No guaranteed offtake from private power projects

The power ministry’s proposal to provide mega power project developers guaranteed offtake by central power sector undertakings (CPSUs) has not found favour with the finance ministry or the public enterprises in the power sector. Although the ministry had drawn up a cabinet note and was hoping to provide this as a major risk mitigation measure for the power sector investors, strong objections raised by the finance ministry and the unwillingness of the central power companies to take on such high risks have raised hurdles in its path. Sources said that this policy would mean a back door entry of the guarantee regime. At a time when financial institutions and bankers are talking of providing debt to projects sans guarantees , a policy of thi.....