In a significant move to boost the Indian power sector, the Indian government has announced the lifting of the mandatory requirement of ALMM for thermal power plants commissioned by March 2024. The decision is expected to reduce the cost of power generation and encourage investment in the sector.
The ALMM, which was introduced in 2018, required all new thermal power plants to ensure the availability of fuel and signed power purchase agreements (PPAs) before they could be commissioned. The mandate was aimed at ensuring the timely completion of projects and reducing the risk of power shortages.
However, the mandate had become a major hurdle for many power projects, as securing fuel supply and signing PPAs could take several years. The lifting of the mandate is expected to speed up the commissioning of thermal power plants and reduce the cost of power generation, which will benefit both consumers and power producers.
The decision was announced by the Union Minister of Power and New & Renewable Energy, R.K. Singh, who said, “The government has decided to lift the ALMM requirement for thermal power plants commissioned by March 2024. This will help speed up the commissioning of power projects and reduce the cost of power generation, which will benefit consumers and power producers.”
The government’s decision is expected to encourage investment in the power sector and boost economic growth in the country. The Indian power sector has been facing several challenges, including fuel shortages, delayed projects, and high tariffs, which have impacted the availability and affordability of electricity.
The lifting of the ALMM mandate is expected to provide a much-needed boost to the power sector and help India achieve its goal of providing 24×7 power supply to all households. The government is also promoting the development of renewable energy projects to reduce the country’s dependence on fossil fuels and mitigate the impact of climate change.