New Delhi: The government has extended the directive for imported coal-based power plants to run at full capacity till June 30, two people aware of the development said. The earlier order from the power ministry for such plants, which together contribute around 17 GW to India’s capacity, ended on April 30.
There are 15 imported coal-based power plants including Tata Power Co. Ltd’s Coastal Power Gujarat, Adani Power Mundra Ltd, Essar Power Gujarat, and JSW Ratnagiri.
The total capacity of these plants is significant in meeting the peak power demand, which has been constantly rising and is anticipated to increase further.
The directive comes under Section 11 of the Electricity Act, which provides that the government may, in extraordinary circumstances, ask a power generation company to operate and maintain any station.
“In view of the power demand scenario in the country, it has been decided to extend the time period of section 11 directive…,” according to a notification seen by ET.
The directive allows the plants to recover costs through power purchase agreements if the tariff is higher because of expensive fuel costs. The ministry fortnightly issues benchmark energy charge rates for the plants.
The section 11 directive by the ministry has continued for almost two and a half years now as India’s power demand continues to grow. The latest extension is aimed at ensuring adequate capacity amid the ongoing summer season.
The government expects peak power demand at 270 GW in June. Peak demand in February had moved higher than projected at 238 GW in solar hours compared to the projected 234 GW. April, however, saw a peak of 233 GW compared with 238 GW, based on weather patterns.
There are 15 imported coal-based power plants including Tata Power Co. Ltd’s Coastal Power Gujarat, Adani Power Mundra Ltd, Essar Power Gujarat, and JSW Ratnagiri.
The total capacity of these plants is significant in meeting the peak power demand, which has been constantly rising and is anticipated to increase further.
The directive comes under Section 11 of the Electricity Act, which provides that the government may, in extraordinary circumstances, ask a power generation company to operate and maintain any station.
“In view of the power demand scenario in the country, it has been decided to extend the time period of section 11 directive…,” according to a notification seen by ET.
The directive allows the plants to recover costs through power purchase agreements if the tariff is higher because of expensive fuel costs. The ministry fortnightly issues benchmark energy charge rates for the plants.
The section 11 directive by the ministry has continued for almost two and a half years now as India’s power demand continues to grow. The latest extension is aimed at ensuring adequate capacity amid the ongoing summer season.
The government expects peak power demand at 270 GW in June. Peak demand in February had moved higher than projected at 238 GW in solar hours compared to the projected 234 GW. April, however, saw a peak of 233 GW compared with 238 GW, based on weather patterns.
You may also like
Bengal CM Mamata Banerjee visits site of Kolkata hotel fire, forms probe committee
Won't let Delhi face water crisis, says CM Rekha Gupta amid tussle with Punjab
Aanand L. Rai, Hemant Dhome reunite for 'Krantijyoti Vidyalay – Marathi Madhyam'
PM took decision for upliftment of future generations: Bihar Dy CM lauds announcement on caste census
Techie put on PIP, but he chose to walk away with a 5-month salary offer. Netizens more interested in knowing which company?
