Independent Power Producers (IPPs) have flagged the revised Reserve Bank of India norms on debt for being too stringent.
An official statement after a meeting between Minister of State (Independent Charge) for Power and Renewable Energy, R K Singh, and the power producers said, “The RBI circular which lays down stringent provisioning norms on default of even one day in payment to the lenders, was raised by IPPs prominently, particularly in the context of delay in payment by DISCOMs, including non-payment of Late Payment Surcharge (LPS).”
Some of the IPPs raised concerns about delay in disposal of tariff petitions by regulators regarding compensatory tariff for increase in taxes, duties and cess levied by government. They also said the escalation index of CERC does not reflect the actual increase in coal prices and requested CERC to make a separate index for the power sector, the statement added.
The meeting discussed issues related to coal supply. Concerns related to implementation of new environmental norms and request for early clarification regarding pass-through of the consequential increase in the cost of generation were also raised.