Coal and Power Minister Piyush Goyal giving sigh of relief to the stressed power plants has said that the government is looking at seeding a 'power fund' with support from international investors to pick up stressed assets for revival.
The minister further stated that a lot of international investors have shown interest in investing in India and added that a good corpus could be created by roping in international companies and the Centre could acquire the stressed assets in a very attractive manner. He said the fund could pick up stressed power plants and revive them. Goyal has however said that the problems faced by power sector were being exaggerated.
The Minister added that a self-hedging mechanism to allow foreign investors of solar power projects to get dollar tariffs is being worked out. Under the mechanism, distribution utilities quote their price (the rate at which they will buy from the generator) in dollars for 25-year contracts, but the end consumer will be sold the electricity in rupees.
The Minister also indicated that by raising the coal cess four-fold over the last year to Rs 200 per tonne, a huge sum of around Rs 30,500 crore is likely to be generated this year. Proceeds from the coal cess will go to the National Clean Energy Fund. He added that steps were on to augment Coal India production and 60 new mines were on the anvil.
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