How feasible is Indian market for power-producers; new hurdle awaits solar companies


How feasible is Indian market for power-producers; new hurdle awaits solar companies

Power producing companies have a new roadblock, making the Indian market a little more unfeasible for them. Distribution companies have held back a huge sum of money from the power-producers. Payment of Rs 21,198 crore to the power companies is still pending with the distribution companies, according to a reply in Rajya Sabha.

With a due of Rs 4,768 crore, Uttar Pradesh has topped the list of states with highest defaults by discoms, followed by Karnataka at Rs 3,256 crore. Similarly, the distribution companies have defaulted on a payment of Rs 13,820 crore to the wind and solar companies, according to Indian Renewable Energy Development Agency (IREDA).

 Roadblocks for power-producers
  • Over-dependence on imported coal due to poor quality of coal found in India, mining inefficiencies and environmental issues in opening up of new mines have troubled the power companies.
  • Transmission inefficiency is another problem as almost one-fourth of what is generated is lost in transmission.  Read More

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