(ET)
Power plants have been exempted from advance coal and freight payments for three months, which will prevent supply disruption during the lockdown and give a major relief to generating firms, particularly in the private sector.
A senior ministry official said the short-term dispensation was requested by private power companies that constitute 35% of Indian electricity generation base as they cited cash crunch due to non-payment by discoms. State and central generating companies including NTPC also face the problems but the power ministry on Friday directed them to supply electricity to even defaulting state electricity distribution companies through a three- month moratorium.
The official said power minister R K Singh has written to coal minister Pralhad Joshi and railways minister Piyush Goyal seeking the exemption for three months to maintain electricity supply as the country remains in lockdown till April 14.
