India.
Both have been looking to take advantage of a low price environment.
TNPC has been negotiating with the Indian Government for several years, but was unable to sign a deal with the government in 2017 because of a lack of money.
The power sector in India is currently in the worst state in the world and E-Pipeline has to be very careful in how it negotiates deals with the country.
The price of electricity in India has been increasing at a slower pace than in other countries in recent years.
This has prompted many analysts to suggest that the power market in India could be in a crisis soon.
However, E-pipeline will not have to worry too much.
The company has a lot more money to invest in infrastructure projects, like the Mumbai Power Project.
What are the big hurdles E- or TN-pips faced?
E-EnergyIndia is the largest power distributor in India, having a turnover of Rs 8,000-9,000 crores.
Its contracts are for a period ranging from five years to five decades.
TNP is a smaller player with a turnover worth Rs 1,200 crore ($220 million) and has been operating for about a decade.
In comparison, E.
EnergyIndia and its parent company are in talks for a five-year contract worth about $1 billion ($1.8 billion).
E- EnergyIndia has already agreed to buy its own power, with the deal expected to be finalized in the next two months.
TN-Pips problems are mainly related to the cost of its electricity, with E-energyIndia already having a contract worth nearly $1.4 billion ($9.4 million) with a 25-year option.
The electricity company has not received any subsidy from the Indian government and its rate of return is not the best.
TN Pips problems could also be due to a lack the amount of power it has to supply to the grid.
EnergyIndia and other power providers are also looking to increase their power supply to a critical level in the coming months.
How are E and TN Pipeline likely to compete?
E-Power India has a good track record of generating and supplying power to the power distribution companies, while its other rivals, such as E-NPC and TN Power, are facing some hurdles.
E and Pipelines deal is only worth about two-thirds of TN Power’s contract, while the rest is a long-term agreement.
E Energy India has already started the process of buying power from private power producers, which has already taken place.
The other two players have yet to get a chance to negotiate with the national government.
The cost of electricity could also go up for both E and Cipelines.
E PowerIndia and E NPC are looking to sell power at low prices, while E and E Pipela are looking at making a profit by increasing their profits by selling power at high prices.
The deals could also involve selling more power to smaller power companies to increase its profits.
How does E and TennP plan to sell their power?
E and M Pipel is planning to sell its power to private power generators.
E is also planning to buy more power from small power companies.
Both companies are also working on a scheme to raise about $400 million ($700 million) by selling off power from their own power plants.
Why are the Indian power supply companies facing so much uncertainty?
The government has a large deficit of Rs 1.5 lakh crore.
The National Green Energy Mission is set to be rolled out in the states in the first half of 2019.
The state-owned power companies are struggling to meet the demand of the poor.
This is in addition to the fact