India’s leading private power developers such as Cyrus Mistry (Tata), Anil Ambani (Reliance), Sudhir Mehta (Torrent), Manoj Gaur (Jaypee group) and GM Rao (GMR group), along with 17 other private developers and leading bankers, will meet union power minister Jyotiraditya Scindia on Tuesday to discuss major issues especially fuel constraints that are plaguing the sector.
The meeting is part of the advisory group constituted by the power ministry to “deliberate periodically issues pertaining to the power sector and suggest reforms in different areas.” There are 22 private power producers in the group.
According to Ashok Khurana, director general of Associated Power Producers’ Association of India, on the agenda are the availability of domestic coal for the power sector, measures to augment domestic coal production and the need for a coal pooling mechanism.
Power companies are struggling to ensure that 28,000 MW of existing and 38,000 MW of upcoming linkage coal-based generation capacity operates at optimal levels.
Khurana said the scarcity of domestic gas, which has rendered about 24,000 MW of gas-based power capacity inoperable and put at risk almost R1 lakh crore of investment, will also be discussed at the meeting.
“Since both the ministry of coal and ministry of petroleum and natural gas have expressed physical constraints on the availability of coal and natural gas, it is up to the power ministry to provide solutions,” he added.
The developers are likely to suggest that the National Tariff Policy of 2006 has outlived its utility, and needs a drastic overhaul to mainstream imported fuels such as coal and Liquefied Natural Gas.