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MUMBAI: The power crisis has come to the aid of independent producers who were finding it difficult to recover electricity dues from state governments. It has also given a fresh lease of life to power projects facing liquidation. In its meeting on operationalising commissioned power plants, the power ministry got states to agree on payments to power producers.
In the case of IL&FS Tamil Nadu Power, which has two projects of 600MW in the southern state, it was decided in the meeting that Tangedco, which distributes power in Tamil Nadu, would pay Rs 75 crore every week to liquidate around Rs 1,500 crore in the next five months. Lenders led by Punjab National Bank have agreed to facilitate the restructuring of the plant. The company would also be allowed to sell balance power to other states.
During the last meeting, it was discussed that Tangedco would extend the pass-through arrangement for the power purchase agreement (PPA) until December 2022. After that, 900MW (600MW in PPA and 300MW in short-term PPA) will be tied up with Tangedco and balance power will be sold to other discoms/exchange.
“This is a welcome step that will help ITPCL scale up its power generation to maximum capacity and take care of its short-term fund requirements. The company has also been facing severe challenges in restructuring its loans, pending receivables by Tangedco and PTC to the tune of around Rs 4,000 crore. These payments will also support the new board in its restructuring efforts of ITPCL,” said IL&FS spokesperson Sharad Goel.
The meeting was attended by bureaucrats, NTPC officials, lenders and independent power producers. It was also agreed in the meeting that the public sector NTPC will operate two coal-fired thermal power projects – SKS Power and Meenakshi Energy – that are facing insolvency proceedings.
In the case of Meenakshi Energy, State Bank of India has agreed to provide working capital with NTPC being entrusted to operate the plant. The resolution professional has been given a target date of May 31 to start operations at the two 150MW units.
In the case of IL&FS Tamil Nadu Power, which has two projects of 600MW in the southern state, it was decided in the meeting that Tangedco, which distributes power in Tamil Nadu, would pay Rs 75 crore every week to liquidate around Rs 1,500 crore in the next five months. Lenders led by Punjab National Bank have agreed to facilitate the restructuring of the plant. The company would also be allowed to sell balance power to other states.
During the last meeting, it was discussed that Tangedco would extend the pass-through arrangement for the power purchase agreement (PPA) until December 2022. After that, 900MW (600MW in PPA and 300MW in short-term PPA) will be tied up with Tangedco and balance power will be sold to other discoms/exchange.
“This is a welcome step that will help ITPCL scale up its power generation to maximum capacity and take care of its short-term fund requirements. The company has also been facing severe challenges in restructuring its loans, pending receivables by Tangedco and PTC to the tune of around Rs 4,000 crore. These payments will also support the new board in its restructuring efforts of ITPCL,” said IL&FS spokesperson Sharad Goel.
The meeting was attended by bureaucrats, NTPC officials, lenders and independent power producers. It was also agreed in the meeting that the public sector NTPC will operate two coal-fired thermal power projects – SKS Power and Meenakshi Energy – that are facing insolvency proceedings.
In the case of Meenakshi Energy, State Bank of India has agreed to provide working capital with NTPC being entrusted to operate the plant. The resolution professional has been given a target date of May 31 to start operations at the two 150MW units.
