Power Producers Want 2 Year Extension to Cap Emissions
India’s power producers have sought another extension for capping toxic emissions from their plants, citing lack of bank funding and disruptions caused by the coronavirus pandemic, people with knowledge of the matter said. The plea for a delay reflects the the concern the slump in consumption may not recover quickly. Most of India’s coal-fired power producers have struggled to install the equipment, citing lack of funds. A nationwide lockdown to control the spread of the coronavirus has reduced demand for electricity and resulted in a cash squeeze at the generators, further eroding their creditworthiness. The lobby group, which counts Adani Power Ltd. and JSW Energy Ltd. among its members, said while order placements will be disrupted because of the pandemic, the bigger challenge was lack of funding, according to the people. Banks are also wary of funding the equipment, the people said. The group demanded the power regulator should issue a provisional tariff order for compensating the costs. State-run generator NTPC Ltd. has ordered equipment but it has also missed the 2019 deadline for its plants at the outskirts of the national capital. The ministry’s guidelines meant to contain the worsening air pollution in India’s cities that posed threat to human life. India was home to 14 of the world’s 20 most polluted cities until last year. Coal, which helps produce nearly 70% of India’s electricity, is seen as one of the main causes behind the country’s deadly air.
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