MoP directs all imported coal-based power plants to operate at full capacity

The central government has directed all power plants running on imported coal to operate at full capacity, invoking section 11 of the Electricity Act, in order to address the country’s energy crisis.

These plants will supply power in the first instance to the power purchase agreement (PPA) holders. Any surplus power left thereafter or any power for which there is no PPA will be sold at the power exchanges. Considering the fact that the present PPAs do not provide for the pass through of the present high cost of imported coal, the rates at which the power shall be supplied to PPA holders will be worked out by a committee constituted by the Ministry of Power (MoP) with representatives from MoP, Central Electricity Authority and Central Electricity Regulatory Commission. The PPA holders will have an option to make payment to the generating company according to the bench mark rate worked out by the group or at a rate mutually negotiated with the generating company. Payment at the above rates shall be made to the genco on a weekly basis. Bench mark rates worked out by the committee will be reviewed every 15 days taking into consideration the change in the price of imported coal; shipping costs etc. The order will remain valid up to October 31, 2022. Additionally, the MoP has directed all states and all gencos based on domestic coal to import atleast 10 per cent of their requirement of coal for blending.

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