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32000 MW power projects in India shelved or delayed on coal uncertainty

Steel News - Published on Thu, 21 Jun 2012

The Indian Express reported that over 32,000 MW of upcoming coal fired thermal power generation capacity, almost 50% of capacity addition target in 12 Plan period, has either been shelved or simply put on hold by project developers until June this year.

Of this, an estimated 17,195 MW worth of capacity has been more or less shelved, while another 14,990 MW has been put on hold, with projects failing to achieve construction milestones, according to fresh estimates of stranded capacity prepared by the government.

With fuel proving elusive, developers are struggling to achieve financial closure, resulting in power projects being abandoned en masse.

With domestic coal in short supply, the environment ministry’s new norms, that require developers to submit details about the quality of coal they plan to use for their respective projects as a precondition to getting the green nod, have resulted in fresh hurdles for these projects, especially those looking to set up capacity based on imported coal.

The surge in projects being abandoned comes at a time when investor interest in the power sector is petering out fast, with lenders now starting to apply the brakes on funding of new private generation projects.

Source - Indian Express


Posted By : admin on Thu, 21 Jun 2012
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