Government considers financial relief to restart 16,000 Mw gas-based power plants.

The government is considering financial relief for about 16,000 MW of stranded gas-based power plants by way of lower interest rates and extension of loan tenures, a senior official has told ET.

According to the official, the ministries of power, finance and oil are working on various proposals that include lowering interest rates to base levels or even lower, extending loan repayment period to about 25 years from 10 years and allowing these plants to capitalise losses over a certain period after the start of commercial operations.

Companies such as Reliance Power, Essar Power, GMR Energy, Lanco Infratech and GVK Group will benefit if the proposals are accepted.


ET