Cabinet okays plan to revive stressed power assets

New Delhi: The Union Cabinet has approved a list of suggestions put forth by a group of ministers in relation to stressed power projects on Thursday. The recommendations include granting coal supply to power plants for short-term power purchase agreements, renewable status to hydroelectric plants and the clearance of an investment of Rs 21,000-crore for developing two new coal-based plants in Bihar and Uttar Pradesh.

The Cabinet has also given its nod to power plants to use coal contracts in case of termination of power purchase agreements, which are as a result of payment default by discoms. The recommendations also comprise the obtaining of bulk power by a nodal agency against pre-declared Coal India contracts and increasing coal quantity for special auctions to power sector.

Other plans on the anvil

Additionally, the acquisition of Lanco Teesta Hydro Power Ltd (LTHPL) and the execution of balance work of the sixth phase of the Teesta project in Sikkim by NHPC Ltd, valued at Rs 5,748 crore, were all given the green light by the Cabinet.

Investment for projects announced by Prime Minister Narendra Modi in 2015, comprising the building of 1320-MW thermal power projects each at Buxar in Bihar by SJVN Ltd and Khurja in UP by THDC Ltd, were approved.

The Cabinet also approved an investment sanction of Rs 4,287 crore for the construction of 624-MW Kiru Hydro Electric Project located on river Chenab in Jammu & Kashmir by J&K state power development utility joint venture and NHPC. Chenab Valley Power Projects Pvt Ltd is scheduled to complete the project in 4.5 years.