Power producers have asked the government to rope in Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to provide funds for implementing emission control systems (ECS) in thermal power plants. Banks and financial institutions have expressed reluctance to fund, citing the prevalent stress in the sector and exhaustion of their lending limits to the power sector.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

They have also indicated that the environment norms were notified after the commissioning of the plants, and therefore, were not part of the earlier approved financing plans. Thermal Power Plants (TPPs) are required to install and upgrade various ECS as per the phasing plan finalised by Central Electricity Authority (CEA) to comply with the environment norms notified by the environment ministry on December 7, 2015.

Association of Power Producers (APP) in its missive to the power secretary Ajay Kumar Bhalla on October 11 has said as per the estimates by CEA additional financing worth Rs 500 crore will be needed for a 1,000 megawatt plant for the installation of ECS.

However, banks and financial institutions have asked thermal power plant operators to approach the power and environment ministries to seek equity or alternatively soft loan.

Watch This Zee Business Video Here:

APP director general Ashok Khurana told DNA Money, ‘’In view of the criticality of the matter, the power ministry has been requested to take up the issue with REC and PFC to see if they can be designated for funding the debt component of this proposed expenditure, or alternatively to convince the banks to ease restrictions of lending for the installation of ECS.’’