Pfc To Revive Old Thermal Plants In 8 States

Power Finance Corporation (PFC) has convened a meeting of eight power-starved states to finalise a programme for the renovation and modernisation of old thermal power plants.

The corporation proposes to implement its programme in Uttar Pradesh, Gujarat, Andhra Pradesh, Tamil Nadu, Punjab, Haryana, Madhya Pradesh and Maharashtra. It also plans to undertake a renovation and modernisation programme for the Damodar Valley Corporation.

The meeting has been convened due to fears that unless immediate remedial measures are taken, the already poor generation by old plants in these states could gradually come to a grinding halt.

Although PFC has offered to part-finance the project, the states are reluctant to proceed with it because of their inability to raise the required funds. Due to paucity of resources, the states prefer to sell or lease out these plants rather than finance their rejuvenation. Moreover, the current power shortages in these states do not give them the required leverage to shut down their plants for modernisation.

 

PFC, on the other hand, is of the opinion that the power situation in the country would become critical if the states do not modernise their plants. It has warned of plummeting plant load factors unless the renovation and modernisation plan is implemented.

The meeting, which will be held early next month, will finalise the vendors for the residual life assessment studies of the thermal power stations. These studies will evaluate the health of the plants both in mechanical terms and the condition of materials in the plant, and will also prioritise their requirements.

Power Finance Corporation sources said thermal power plants which are between 20 and 25 years old require immediate attention, failing which the supply from these stations would decline drastically over the coming years.