The Union Power Ministry has amended rules to expand coal sources for power generation for export purposes and to help generating companies avoid losses in case of default by neighbouring countries.
Until now, exports of energy generated from coal purchased through electronic auctions, commercial mines and imports were permitted.
“Export of electricity from India by a generating company/distribution licensee directly or through a commercial licensee shall be permitted only if such electricity is generated using imported coal or electronic spot auction coal or coal obtained from commercial mining or from any other source as may be specified by the Government of India from time to time; Provided that such restrictions shall not apply to collective transactions through power exchanges in India,” the August 12 notification said.
The move comes at a time when demand for coal has been declining. On Tuesday, state-owned Coal India also decided to supply more coal to power plants than their annual contracted quantities (ACQ).
In another important move, the Power Ministry notification has allowed export-oriented power plants to sell their power within the country in case of default on payments under power purchase agreements (PPAs). Adani Power would be a key beneficiary of this relaxation of norms as it is the sole exclusive electricity supplier in crisis-hit Bangladesh.
Currently, the Adani Group’s 1,600 megawatt (MW) plant in Godda, Jharkhand, sells electricity exclusively to Bangladesh. The PPA for the power supply was signed between its subsidiary Adani Power (Jharkhand) and the Bangladesh Power Development Board (BPDB). The plant currently sources coal from Adani Group’s mines in Australia.
“Indian generating stations supplying electricity exclusively to neighbouring countries may be permitted to construct dedicated transmission lines for connection to the transmission system of neighbouring countries, taking into account technical and strategic considerations. Further, the Government of India may permit connection of such generating stations to the Indian grid (inter-state or intra-state) for facilitating sale of power within India in case of sustained non-compliance with scheduling of full or partial capacity or notice of default issued by the generator for any default including delayed payment under the PPA,” the notification said.
After Sheikh Hasina resigned as Bangladesh’s prime minister and the country entered further turmoil, Adani Power said: Mint BPDB is scheduling power supply to meet its demand and Adani Power continues to supply power to the Bangladesh utility without interruption. “From now on, we will be guided by BPDB’s schedule and as per the provisions of the PPA between the two utilities,” a company spokesperson said.
“The said amendment is merely a universal provision to enable such generating stations to get connectivity to the Indian grid and as such, it in no way imposes any financial or other obligation on the Government of India to purchase the power from such generating stations. By connecting such generating stations to the Indian grid, the overall availability of power on the grid will increase, thereby helping meet the growing demand for electricity across the country,” Adani Power said in a statement. Mint Check the latest notification.
Queries sent to the Ministry of Energy and the BPDB remained unanswered until the story was published.
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