(FE)
Stress faced by coal-based power projects in India has eased significantly with an increase in electricity demand, improved coal availability and government initiatives, experts said. However, delayed payments by distribution companies continue to pose challenges to power producers.
With continuity of RK Singh as the minister for power and renewable energy, the industry hopes faster implementation of many pending proposals from the last government, including a payment security mechanism for private power producers as recommended by a cabinet secretary-led committee. Of the 40 GW capacity from 34 coal-based power that had been identified under the ‘stressed assets’ category by the government, about 16 GW are yet to be resolved while the remaining projects are able to fully or partly meet their debt obligations, Association of Power Producers director-generator Ashok Khurana said.
