Power Minister Says 5.86 GW Coal, Lignite Based Thermal Projects Are Non-Operational

Projects of 5.86 GW out of the total 210.6 GW coal and lignite based thermal power generation capacities in the country are non-operational, Parliament was informed on Thursday.

"Out of 210.6 GW (coal and lignite based) monitored capacity of thermal power plants, 5.86 GW capacity is non-operational due to various reasons such as no Power Purchase Agreement (PPA), under National Company Law Tribunal (NCLT) etc," Power Minister R K Singh said in a written reply to Lok Sabha.

The minster also told the House that out of 5.86 GW (gigawatt) non-operational plants, one plant namely Bela Thermal Power Station (270 MW) was revived on October 2, 2022.

In another reply to the House, Singh said the weighted average rate of sale of power came down to Rs 3.40 per unit in 2020-21 from Rs 3.95 in 2019-20 and Rs 3.65 per unit in 2018-19.

Similarly, the average price of hydro power came down to Rs 2.64 per unit in 2020-21 from Rs 2.71 in 2019-20 and Rs 2.64 per unit in 2018-19.

The average price of nuclear power also come down to Rs 3.11 per unit in 2020-21 from Rs 3.14 in 2019-20 and Rs 3.36 per unit in 2018-19.

In another reply, the minister said co-firing of agro residue pellets with coal has started in 39 thermal power plants and cumulative biomass usage up to November 30, 2022 was 85,477 million metric tonne.

On October 8, 2021, Ministry of Power issued revised policy on biomass utilisation for power generation through co-firing in coal based power plants. This policy mandates the use of five biomass pellets made primarily of agro-residue along with coal in thermal power plants with effect from one year from the date of issuance of this policy.

The obligation to use biomass pellets in thermal power plants shall increase to 7 per cent with effect from two years after the date of issuance of this policy.