By Mitul Thakkar:
In view of the weak financial conditions of the electricity distribution companies, the Ministry of New and Renewable Energy (MNRE) is trying ensure timely payments to the renewable energy project developers. It is already started discussions with the SERCs to figure out the modalities and soon going to write them to ensure first priority to the renewable power producers when it comes to payments.
Meanwhile, the ministry also plans to float new venture to promote electricity generation from biomass on the lines of recently formed Solar Power Corporation of India.
“It has come our notice that renewable project developers are not able to get their payments in time from the cash strapped state utilities. It is discouraging for small investors in environment friendly projects when we are aiming to achieve ambitious targets. Only couple of state utilities are paying renewable project developers in time and there should be legal framework in place to ensure timely payments to the investors,” Tarun Kumar, joint secretary of MNRE told ET on Thursday… Read more