It must be tempting for Indian officials to link the success of last week’s Rural Electrification Corp follow-on offering to the structure they designed for the deal. It certainly worked better than a similar deal a couple of weeks earlier for NTPC.
But that would be a mistake. Although REC ended up with a decent result, the process is far from perfect.
Lessons were clearly learned from the NTPC fiasco, but the French auction structure leaves any deal open to the same problems. In a system where the highest bids
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