To deal with stressed power assets, the Centre has decided to pursue state governments to have an assured demand and make timely payment to power generation companies.

“(The) Centre is going to pursue the state governments to ensure timely payment to power generation companies. We are in discussion with states for assured power demand. We are also thinking about several measures to revive stalled projects in the short term,” said a senior government official on the condition of anonymity after the second meeting of the High Level Empowered Committee (HLEC) on Friday.

The HLEC, which is chaired by Cabinet Secretary P K Sinha, is scheduled to submit its report by September 29. The Committee was formed on July 29 to resolve the issues ailing the stressed thermal power assets in the country. “Power generation companies have been complaining for a long time that the state distribution companies do not buy required power as signed under the power purchase agreement (PPA). Even when they buy power, distribution companies do not make their payments on time. States need to honour the PPAs and it is a major issue ailing the power companies,” added the official.