Private power generators face slew of hurdles; seek short-term solution from govt
Privately-run power generators, which contribute half of India’s installed capacity, are plagued with a slew of problems. These include unrealised dues from State-run distribution utilities (DISCOMs), discrimination in granting fuel-linkages and power purchase/sales agreements (PPAs), and having to cope with stiff environmental norms.
On February 27, the Association of Power Producers (APP), a body of independent power producers (IPPs), in a letter pointed to the Union Power Minister that introduction of LC-based power purchase had stopped piling up of current dues since August 2019.
However, earlier dues amounting to ₹43,170 crore remain unrealised. A majority of these dues are piled up with a handful of States like Uttar Pradesh, Tamil Nadu, Karnataka, Rajasthan, Andhra Pradesh, and Telengana. The amount is increasing progressively due to addition of late payment surcharge.
