Cabinet powers financial aid for stranded pvt electricity projects
27 March 2015 5:26 AM IST
In a bid to revive Rs 60,000 crore of stranded power projects, the Cabinet on Wednesday approved financial support to private companies to help them use costly imported gas (LNG) for generating electricity. Thirty-one power stations with a combined capacity of 14,305 megawatt, which are languishing because of want of gas, can bid for support from the Power System Development Fund for generating 30 per cent of their installed capacity, called plant load factor, using imported liquefied natural gas (LNG).
Power companies seeking lowest support from PSDF, after considering an electricity tariff of Rs 5.50 per unit, will get the first right over LNG, whose delivered price too will be slightly reduced by asking importer and transporter to take a hair cut in marketing and operational cost, Power Minister Piyush Goyal said after a meeting of the Cabinet Committee on Economic Affairs. While the private power stations will bid for the financial support, the actual money from PSDF, which collects fines from states for grid indiscipline, will go to the distribution company. PSDF currently has accumulated a kitty of Rs 9,500 crore but the CCEA had decided to cap the support at Rs 3,500 crore in 2015-16.
Power companies seeking lowest support from PSDF, after considering an electricity tariff of Rs 5.50 per unit, will get the first right over LNG, whose delivered price too will be slightly reduced by asking importer and transporter to take a hair cut in marketing and operational cost, Power Minister Piyush Goyal said after a meeting of the Cabinet Committee on Economic Affairs. While the private power stations will bid for the financial support, the actual money from PSDF, which collects fines from states for grid indiscipline, will go to the distribution company. PSDF currently has accumulated a kitty of Rs 9,500 crore but the CCEA had decided to cap the support at Rs 3,500 crore in 2015-16.
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