R K Singh Reviews Issues of Power Producers

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“Union Minister for Power and New & Renewable Energy R K Singh met the members of Association of Power Producers (APP). The minister heard the issues raised by members of APP” said the power ministry statement.

Keeping in view the increasing power demand, the minister emphasised the need for making certain that the entire established power generation capacity is utilised. For this, he directed for streamlining and simplifying guidelines/procedures for short term coal linkage auctions under SHAKTI B (viii) (a) for Thermal Power Plants not having Power Purchase Agreements (PPAs).

The Ministry of Power has agreed for three separate windows for auction (of coal) namely, 3 months, 6 months and one year. The MoP in consultation with Ministry of Coal (MoC) will ensure its implementation, it stated.

In order to make coal available for longer period, the MoP will examine whether duration of auction can be extended for more than one year. Issue of Bank Guarantee is also to be examined if duration has to be extended beyond one year, it stated.

Under the SHAKTI B (iii) auctions (Coal linkage for projects without PPA), as per policy, PPA (long term/medium term) needs to be submitted within two years after auction of coal.

The APP requested for extension of time line in view of lack of PPAs in the market. APP also requested to reduce the Bank Guarantee.

The MoP agreed to examine the request in consultation with Ministry of Coal (MoC).

In the liquidity infusion scheme, Equal treatment may be given to all Gencos on First In First Out (FIFO) Basis, it said.

For Installation of FGD (Flue-gas desulfurization), it was suggested to examine the Orders of CERC (central electricity regulatory commission) in terms of recovery of depreciation and interest rate allowed for recovery.

Under the Mega Power Policy, the request for suitable amendment in the policy is being taken up through inter-Ministerial consultation, it added.

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