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APP urges govt to bail out stranded power projects

January 3: The Association of Power Producers (APP), the apex body of Independent Power Producers (IPPs) in India, has urged the government to offer a restructuring package to stranded power projects facing viability challenges due to "factors beyond the control of the developers".

"It is understood that there are as many as 19 petitions already pending with the Central and state regulators seeking relief from adverse circumstances," a senior official of the association said.

These projects are either not granted coal linkages by Coal India Ltd (CIL) due to non-signing of power purchase agreements (which is not under their control), or denied statutory clearances for captive blocks, he said.

"Many projects are at an advanced stage of commissioning but are unable to proceed…. Therefore, APP has suggested to the government that the immediate need of the hour is to provide a restructuring package to power generators, similar to the Financial Restructuring Plan offered to ailing power distribution companies, which may include measures such as a moratorium on repayment of interest and capital and shifting of the debt repayment period without classification as NPA, etc," he added.