 "A worker is silhouetted against the setting sun while installing an overhead electric cable pole on the banks of river Ganges, Allahabad")
Bankers highlighted key issues in financing power projects at a recent meeting convened by the Union power ministry with states.
They said some issues were low plant load factor (PLF), which ranges between 58 per cent and 62 per cent, far short of the normative PLF of 85 per cent.
They also cited lack of long-term power purchase agreements (PPAs), fuel supply agreements and delays in acquisition of land and grant of environmental clearances.
Power ministry official said bankers pointed out that about 12,000 Mw of capacity was idling for want of long-term PPAs and another 12,400 Mw of projects were awaiting fuel supply.
A State Bank of India executive said stranded power projects could be picked up by stressed asset funds to collaborate with operating partners for revival. Taking over power projects is not a feasible option for banks.
“State-level issues will be soon taken up in the project monitoring group under the Prime Minister's Office (PMO),” the executive said.
A Maharashtra government official said the power ministry had assured bankers coal linkages without penalty would be auctioned soon. Besides, a mid-term bidding platform will also be launched.
The power ministry asked bankers to accept PPAs for seven years instead of 25 years and suggested only one PPA in place of three separate documents for imported coal, linkage coal and captive coal.
