According to a report released by the Institute for Energy Economics and Financial Analysis (IEEFA), ‘Seriously stressed and stranded: The burden of non-performing assets in India’s thermal power sector’, 12 stations are non-performing and many more are headed into the same territory.
Earlier in 2018, the Standing Committee had identified 34 projects as stranded or non-performing assets. This report highlights ‘questionable economics’ behind the way these projects are operating, from their current investment proposals to the heavy costs involved - in terms of coal used and outdated technology.
It also highlights how cost-effective, renewable sources for energy can be used at 30% lower cost to Indian electricity consumers.
What you should know -
India’s power generation mechanisms
Thermal power stations in India
Thermal power vs Hydro power generation in India