Hydel power producer NHPC comes to the aid of stressed thermal gencos

Thermal power producers, who are not getting enough buyers, finally get a taker in hydel power producer NHPC, which could help such power producers in getting coal linkage. Having a power purchase agreement (PPA) in place is a pre-requisite for getting coal linkage and NHPC would help such gencos, whose assets turned stressed for want of coal, to get back in operation.

PFC Consultancy has roped in NHPC as an aggregator. It would procure an aggregate of 2,500 MW for three years through competitive bidding from coal-based power producers, who have no PPAs in place. There are coal-based stressed assets aggregating generation of 40 GW, of which 28 GW is already commissioned.

NHPC would procure 2,500 MW of power from plants that are already commissioned. This would help at least 12 GW of commissioned power plants to get into a medium-term PPA. This in a long term would help them in getting coal linkage and help the assets get unlocked, an NHPC official said, adding such plants have been valued at more than Rs 60,000 crore and are in the category of stressed assets.