MoPdirectsPFC, REC to arrangeshort-term loans forimported coal-based plants under stress

The Ministry of Power (MoP) has directed Power Finance Corporation Limited (PFC) and RECLimited to take necessary action to arrange short term loans for a period of six months with adequate safeguards, for imported coal-based (ICB) plants which are under stress or in National Company Law Tribunal (NCLT), at the earliest.

These plants need working capital to buy coal and start generating power in order to restart their operations. In view of increased demand and unprecedented pressure on domestic coal supplies, MoP, on May 5, 2022 issued directions to all ICB plants under Section 11 of the Electricity Act, 2003 to operate and generate power to their full capacity, even for projects which are stressed or under NCLT. These directions will ensure that additional electricity is produced through imported coal and will be a net addition.These directions will be effective upto October 2022.

 

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