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Centre asks Power Producers to run at full capacity to meet power demand

Keeping in view the increasing power demand, the Minister emphasized the need for making certain that the entire established power generation capacity is utilized.

The Statesman Desk | New Delhi |

Union Power Minister R K Singh on Friday asked Power Producers to utilize run at full power generation capacity in wake of increasing power demand.

In a review meeting with the Association of Power Producers, he told them that the government has agreed to open three windows of coal auction so as power plants have a smooth and steady supply of coal.

Keeping in view the increasing power demand, the Minister emphasized the need for making certain that the entire established power generation capacity is utilized.

He directed his ministry officials to streamline and simplify guidelines/procedures for short term coal linkage auctions under SHAKTI B.

Further to make coal available for a longer period, the Power Minister said the government would also examine whether the duration of the auction can be extended for more than one year. It is also examining the issue of the Bank Guarantee to be extended beyond one year.

The Minister assured the APP that government would sympathetically consider their demand of the extension timeline in view of lack of PPAs (Power Purchase Agreements) in the market, and decrease in Bank Guarantee amount.

The power producers had also asked for a separate window for the auction of gas for power plants so as it could continue to generate power. The Minister assured them that the matter would be taken up with Petroleum Ministry to address the issue.