Delhi can't shut down power plant arbitrarily: Goyal

With Delhi deciding to shut down the Badarpur power station, union power minister Piyush Goyal on Friday said the state government is free to act within the framework of the power purchase agreement (PPA) and with proper planning.

The minister, however, said the Delhi government has not approached the union power ministry or himself on sorting out issues related to PPA for shutting down the Badarpur plant, which is one of the measures being contemplated to curb the rising pollution in the national capital.

''No one has talked to me on the issue. We will be delighted to support them (the Delhi government) but within the limits of the PPA,'' he said on Friday, stressing that they must honour the agreement.

The Delhi government has announced plans to shut down the two power plants in efforts to control the rising pollution level in the city.

However, power ministry sources said the state government must first sort out its islanding system to ensure power supply to the residents.

"It cannot shut down a power plant without proper planning," the minister said.

According to the information provided on the National Thermal Power Corporation (NTPC) website, Delhi is the sole beneficiary state of the plant, which has an installed capacity of 720 MW.

An expert said that besides the payment of fixed cost for shutting down the Badarpur plant, the Delhi government would have to sort out other issues like the plan of islanding of the capital region.

Under the scheme, which is to be completed, the national capital's power system will be isolated and not affected by a failure in the regional grid.

Mumbai has such system in place.

On acceptability of the UDAY scheme, meant for revival of debt stressed power distribution companies, Goyal said that most of the states will come on board by March next year.

As many as nine states, including Andhra Pradesh, Jharkhand, Rajasthan, Punjab and Jammu & Kashmir, have already communicated their willingness to join the scheme.

Expressing confidence about the revival of Indian economy, Goyal said that India will be bright spot in 2016 when most of the major economies facing serious challenges.