NEW DELHI: India may be heading for power shortages during summer when the country will go to the polls as private producers have not been paid Rs 14,600 crore by state utilities which has created a shortage of funds, particularly for coal and rail transportation which requires advance payments.
Private producers have asked the government to intervene and make state utilities pay up so that they can build fuel stocks that are needed to meet summer demand, which is expected to surge. Industry sources said thermal power plant capacity of at least 15,000-mw is deeply impacted by the financial crisis as state power distribution utilities are faltering on timely bill settlements.
