Graphic: Subrata Jana/MintThe Uttar Pradesh Electricity Regulatory Commission’s decision to not approve the 200 megawatts (MW) power-purchase agreement (PPA) between the Noida Power Co. Ltd and Dhariwal Infrastructure Ltd once again raises a question mark over CESC Ltd’s earnings. As the company began talking about the now disapproved PPA, analysts had started to pencil in an improvement in profitability next fiscal year. With the situation now back to square one, FY18’s earnings estimates can see substantial cuts unless the company manages to secure other PPAs. PAT stands for profit after taxOf course the company is actively looking to tie-up the rest of the troubled plant’s capacity. As the Uttar Pradesh Electricity Regulatory Commission’s order points out, tariffs in competitive bids have fallen below Rs4 per unit.

Source: Mint November 17, 2017 01:52 UTC