19 GW of stressed power assets eligible for SHAKTI-II: Crisil


19 GW of stressed power assets eligible for SHAKTI-II: Crisil

As many as 19 gigawatt (GW) capacity out of the 40 GW identified as stressed power assets can participate in the second phase of the government’s Scheme for Harnessing and Allocating Koyala (coal) Transparently in India (SHAKTI) programme, according to Crisil.

The Lok Sabha’s standing committee on energy has identified 34 power plants with a cumulative capacity of 40 GW as stressed assets due to lack of adequate fuel supply, absence of power purchase agreements (PPAs), weak financials of promoters, among others.

“Our assessment of the 34 power plants suggests 19 GW of the 40 GW capacities do not have medium or long term PPAs, and hence, can participate in SHAKTIII provided they meet other eligibility criteria set by Coal India for participation in the auction,” the rating agency said in a note Monday.

However, it noted that successful bidders under SHAKTI-II may find it difficult to secure long-term PPAs, given the high fixed cost of many of these projects. Read More

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