Professional Documents
Culture Documents
4-5 CR Per MW - The Financial Express
4-5 CR Per MW - The Financial Express
4-5 CR Per MW - The Financial Express
As many as 19 gigawatt (GW) capacity out of the 40 GW identified as stressed power assets can
participate in the second phase of the government's Scheme for Harnessing and Allocating Koyala
(coal) Transparently in India (SHAKTI) programme, according to Crisil.
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 1/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
As many as 19 gigawatt (GW) capacity out of the 40 GW identified as stressed power assets can
participate in the second phase of the government’s Scheme for Harnessing and Allocating Koyala
(coal) Transparently in India (SHAKTI) programme, according to Crisil. The Lok Sabha’s standing
committee on energy has identified 34 power plants with a cumulative capacity of 40 GW as
stressed assets due to lack of adequate fuel supply, absence of power purchase agreements
(PPAs), weak financials of promoters, among others.
“Our assessment of the 34 power plants suggests 19 GW of the 40 GW capacities do not have
medium or long term PPAs, and hence, can participate in SHAKTIII provided they meet other
eligibility criteria set by Coal India for participation in the auction,” the rating agency said in a note
Monday. However, it noted that successful bidders under SHAKTI-II may find it difficult to secure
long-term PPAs, given the high fixed cost of many of these projects.
A further 6.4 GW of untied capacity with overall investment of Rs 4-6 crore per MW have relatively
better chances of resolution if they manage to secure fuel supply at competitive rates, according to
the agency. “However, lack of fresh PPAs from discoms, and ambiguity over logistics costs which is
a deciding factor in overall cost of generation may impact the players’ ability to bid in auction as they
may still fail to sell power in the market due to high cost of generation on account higher landed cost
X
of linkage coal and lower preference in merit order dispatch,” it said.
Crisil further noted that of the 6.4 GW, only the 2.6 GW commissioned
Enter basiccapacity has a good chance
salary per annum Calculate
of resolution provided these plants secure linkage through SHAKTI-II and sign long-term PPAs,
Know your Income Tax Liability
while 3.8 GW of under-construction/partially commissioned capacity may find it difficult to get any
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 2/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
support from SHAKTI-II as these are unlikely to commission due to financial problems faced by
promoters.
The remaining around 2 GW of untied under-construction capacity may not commission at all,
according to the agency, given the over-supply in the system and suspension of work at site due to
lack of financing. “Consequently, we expect only 2.6 GW out of the estimated 19 GW of untied
stressed capacities eligible to participate in auctions under SHAKTI-II to benefit from the scheme
and get resolved,” it said.
In case of the remaining capacities, Crisil said lack of clarity over bidding parameters, scarcity of
fresh PPAs in the market and escalation in project costs will adversely impact resolution.
Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your
tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us
on Facebook and follow us on Twitter.
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 3/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
India’s first Mumbai-Ahmedabad bullet train to charge passengers for carrying extra
baggage! Details here
FinancialExpress
बक से िमलेगा दोगुना रटन! िसफ 30 िदन है मौका, िनवेश से पहले जान ल ये बात
FinancialExpress
Advertisement
makemytrip.com
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 4/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
1d 1w 1m 3m 6m 1yr 3yr
11,70
11,65
11,60
11,55
09:00 12:00 15:00
Advertisement
Advertisement
Those who
stay healthy
X
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 5/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
Father's Day gifts: OnePlus 7 Pro and more, here's what you can gift
your dad
BUDGET 2019
Budget 2019: Central govt to contribute 14% to NPS, employees to get
80C benefit on Tier-II deposits from April 1
Budget 2019: Hike in import duty may dampen the gold rush
X
Budget 2019: Healthcare sector expects hike in exemption limits for
health checkup, medical reimbursement
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 6/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
makemytrip.com
STAY CONNECTED
MOBILE APPS
MARKETS AUTOMOBILE
INDIA INSURANCE
SPORTS TECHNOLOGY
X
COMMODITIES JOBS AND EDUCATION
MONEY FE 360
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 7/8
7/18/2019 19 GW of stressed power assets eligible for SHAKTI-II: Crisil - The Financial Express
FE INSIGHT
MORE
TODAY'S PAPER
EPAPER
GALLERY
HOROSCOPE
VIDEO
ARCHIVE
INDIAN EXPRESS GROUP THE INDIAN EXPRESS LOKSATTA JANSATTA INUTH RAMNATH GOENKA AWARDS IE TAMIL
IE MALAYALAM IE BANGLA
Copyright ©2019 The Indian Express [P] Ltd. All Rights Reserved
https://www.financialexpress.com/industry/19-gw-of-stressed-power-assets-eligible-for-shakti-ii-crisil/1379763/ 8/8