Union Power Minister reviews issues of Independent Power Producers (IPPs)

IAS Prelims 2023

Union for Power and NRE Shri R.K. Singh met the members of Association of Power Producers (APP) today (3rd September,2021). The Minister heard the issues raised by members of APP and gave instructions to Ministry of Power (MoP):-


  • Keeping in view the increasing power demand, the Minister emphasized the need for making certain that the entire established power generation capacity is utilized. 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):


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


(b) In order to make coal available for longer period, 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.

  • 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.  APP requested for extension of time line in view of lack of PPAs in the market.  APP also requested to reduce the Bank Guarantee.  MoP agreed to examine the request in consultation with Ministry of Coal (MoC).


  • Atmanirbhar Bharat: In the liquidity infusion scheme, Equal treatment may be given to all Gencos on First In First Out (FIFO) Basis.


  • Installation of FGD:- It was suggested to examine the Orders of CERC in terms of recovery of depreciation and interest rate allowed for recovery.


  • Revival of gas based plants: APP requested for separate window for auction of gas for power plants. Issue to be taken up with Ministry of Petroleum and Natural Gas.


  • Mega Power Policy:-The request for suitable amendment in the policy is being taken up through inter-Ministerial consultation.


  • MoP advised IPPs on reciprocal basis not to derail the regulation of power by Central Gencos in case of non-payment of dues by Discoms




    Source PIB