Reeling below a liquidity crunch, impartial energy producers (IPPs) within the nation are in search of liquidity window by means of a particular line of credit score by the Energy Finance Company to energy distribution corporations (discoms) to clear their excellent energy payments of ₹50,000 crore as much as March 31, 2020.
This, for the reason that IPPs should not have funds to purchase coal or pay freight expenses. As soon as the coal shares on the crops deplete, they could don’t have any different possibility however to close down the plant until their liquidity scenario improves. The Affiliation of Energy Producers (APP) has written to the federal government in search of the liquidity window by means of a particular line of credit score by PFC/REC for discoms to clear their excellent energy payments of round ₹50,000 crore as much as March 3, 2020.
APP’s letter to Raj Kumar Singh, the Minister for Energy, New & Renewable Vitality, Talent Growth and Entrepreneurship, has additionally sought to request the Coal Ministry and Railways for deferment of advance cost for coal and railway freight by means of suppliers’ credit score.
This comes at a time when the income assortment by discoms has fallen by as a lot as 80%, and funds to turbines have additionally crashed correspondingly because of the antagonistic influence of the COVID-19 pandemic.
Looking for particular dispensation for the ability sector, APP director normal Ashok Khurana stated, “With the lockdown restrictions persevering with in lots of elements of the nation and virus infections nonetheless on the rise, it’s apprehended that income assortment figures of Could could also be worse than in April. Many turbines have now reached a stage the place they don’t have cash to purchase coal, or pay salaries or pay for transport and LTA expenses.”