The Economic Survey expressed concern over aggressive bidding by private companies for bagging licences for spectrum, coal mining and renewable energy projects. "It leads to price discovery, benefiting the consumers, and on the other hand often kills the sector. So I advocate median bidding by eliminating outliers, which will force bidders to bid rationally yet maintain transparency," he said.Companies have put in aggressive bids for bagging captive coal blocks auctioned after mass cancellations of coal mining licences by the Supreme Court in 2014. Banks are concerned over the viability of the low solar and wind power tariffs quoted by companies to bag contracts.The survey said that states need to focus on reducing their technical and commercial losses through tariff revisions. "However, the higher tariffs face potential threat from lower solar and wind prices.

Source: Economic Times January 29, 2018 08:48 UTC