Ratings agency ICRA has termed approval of High-Level Empowered Committee’s (HLEC’s) recommendations for resolution of stressed thermal power plants as a positive move.
Sabyasachi Majumdar, group head – corporate ratings, in a statement said that these measures would auger well for the industry in medium- to long-term. “The measures approved such as allowing the use of domestic linkage coal for short-term PPAs and procurement of bulk power by the nodal agency against pre-declared linkages are positive for thermal IPPs, given that operational coal-based capacities of about 15-16 GW do not have long term PPAs,” he added.
Use of domestic linkage coal would enable generators to offer more competitive tariffs for short-term sale, which is also likely to benefit discoms given that they are purchasing larger volumes through short-term power purchase agreements (PPAs). Read More