NEW DELHI: The power ministry has allowed independent power producers (IPPs) burning imported coal to pass on the higher fuel costs till December with a view to restarting stalled capacity as domestic coal-based generation stations across the country struggle to cope with rising demand because of low fuel inventories, sources said.
The decision, taken at a meeting last week to take stock of the power situation, is expected to switch on 7,980 MW of imported coal-based generation capacity of Tata Power, Adani Power, Essar Power, ILF&S Tamil Nadu, Coastal Energen, Udupi Power and GSECL Sika Ltd. Most of the capacity was shut primarily after consumer states refused to pay for the rise in global coal prices.
