Relinquished coal plants may be allowed to sell power
POWER & RENEWABLE ENERGY

Relinquished coal plants may be allowed to sell power

The power ministry proposes to allow coal-fired power plants to sell after finishing their agreements with their buyers. This is despite the national promise to close old plants to control pollution. The Ministry said that the draft proposal, if approved, will help in generating additional revenue and increase liquidity in power markets and distribution companies in states facing a power shortage to access cheaper power.

The letters sent to the power departments of the country's states and utilities such as National Thermal Power Corporation Limited (NTPC) have said that the tariff of electricity must be as low as possible for customer interest.

The Ministry said the move would help government-run generators to sell power in any mode once the company upon completion of the tenure exits the agreement.

Previously, Power Minister RK Singh and Finance Minister Nirmala Sitharaman planned on shutting down old coal-fired power plants. An official has mentioned cost-effective utilities that are known to provide cheap power, will be allowed to operate, whereas inefficient plants would be shut down.

After the plants complete 25 years, distribution companies operating in Punjab, Delhi, Andhra Pradesh, and Odisha want to surrender power allocated by federal government-run utilities, said the power ministry.

The availability of excess power and high cost of electricity were the reasons cited by the states to surrender power under the agreements.

The power ministry compiled a list in 2019 that shows that the distribution companies wanted to surrender power generated from utilities with a capacity of 5.75 GW.

Image source

The power ministry proposes to allow coal-fired power plants to sell after finishing their agreements with their buyers. This is despite the national promise to close old plants to control pollution. The Ministry said that the draft proposal, if approved, will help in generating additional revenue and increase liquidity in power markets and distribution companies in states facing a power shortage to access cheaper power. The letters sent to the power departments of the country's states and utilities such as National Thermal Power Corporation Limited (NTPC) have said that the tariff of electricity must be as low as possible for customer interest. The Ministry said the move would help government-run generators to sell power in any mode once the company upon completion of the tenure exits the agreement. Previously, Power Minister RK Singh and Finance Minister Nirmala Sitharaman planned on shutting down old coal-fired power plants. An official has mentioned cost-effective utilities that are known to provide cheap power, will be allowed to operate, whereas inefficient plants would be shut down. After the plants complete 25 years, distribution companies operating in Punjab, Delhi, Andhra Pradesh, and Odisha want to surrender power allocated by federal government-run utilities, said the power ministry. The availability of excess power and high cost of electricity were the reasons cited by the states to surrender power under the agreements. The power ministry compiled a list in 2019 that shows that the distribution companies wanted to surrender power generated from utilities with a capacity of 5.75 GW. Image source

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?