Mechanism to revive power projects gets nod

The Cabinet Committee on Economic Affairs on Wednesday approved a mechanism to revive and improve utilisation of the stranded gas-based power generation capacity in the country.

This will improve the power supply to consumers and revive gas-based power projects worth Rs 60,000 crore lying idle. Out of 24,150 MW gas grid connected power generation capacity in the country, 14,305 MW of capacity has currently no supply of domestic gas and may be considered as stranded,” an official statement said after the CCEA meeting. It said due to this, an investment of over Rs 60,000 crore is at the threshold of becoming non performing assets, it said.

In order to revive these stranded gas-based plants, the mechanism envisages importing Regasified Liquified Natural Gas (RLNG) for supply to the idle plants so that they can generate power.

Meanwhile, the Cabinet also approved formation of a special purpose vehicle to provide efficient funding to port related railway projects at an initial capital of Rs 500 crore.

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