The Fact News Service

Emergency provision invoked to step up power generation

New Delhi, May 7

The Centre has invoked an emergency procedure under Section 11 of the Electricity Act to compel imported coal-based plants to begin generating power. In return, power producers have been allowed to pass on their costs to the consumers, something not allowed under the existing power purchase agreements (PPAs).

The government hopes that this will bring online 10,000 MW of power daily from imported coal plants, which have a total capacity of 17,600 MW. Already, 7,600 MW of capacity has been revived after the government allowed passing on of higher costs to consumers. The entire 17,600 MW capacity has been shut as the PPAs did not allow pass through of higher cost of imported coal, which has skyrocketed four times in the past one year.