The Association of Power Producers on Friday wrote to the Power Ministry asking for a task force to be set up for undertaking a thorough review of legislations governing electricity generation. The letter was sent to Piyush Goyal Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy.
The association claims that 10 out of 46 key legislations governing the sector haven’t been amended in the last 50 years which meant 90 key approvals during construction phase and 53 approvals during operations phase are required.
“As a result of the high number of approvals/clearances involved during the construction stage developers face inordinate delays. This in turn increases the interest rates during construction period and cost adversely affects the project viability,” the association wrote in its letter.
Apart from the delays due to a large number of approvals, the association also said that 1,110 out of 1,982 compliances can attract imprisonment on account of non-compliance. The association asked for a review of such legislations to help improve the current scenario.
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