Virendra Pandit
New Delhi: To manage the rising power crisis in several states facing an acute shortage, the Centre has directed imported coal-based plants to generate power at their full capacity.
For this, the government has invoked Section 11 of the Electricity Act that empowers the authorities to order any generating company to operate and maintain its power stations, according to the media reports on Friday.
Officials expect the directive would help generate at least 7 Giga-Watt (7,000 MW) of power from imported coal-based plants of private players in Gujarat, Andhra Pradesh, and Tamil Nadu and also those under the National Company Law Tribunal (NCLT).
It will also help restart non-operational units of Adani Power and Tata Power, the reports said.
Of the imported coal-based plants’ combined capacity of 17,600 MW, they are generating only about 10,000 MW because coal prices have gone through the roof in global markets. India’s private players are awaiting compensation for the price difference, sources said.
The Electricity Act’s Section 11 empowers the government, in extraordinary circumstances, to order any power-generating company to operate and maintain its stations.
These plants will supply power to power purchase agreement (PPA) holders. Any surplus power shall be sold in the power exchange.
Armed with this authority, the state governments will buy power from exchanges while the commercial issues could be resolved later. This will help increase electricity availability in the country, the reports said.
A committee constituted by the Union Ministry of Power, Central Electricity Authority and the Central Electricity Regulatory Commission will work on the power tariffs of the projects operating on high-cost imported coal.