Key Initiatives



Young in existence, having been formed in April 2010, APP however has a rich history of solid achievements in just a short period of time. Ever since its inception, the Association has effectively taken up with the concerned government agencies a range of issues relating to power sector such as: fuel - indigenous and imported; environment - impacting mines clearance and development; financing - taxes and levies that have a bearing on the sector and so forth. The Association provides crucial industry inputs to agencies concerned with the development of the power sector in India.

Some of the key issues which APP has brought up consistently in its representations to various Ministries and other government agencies are highlighted below: 

  • Domestic Coal Shortage (Linkage) and pricing impact of imported/blended coal
  • Delays in Captive Coal Production
  • Policy Framework for new Coal Block Allocation for Power Sector
  • Inadequate Supply of Gas to Power Sector
  • Infrastructure Augmentation for Coal Imports
  • Macroeconomic Risks arising out of adverse interest rate and exchange rate movements
  • Financing Issues
  • Deemed Export Benefits 
  • Land Acquisition
  • Stability of Policy and Sanctity of Government Decisions
  • Environment and Forest Clearances
  • Transmission Constraints
  • Incentives for Hydro Projects
  • Review of Standard Bidding Documents
  • Precarious Financial Condition of Distribution Utilities

Many of the issues highlighted above required extensive inter-Ministerial deliberations and as a result positive action was slow in forthcoming. Keeping in mind the criticality of the situation, especially the impact of the fuel shortage crisis on the power sector, APP decided to meet the Prime Minister, Shri Manmohan Singh to break the gridlock in the power sector. On 18th January 2012, a delegation of 18 members of APP comprising of the leading captains of the power industry led by Shri Ratan Tata met the Prime Minister and various other Ministers and senior Government officials to apprise them of the major difficulties facing the sector.

Key Initiatives
Key Initiatives

 

The Prime Minister promised the Association members of swift action in a time bound manner. During the meeting it was decided that a Committee of Secretaries, headed by Principal Secretary to the Prime Minister Pulok Chatterji, would be set up immediately to look into the problems highlighted. Soon after the meeting, the Committee met on 1st February 2012 and issued directions to Coal India to sign FSAs with power plants that have entered into long term PPAs. A review meeting with APP was held by PMO on 22nd February 2012 to identify other issues which required urgent intervention.

APP delegates met the newly appointed Union Minister of Power, Shri Veerappa Moily on 31st August 2012 to apprise him of the various issues affecting private investment in the power sector. The Power Minister agreed that the issues facing the power developers required immediate attention and he assured the delegation of expeditious resolution of the issues highlighted. A short while after Shri Jyotiraditya Madhavrao Scindia took charge as Minister of State (Independent Charge) for Power, APP delegates met him on 20th Dec 2012 to present an overview of the various challenges being faced by the power project developers. The discussions were centered around the major issue of fuel (coal and gas) shortage and associated issues. The Hon'ble Minister stressed on his commitment to resolve the problems of the sector and asked APP to submit a note on the major issues being faced. Ministry of Power set up an Advisory Group under the Chairmanship of the Minister of State for Power (Independent Charge) to discuss and deliberate periodically issues pertaining to the power sector and suggest reforms in different areas. APP is honored to be a part of this body and is represented by its Chairman/Vice Chairman in the meetings of the Advisory Group.