The move comes on the backdrop of the deep financial stress being faced by the power industry due to non-payment of dues The Union power ministry has directed electricity generators to snap supplies to state distribution companies which have failed to open or maintain bank guarantees. Following this directive, the states will have no option […]
Govt bars defaulting discoms from short-term power purchases in open market
Letter of Credit to be mandatorily used as payment security mechanism for long-term PPAs signed by loss-making discoms The Centre in a bold move to discipline the state-owned loss making power distribution companies (discoms) announced that the ‘Letter of Credit’ should be mandatorily followed as a payment security mechanism. At the same time, it also […]
Govt puts in place payment security mechanism for discoms to buy power
In a big relief to the stressed power sector, the government Friday approved the proposal for implementation of a payment security mechanism for purchase of electricity by distribution companies from generating firms. The power ministry has made it mandatory for discoms to open and maintain adequate letter of credit (LC) as payment security mechanism under […]
NTPC: demand new challenge for India’s top power producer
A sustained fall in utilization levels can be a major earnings risk, and running plants at sub-optimal levels would hit returns While tariffs in renewable energy have steadily fallen to ₹2.50 per unit, the average tariff at NTPC has risen from ₹3.18 in FY16 to ₹3.38 in FY19 While fuel availability is normalizing for NTPC Ltd, a new challenge […]
Next goal 24/7 power for all; agri exempted from round the clock supply
According to the union power ministry states electrified 25 million households under Saubhagya in 17 months Union minister of state for power R K Singh on Tuesday said the country was on path to achieve 100% household electrification by March 31, 2019 and the next goal would be for 24/7 power for all households. The […]