Nearly 60,000 mw of thermal power projects in the IPP (independent power producers) segment are stressed mainly for want of long-term power purchase pacts and unavailability of domestic gas supplies, says a report. According to a report by rating agency Icra, the overall stressed thermal power generation assets remain a sizeable 60,000 mw. Of this about 26,000 mw are in trouble due to absence of long-term PPAs (power purchase agreements), about 12,000 mw are stranded due to non-availability of domestic gas supply and 22,000 mw due to unviable tariff in the PPAs and capital cost overrun. "As a result, the overall progress in signing of long-term PPAs through competitive bidding by state-owned discoms remains slow," it said. The agency said that the 26,000-mw capacity, which does not have long-term PPAs, remains exposed to price and volume risks in the short-term trading market.

Source: Economic Times November 23, 2017 16:07 UTC