Price of power in India

The current guidelines of the Central Electricity Authority (CEA) of India pose pricing problems of power for the Independent Power Producers (IPPs). The CEA is the agency that gives out guidelines and sets tariffs for power projects in the country. CEA guidelines determine operating parameters, imposing tariffs that mitigates the incentives of the IPP to find loans and develop cheap alternative fuel. Moreover, the guidelines do not benefit IPPs for diminishing capital costs. The combined political risk and bureaucracy in the country also serve to hinder the development of power projects.