PGCIL has two types of assets:
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Regulated Tariff Mechanism (Cost Plus) - Here the ROE is capped at 15% - All other costs are reimbursed. Most of the assets for PGCIL fall under this category.
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Tariff Based Competitive Bidding (TBCB) - Awarded through competitive bidding. Theoretically speaking, the ROE here can be more than 15%. However, the current rounds of bidding have been extremely aggressive with new players entering the market (likes of GR Infra, Indigrid, Renew etc).
Industry players would choose RTM projects over TBCB any day.
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