NEWS & UPDATES

Weekly Power Sector Round up: 31st August 2019

Centre forms panel on Power reforms

The Centre has formed a high-level group to make recommendations for changing the structure and system of power sale and purchase in India.

Special Power secretary Sanjiv Nandan Sahai will lead the group, which will make recommendations regarding the changes needed in Power Purchase Agreements (PPAs).


Well-developed power sector prerequisite for development on N-E states: R. K. Singh

Speaking at the meeting of Chief Secretaries and Principal Secretaries of Power of North Eastern states, Minister of Power R. K. Singh emphasises that the development of NE India is a priority of the union government and a well-developed power sector is a prerequisite for the economic development in these states.

He urged the states to avoid power theft by adopting smart and prepaid meters saying, “concerted efforts will have to be made to make the system sustainable. In order to redeem our pledge for 24/7 power, we will have to reduce the losses and make the DISCOMs viable.”


Cabinet allows 100% FDI in coal mining via automatic route

100% Foreign Direct Investment (FDI) through automatic route in coal mining and related activities was approved by the Cabinet Committee on Economic Affairs (CCEA) on the 28th of August2019.

The official statement reads, “It has been decided to permit 100 per cent FDI under automatic route for sale of coal, for coal mining activities including associated processing infrastructure subject to provisions of Coal Mines Act, 2015 and the Mines and Minerals Act, 1957.”


IBC can’t resolve power sector crisis, but ARCs can: Secretary SC Garg

Asset Reconstruction Companies (ARCs) would be better at dealing with financially crippled power companies rather than under the provisions of existing bankruptcy laws, according to Power Secretary SC Garg.

An asset sent to NCLT (National Company Law Tribunal) results in crucial agreements on power purchase and fuel supply coming apart, leaving only the plant and machinery which results in putting off new buyers, he said.