Cabinet approves GoM's recommendations on stressed power plants

The Union Cabinet Thursday approved recommendations of a group of ministers (GoM) relating to stressed power projects including the grant of coal linkage for short-term power purchase agreements (PPAs). The decision was taken by Cabinet Committee on Economic Affairs (CCEA).

Briefing reporters, Finance Minister Arun Jaitley said the recommendations approved include a grant of coal linkage for short-term PPAs, allowing existing coal linkage to be used in case of termination of PPAs due to payment default by distribution companies and procurement of bulk power by a modal agency against pre-declared linkages.