The Union Power Ministry on 11th May 2022 has directed Power Finance Corporation (PFC) and Rural Electrification Corporation ( REC Ltd) to take necessary action to arrange short term loans for period of six months with adequate safeguards, for ICB plants which are under stress or in NCLT, at the earliest. These plants need working capital to buy coal and start generating power in order to restart their operations.
In view of increased demand and unprecedented pressure on domestic coal supplies, Ministry of Power, on 05.05.2022 issued directions to all imported Coal Based Plants (ICB) under Section 11 of the Electricity Act, 2003 to operate and generate power to their full capacity, even for projects which are stressed or under NCLT. These directions will ensure that additional electricity is produced through imported coal and will be a net addition.
To restart their operations, the ICB plants which are under stress or in NCLT need working capital to buy coal and start generating power. In view of the above, it is directed to take necessary action to arrange short term loans for a period of 6 months with adequate safeguards, for such plants at the earliest.
