Shri R.K. Singh chairs meeting with IPPs, assures of suitable action to resolve their problems

In the meeting, the issue of recent RBI circular, which lays down stringent provisioning norms on default of even one day in payment to the lenders, was raised by IPPs prominently, particularly in the context of delay in payment by DISCOMs including non-payment of Late Payment Surcharge (LPS).

Some of the IPPs raised concerns about delay in disposal of tariff petitions by Regulators regarding compensatory tariff for increase in taxes, duties, cess etc levied by Government. They also mentioned that escalation index of CERC does not reflect the actual increase in coal prices and requested CERC to make a separate index for power sector.

The meeting discussed the issues related to coal supply in detail. IPPs also brought up the issue related to implementation of new environmental norms and requested for early clarification regarding pass-through of the consequential increase in the cost of generation. They also raised the issue of financing of the capital costs for the new equipments to meet the norms.

The Minster recognised the important role played by IPPs in capacity addition and addressing power shortage in the country. He said that their concerns would be examined into and assured them of suitable action in consultation with concerned departments to strengthen the power sector.

The contribution of IPPs in thermal generation is substantial. Total installed capacity (including renewables) of private sector is 1,48,896.74 MW, amounting to 44 per cent of the total capacity of 3,34,399.83 MW in India.

Senior officials from the Ministry of Power, Central Electricity Authority, Central Electricity Regulatory Commission, Ministry of Coal, Ministry of Railways and Ministry of Finance were present in the meeting.

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Source: pib.nic.in