India plans to allow relinquished coal-fired plants to sell power
BENGALURU: India’s power ministry proposes letting coal-fired power plants keep selling power after completing their agreements with buyers, a letter seen by Reuters shows, despite national promises to close old plants to curb pollution.
The proposal, if approved, would help old coal plants earn additional revenue, increase liquidity in short-term power markets and help distribution companies in states facing a power deficit access cheaper power, the ministry said in the draft proposal dated Friday.
“It is in the consumer interest to keep the tariff of electricity as low as possible,” says the letter sent to power departments of India’s states and the heads of federal government-run utilities such as NTPC Ltd.
