The Power Ministry has issued directions under Section 11 of the Electricity Act, 2003 (“Direction”), mandating all imported coal-based generating power- plants (“Gencos”) to operate and generate at their full capacity. The Direction also mandates that where the relevant Genco is undergoing corporate insolvency resolution process (“CIRP”), under IBC, the resolution professional shall take steps to make such plants functional.
The direction is well-timed for dealing with the power shortage issue. The Direction also provides for mechanisms to ensure due and fair pricing of this power – with requirements for weekly payments from the purchasers, to ensure commercial viability.
Please click here to read the full article by Soumitra Majumdar and Utkarsh Bandhu, published in The Times of India.
Soumitra specializes in Banking & Finance. He works closely with Indian and multinational banks, development financial institutions, commodity finance houses, non banking finance companies as well as corporates, for structuring, due diligence, documentation and negotiations.