POWERGRID has signed an Memorandum of Understanding (MoU) with Ministry of Power, Government of India for Financial Year 2019-20 on 24th May 2019 in New Delhi.
With state-run electricity distribution companies (discoms) missing key targets of the UDAY scheme, the government is looking at options to “insulate” these entities from the risk of delayed payments from bulk consumers such as local bodies and state government departments.
The power ministry has disputed a recent report from credit ratings agency CRISIL that said state electricity distribution companies (discoms) would see their external debt increase to pre-UDAY levels of ₹2.6 lakh crore by the end of this fiscal.
The power ministry’s second auction for procuring 2.5 GW of thermal power in medium term at a higher tariff of Rs 4.41 per unit compared to Rs 4.24 per unit in the first round is positive for power producers, but signing of sale agreements with discoms remains crucial, ICRA said on Thursday.
Reduced power demand has been an issue for some time in India and it has been blamed largely on financially challenged DISCOMs (utility companies). One of the most overlooked reasons is energy efficiency.
The Ministry of Power has written to the Central and State Electricity Regulatory Commissions to enforce tariff rationalisation for hydropower projects. These measures are expected to bring down tariff for power generated from a new hydropower project, a Power Ministry notification said.
Power Minister R K Singh Thursday ruled out consolidating all state-owned power sector firms like NTPC, NHPC, SJVNL and PFC into a single entity, saying it would be the biggest company of the world but will not be manageable.
The government on Thursday cleared investment proposals worth over Rs 31,560 crore in power projects, including two coal-based thermal plants and a hydro project on river Chenab in Jammu and Kashmir.
The latest sets of data from the power ministry suggest that the sector has witnessed a smart turnaround, mostly because of the UDAY scheme introduced a few years ago.
Power Minister, Th Biswajit replying to Dr Chaltonlien Amo stated that electrification of Tipaimukh areas have already started during the first week of February 2019 and is targeted to be completed by March 2019.