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sector concerns sharply under focus include domestic coal shortage, worrisome stateof utility finances, continuing dip in short-term price of electricity, and rising commodityprices and borrowing costs with fixed price contract for sale of electricity. Financiersare therefore bound to exercise more caution, although this need not necessarily be abarrier and could help bring the focus back on improving the preparedness of projectsfor financing as well as on addressing fundamental underlying factors impacting thesector’s sustainability.Figure 3-34: Average retail tariff in selected Indian statesPer cent1009080706050403020100Banks IFCs Govt. Other FIs300 550 610 65018040806030160State Centre Private10201050 10Some large developers have multiple projects under construction and their leveragehas increased. Financiers wary of lending further without enhancement in equity base.Power sector concerns that are sharply under focus at present are:• Domestic coal shortage vs. price pressure for imported coal;• Worrisome state of finance of state utilities;• Continuing dip in short-term price of electricity; and• Rising commodity prices and borrowing costs with fixed price contract for sale ofelectricity.Given these constraints, there is bound to be more caution exercised by financiers inthe immediate future. This is not necessarily a barrier; in fact, they help bring focusback to improving the preparedness of projects for financing as well as addressingfundamental underlying factors impacting the sector’s sustainability. In the mediumterm, concerted action from the government towards deepening the availability of longtermfinance for the sector is crucial to realize India’s dream of achieving 100 GWcapacity addition over the 12 th FYP.D. Financing advanced technologiesThe role of public financing in the life-cycle of technology financing is depicted inFigure 3-35.127