Govt orders imported coal-based plants to generate power at full capacity

Section 11 of the Electricity Act gives the government the authority to order any generating company to operate and maintain its stations in accordance with the order

In order to manage the rising power crisis in the country, the government has invoked Section 11 of the Electricity Act, asking all imported coal-based projects to generate electricity, an Economic Times report said.

This order will bring on stream at least 7 GW power plants of Essar Power, Coastal Energen in states such as Gujarat, Andhra Pradesh and Tamil Nadu and it will also apply to the plants under the National Company Law Tribunal. The order will also help restart non-operational units of Adani Power and Tata Power, says the report.

India has 17,600-MW imported coal plants, however, only 10,000 MW are operating due to the lack of compensation for the high imported coal prices, the report said.

Section 11 of the Electricity Act gives the government the authority, in extraordinary circumstances, to order any generating company to operate and maintain its stations in accordance with the order.

These plants will supply power to power purchase agreement holders. Any surplus power shall be sold in the power exchange.

"With this order, any state including Gujarat and Rajasthan can buy power from exchanges while the commercial issues can be resolved later. This will help in increasing electricity availability in the country," a senior government official said.

The tariffs of the projects operating on high-cost imported coal will be worked out by a committee constituted by the ministry of power, the Central Electricity Authority, and the Central Electricity Regulatory Commission.