India: Stranded coal, gas and hydro power projects - causes and solutions

Last Modified: Wed Jan 24 2018 19:57:34 GMT+0530 (India Standard Time)
  • 17
    coal based power projects aggregating to a capacity of 18,420 MW.
  • 17
    gas-based power projects aggregating to a capacity of 11,154 MW. (Click/Tap for details)
  • 20
    hydroelectric projects aggregating to a capacity of 6,329 MW. (Click/Tap for details)
  • Rs. 1.90 lakh crore
    Estimated debt of the 54 (17 coal + 17 gas + 20 hydro) projects based on conservative estimates of Rs 5 crore per MW for thermal projects and Rs 7 crore per MW for hydro.
  • 4
    Primary reasons why the projects are stalled:
  • #1
    Non-availability of regular fuel supply arrangements.
  • #2
    Lack of Power Purchase Agreement (PPA) tie-ups - 25 mega power projects (1,000+ MW) without PPAs as they are unable to find buyers for their capacity in the current surplus market condition.
  • #3
    Inability of the Promoter to infuse the equity and service debt.
  • #4
    Regulatory and Contractual issues.
  • 7
    Key steps taken by Ministry of Power to resolve the situation:
  • #1
    Launch of SHAKTI scheme, to ensure grant of regular coal linkages to the stranded and all other operational projects.
  • #2
    Ujwal DISCOM Assurance Yojana (UDAY) scheme for Financial and Operational Turnaround of power distribution utilities (DISCOMs) of the country.
  • #3
    Power For All (PFA) initiative with States and UTs for bringing uninterrupted quality of power to each household, industry, commercial business, small & medium enterprise and establishment.
  • #4
    Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for Rural Electrification.
  • #5
    Integrated Power Development Scheme (IPDS) for strengthening of sub-transmission and distribution networks in the urban areas; Metering of distribution transformers / feeders / consumers in the urban areas and IT enablement of distribution sector.
  • #6
    Augmenting Transmission capacity to remove transmission constraints.
  • #7
    Flexibility in utilization of domestic coal for reducing the cost of power generation.