In light of increasing burden of electricity tariffs on financially stressed discoms stemming from delays in construction of power plants, a parliamentary committee on energy wants the revision of power purchase agreements (PPAs) with these plants. There are 19 thermal power plants, under the Central government, where construction delays have raised project costs to Rs 1.99 lakh crore from the initial estimate of Rs 1.87 lakh crore. Similarly, there are 13 hydro power plants being built by central government units, where project expenditure has gone up to Rs 86,698 crore from Rs 50,336 crore due to time overruns in construction.<\/p>\n
The parliamentary panel recommended the Union power ministry to \u2018make a provision for review of such PPAs, wherein, tariff has been increased owing to cost overrun due to delay in development of a power project\u2019. While observing that \u2018the issue of long term PPAs has become a conundrum\u2019, the panel noted that \u2018on one hand, there are power generators who insist on honouring of long-term PPAs at any cost as they have made huge investments in their projects while on the other hand, there are discoms who do not want to purchase power at higher rate through long-term PPAs as it is available at much cheaper rate in short term market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
In light of increasing burden of electricity tariffs on financially stressed discoms stemming from delays in construction of power plants, a parliamentary committee on energy wants the revision of power purchase agreements (PPAs) with these plants. There are 19 thermal power plants, under the Central government, where construction delays have raised project costs to Rs 1.99 lakh crore from the initial estimate of Rs 1.87 lakh crore. Similarly, there are 13 hydro power plants being built by central government units, where project expenditure has gone up to Rs 86,698 crore from Rs 50,336 crore due to time overruns in construction. […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-342054","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/342054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=342054"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/342054\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=342054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=342054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=342054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}