The central government has put forward a proposal whereby states can buy electricity from projects that are currently stuck without any power purchase agreements (PPAs), but are able to quote low rates. Under the plan, existing suppliers will get paid assured rates, states will get power cheaper and new projects will become operational, thus helping them generate a cash flow.
According to a report by a parliamentary committee, there are 34 stressed coal-based power projects. These include projects of JP Power, GMR and Essar. The 34 projects have a total capacity of 40,130MW — 24,405MW commissioned and 15,725MW under construction. The total outstanding debt in these 34 stressed projects is Rs 1,74,468 crore. Read More