The body has also sought dedicated allocation or auction of gas for power sector and inclusion of natural gas under goods and services tax (GST) regime to maintain 5 percent tax across the country.
According to the letter, several IPPs which supply power to the state through Madhya Pradesh Power Management Company Ltd (MPPMCL) have been facing "arbitrary and discrimination action with regard to payment of capacity charges by MPPMCL".
APP has also written a similar letter to Coal Minister Pralhad Joshi explaining the requirement for this supplier's credit.
In a letter to power secretary Ajay Kumar Bhalla, the Association of Power Producers Friday said delay in recovery of receivables, especially regulatory receivables, has created stress on their finances as it impacts their ability to service debt and severely restricts working capital liquidity.
Ashok Khurana, Director-General, Association of Power Producers says the power sector needs an immediate solution amidst the collapsing demand since past three years.
Ashok Khurana, Director-General, Association of Power Producers is hopeful that the company will re-draft the agreement and make it more equitable and ensure greater transparency
Power Minister Jyotiraditya Scindia is discussing within the Ministry the recent proposals submitted by the private power producers to address fuel supply issues as well as to revive the crisis-hit sector.
The government has approved a bailout package for the cash-strapped discoms and Ashok Khurana, Director General, Association of Power Producers (APP) believes the government has taken a very wholistic approach this time.
Ashok Khurana, director, Association of Power Producers (APP) explains to CNBC-TV18, that the duty on import of power equipment might be a bit late to save the power sector which is tottering under the pressure of high fuel prices and lack of investor interest.
Ashok Kumar Khurana, Director General of the Association of Power Producers tells CNBC-TV18 that gas pooling is the only viable option to save gas based capacity.
Close to 50 power projects, being developed in the country by various private players at a staggering cost of about Rs 3.42 lakh crore, could face the risk of default if immediate steps are not taken to address issues like fuel shortages and environmental hurdles.
Ashok Kumar Khurana from the Association of Power Producers tells CNBC-TV18 that the government should aim to keep power costs low so that it is affordable for everyone.
The Power Ministry's proposal to levy a 19% import duty on power project equipment is expected to be taken up by the Cabinet Committee of Economic Affairs this Thursday.
Top executives from India's major power companies will meet Prime Minister Manmohan Singh on Wednesday to push for swifter action to improve access to coal and make it easier to get funding, acquire land and get environmental clearances.
The Association of Power Producers (APP) has written to Finance Minister regarding the import duty on power equipments. CNBC-TV18's Mehak Kasbekar reports.
The Association of Power Producers (APP), a trade body that represents 90% of private power companies has appealed against levying customs and import duty on power equipment.
The Association of Power Producers has petitioned to Planning Commission and power ministry over concerns that 80% of the country's power plants are likely to default on the back of coal shortage.
Private power producers are worried over the rising coal deficit and are sounding the warning bells over the fate of as much as 21,000 mw of planned capacity addition in the current fiscal. CNBC-TV18's Mehak Kasbekar delves deeper to know why the power producers are breaking into a cold sweat.