MoP proposes incentives worth Rs 885 billion for power sector

The MoP has proposed incentives worth Rs 885 billion to encourage power plants to install emission control equipment and develop infrastructure for electric vehicles (EVs). Of the total proposed incentive, about Rs 835 billion will be aimed at curbing sulphur emissions from power plants and the rest will be used for the development of EV infrastructure in 70 cities up to 2025. The ministry’s proposal is in addition to an existing one that envisages installation costs for emission control equipment to be passed on to consumers. The ministry’s plans come against the backdrop of a financially stressed power sector, with loans from mostly state-run lenders turning bad or requiring restructuring.