Hard-up power companies may get breather on coal use
New Delhi: The government is working on a plan to allow cash-strapped power plants to use their existing fuel supplies from Coal India LimitedNSE 1.32 % (CILNSE 1.01 %) to generate electricity for sale in the open market.
Due to low electricity demand during the lockdown, distribution utilities have stopped power offtake and are unlikely to issue new medium-and long-term tenders for purchase of electricity.
A senior power ministry official said the power ministry is working on a proposal to end restrictions on use of coal to produce electricity for supply only to long- and medium-term power purchase agreements (PPAs).
