The move is a step towards the government's intention to shift India's electricity trading from long-term (25 years) power purchase agreements (PPAs) to electricity markets (exchanges) and shorter PPAs of up to 12-15 years. It also means the government has revived its plan to introduce Market-Based Economic Dispatch (MBED) mechanism in India.
A total of 8,000 MW of thermal capacities in India are without any power purchase agreements, Singh, who is also the Minister for New and Renewable Energy, told PTI.
The decision was taken by Cabinet Committee on Economic Affairs (CCEA).
Coal India, which accounts for 80 percent of domestic coal output, raised its production by 7 percent in the financial year ending March 31 2015, and by a further 9.4 percent in the first five months of the current financial year.
Dole says losing Mandakini block is a sentiment deterrent for Adani Power, but the Jitpur block should help Adani Power tie up coal for its Korba plant
In less than a week, auctions of 11 blocks for the power sector have netted around Rs 60,000 crore. In all, 204 coal blocks will be auctioned in a phased manner, following the Supreme Court‘s order canceling the earlier allocations.
Power companies like Adani Power and Tata Power will soon find out just how much compensation they can charge distribution companies for supplying power produced from costlier imported coal; with the CERC ready to deliver its verdict in the case soon
Power sector regulator CERC is expected to shortly finalise the orders on petitions moved by Tatas and Adanis seeking higher tariff for electricity generated from their imported coal-fired projects in Gujarat.
"Power stocks are underperforming due to routine profit booking," says Harshavardhan Dole, analyst, IIFL in an interview to CNBC-TV18. Dole expects the power sector to perform well over the 6-12 months, as the sector heads into recovery.
YD Murthy, executive VP - finance, Nagarjuna Construction Co explains to CNBC-TV18 that the company plans to post a top-line growth of 15% amidst improvement in debt-collection and participating in bids for PPAs from Andhra Pradesh, Tamil Nadu and Karnataka.
State-run DVC on Thursday said it may have to stop power supply to Delhi, as the two distribution companies BSES Rajdhani Power and BSES Yamuna Power are yet to make outstanding payments to the company.
The shortage of fuel availability is the main problem faced by power producers, say experts.