Budget 2024: Hi-tech thermal plants may get Rs 6,000 cr viability support
coal-based power plants through the newest Advanced Ultra Supercritical (AUSC) technology.
A proposal to offer about ₹6,000 crore viability gap funding (VGF) mooted by the heavy industries ministry is being evaluated by the finance ministry, people familiar with the development told ET.
A ₹3,500 crore payment security mechanism for electric buses is also being considered, they said, adding that a final call would be taken closer to the budget.
The proposed project will be based on indigenous technology developed through a consortium of Bharat Heavy Electricals Limited, Indira Gandhi Centre for Atomic Research and NTPC. The central government has spent ₹1,554 crore on developing the technology.
«Advanced Ultra Supercritical projects are more expensive than conventional coal-based projects. A VGF is needed for keeping tariffs from these newer projects in tandem with existing ones so that power purchase agreements with state government-controlled distribution companies can be secured comfortably,» said a senior government official, who did not wish to be identified. Sector watchers said the new project would cost well upwards of ₹15,000 crore at completion. The Centre last week announced VGF for 1 GW of the country's first offshore wind energy projects, which were recently approved for development. Last week the Union cabinet approved VGF of ₹7,453 crore for the wind project to keep power tariffs below ₹4.5 per unit, roughly the average cost of electricity supply from the country's thermal plants.India currently
