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Cabinet gives nod to GoM's recommendations on stressed power plants

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Dion Global

07 Mar 2019

The Union Cabinet Thursday approved recommendations of a group of ministers (GoM) relating to stressed power projects including grant of coal linkage for short-term power purchase agreements (PPAs).

The decision was taken by Cabinet Committee on Economic Affairs (CCEA).

Briefing reporters, Finance Minister Arun Jaitley said the recommendations approved include grant of coal linkage for short-term PPAs, allowing existing coal linkage to be used in case of termination of PPAs due to payment default by distribution companies and procurement of bulk power by a modal agency against pre-declared linkages.

Central/state generation companies may act as aggregator of power.