Power plants start tariff revision talks

Coal-fired thermal power plants are getting ready to begin talks on signing supplementary power purchase agreements (PPAs) after the power ministry invoked emergency provisions.

Analysts are projecting multiple benefits: they feel the development could lead to a major improvement in the capacity utilisation or plant load factor (PLF) of thermal power units apart from a rise in merchant power rates.

Besides, thermal coal price has fallen in the global markets which could further improve their bottomline that may be reflected in their financial performance.