Gencos

Fitch stated that the receivable position of generation companies (gencos) will continue improving in the near term

The power ministry is looking at a quicker turnaround of these stressed power plants and enhancing power supply

Power generating companies that incur high variable costs due to fuel expenses and other charges will soon able to sell electricity at a price of up to Rs 50 per unit on energy exchanges. The relaxation in norms by the Central Electricity Regulatory Commission (CERC) will provide relief to three category of power generating companies (gencos) -- those running their plants on expensive natural gas (RLNG), imported coal and using Battery Energy Storage System (BESS). At present, there is a price ceiling of Rs 12 per unit in the Day Ahead Market (DAM) on the energy exchanges. With the ceiling, gencos having high variable costs for operating their plants are generally not keen on selling electricity on the energy exchanges and this in turn results in stranded power generation capacity. Against this backdrop as well as the upcoming summer season, the CERC, earlier this month, allowed the introduction of a new segment -- High Price Day Ahead Market (HP-DAM) -- on the energy exchanges ...

Coal Secretary Amrit Lal Meena said all the coal companies of national miner Coal India (CIL) had more coal than their targeted production for the upcoming summer season

Domestic coal supply to be regulated for those not adhering to the directive

Total outstanding dues owed by electricity distribution companies (discoms) to power producers almost halved to Rs 62,681.68 crore in January, compared to Rs 1,21,030 crore in same month in 2022. Experts said this substantial reduction in the discoms' total outstanding is mainly due to various steps taken by the government, like implementation of late payment surcharge rules and providing facility of equated monthly installments (EMIs) to utilities. According to the portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators), the total outstanding dues of discoms stood at Rs 62,681.68 crore in January, 2023, which included Rs 25,526.42 crore overdue amount, that was not cleared even after 45 days of grace period offered by generators. In January 2022, the total outstanding dues of discoms stood at Rs 1,21,030 crore, which included the total overdue amount of Rs 1,01,357 crore. Power producers give 45 days to discoms t

The LPS Rules regulate access to power in case of non-payment of dues by discoms to gencos

But cumulative dues remain at a high of Rs 1.13 trillion

Power to be supplied for five years, qualifying gencos to get coal under SHAKTI scheme

Outstanding dues of electricity distribution companies (discoms) towards gecos, which remains over Rs 1 lakh crore at any point of time, will be eliminated in the next four years, Union power minister R K Singh said. The government has converted the total outstanding dues of discoms toward gencos (power generator companies) into Equated Monthly Installments (EMIs). These EMIs have maximum tenure of four years and thus the total outstanding dues of discoms would be nil by 2026. "The total outstanding dues of the discoms towards gencos is around Rs 1,13,000 crore. These dues would be totally cleared by 2026," Singh told PTI. Singh explained that the government has put a very robust payment security mechanism for the power sector knowing about the perennial issue of bulging dues of discoms toward gencos. He informed that the power ministry has put in place late payment fee Electricity, (Late Payment Surcharge and Related Matters) Rules, 2022 (LPS Rules 2022) which would trigger snapp

Power generating firms (gencos) have imported 92.07 lakh tonne of coal in April-June this financial year for blending purposes ahead of Monsoon season, Parliament was informed on Thursday. "Ministry of Power (in April) advised Central Gencos, State Gencos and Independent Power Producers (IPPs) to import coal for blending purpose during 2022-23," Union Power Minister RK Singh said in a written reply to the Lok Sabha. He also informed the House that to ensure minimum coal stocks in power plants before the onset of monsoon, the power ministry advised all Gencos to complete placement of awards for import of coal before May 31, 2022. In May, the ministry had stated that domestic coal would be allocated proportionately to all Gencos based on the likely availability of domestic coal from Coal India Ltd (CIL) /Singhareni Collieries Company Ltd (SCCL) from June 1, 2022, and the shortfall is to be met from blending of the imported coal. The reply showed that 92,07,000 tonnes of coal were ...

Apart from Adani, the other two names disclosed by CIL from its pre-bid meetings were contenders in the NTPC tender as well.

The government has directed the power generation companies (GENCOS) to buy rakes for captive usage, a move which will ensure smooth supplies of coal during the monsoon season

Two days ago, the company for the first time ever issued a tender for purchasing imported coal for gencos.

The imported coal would be supplied to state government-owned gencos and independent power producers (IPPs), 1.2 mt each

Replying to a question on the issue, the minister said "most of the states have started (the process), in fact every state has started."

GENCOS who either don't place their indents with CIL by 3.6.2022 or haven't initiated their tender processes of coal imports, will be allocated only 70% of domestic coal, said govt

Says stock available with power plants enough for 10 days of operation

Power producers give 45 days to discoms to pay bills for electricity supply. After that, outstanding dues become overdue and generators charge interest on that in most cases.

Imported coal price at nearly $380 per tonne, while power price is capped at Rs 12 per unit, say players