New Delhi, Mar 7 (IANS): The Union Cabinet on Thursday approved the recommendations of a Group of Ministers (GoM) on revival of stressed power projects, including the grant of coal linkage for short-term power purchase agreements (PPAs).

The GoM was constituted to examine the specific recommendations of a High Level Empowered Committee (HLEC) formed earlier to address the issues of stressed thermal power projects, an official statement said.

The recommendations approved include those related to "grant of linkage coal for short-term PPAs, allowed existing coal linkage to be used in case of termination of PPAs due to payment default by DISCOMs (distribution companies), procurement of bulk power by a nodal agency against pre-declared linkages", among others.

As per the recommendations, Central and state power generation companies may act as an aggregator of power.

The approved recommendations also include an increase in quantity coal for special forward e-auction for the power sector, coal linkage auctions in regular intervals, non-lapsing of short supplies of coal and mandatory payment of Late Payment Surcharge (LPS).

The HLEC under the chairmanship of the Cabinet Secretary submitted its report last November.