Relief On Way For Fuel-starved Power Plants

Relief On Way For Fuel-starved Power Plants

Power plants idling away due to non-availability of coal may soon get relief, with the government planning to relax electricity procurement norms for distribution companies.

Sources said the government may tweak guidelines to exempt the buyer from paying a fixed cost to the generator in the event of non-purchase of electricity, a move that would encourage distribution companies to float tenders for electricity supply and sign new power purchase agreements (PPAs), thereby helping idling generating stations secure fuel supply from Coal India.

Sources said the Union power ministry has decided to constitute a committee to look into the prospects of developers voluntarily waiving off fixed costs for  dicsoms that sign PPAs with stressed plants.

The proposed changes will make it mandatory for discoms to take a minimum electricity supply  from the plants, sources said.

According to industry estimates, some 14,000 mw capacity do not have power supply tie-ups which would make them eligible to procure coal supply from CIL.

 

Image Credit : Financial Express

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