News Detail

Centre provided a big relief to 34 Coal Based Power Projects that were in dearth of PPAs by proposing scheme wherein states can buy electricity from projects through a competitive bidding process, quoting low rates. This scheme is a win-win move for both generators and states, where an idle generators liquidates by power generation and reducing Power Deficit situation that arises due to late monsoons and unexpected weather conditions and on the other side States gets electricity at low rate.

Pit head stressed plants should feast this opportunity for reviving their sapped investments through assured returns, as they are competitive under the scheme owing to reduced transportation cost. To boost further investments  and curb ailing debts on stressed assets, RBI's stringent conversion terms of existing loans through restructuring needs to be reviewed so as to shape a better timelines for repaying loans and not defaulting borrowers on this record.