as a result average price of electricity sold covers only a portion of the average production costs the total underrecovery of costs which was estimated to be inr billion usd billion in mof b discourages private investment in the indian power sector mathy and guivarch since august four of the regional grids have been integrated the northern eastern western and north eastern grids the newne grid only the southern grid still operates independently covering the states of andhra pradesh karnataka kerala tamil nadu pondicherry and lakshadweep