Power prices see a spike as states go on buying spree in poll season

India has general elections next year with the present government's tenure expiring May 2019

As the coal supply situation fails to improve and general elections expected in the first half of next year, states are on a power buying spree. Major states lately have issued short-term (3-4 months) contracts totalling 23 GW for supply period up to April 2019.

The sudden demand spike has also pushed up the prices. Most states including Maharashtra, Uttarakhand, Bihar, Chhattisgarh have received bids at Rs 6 and above.

Market experts hint towards pressure on state-owned power distribution companies (discoms) to provide round-the-clock power during election season. States, however, are citing a lack of coal at their units coupled with increasing