August 26, 2013

In an attempt to accelerate big-ticket investment in the infrastructure sector, a ministerial panel is expected to clear bottlenecks in installation of 28 power projects involving investment of around Rs 174,000 crore. These power projects are waiting for clearances, including assured fuel supply.

The projects include 18 power plants worth around Rs 82,000 crore which are stuck owing to lack of Fuel Supply Agreements (FSAs). The ministerial panel will also take up another 10 power projects, in which investments worth Rs 92,000 crore have been stuck for various reasons, including pending coal linkages and environment clearances.

The government had asked state-owned Coal India Limited (CIL) to sign FSAs with power producers for 78,000 mw capacity which are to be commissioned by March 2015 through a presidential directive issued last month.

The government had targeted to add power capacity of 78,700 mw during the 11th five-year plan (2007-12), but managed to add just 54,964 mw, almost 70% of the target. The target for the 12th plan (2012-13 to 2016-17) is to add around 80,000 mw of power capacity.