Power producers will now be able to insure their receivables against non-payment of payments due as the insurance sector is open to offering credit insurance cover on the sale of power to third corporate parties.
Retail sale of power under the Electricity Bill 2001 will open floodgates for power producers. Risk covers will help companies access cheaper funds and achieve financial closure on the back of assured receivables.
All this, however, hinges on the passing of the Bill, which proposes that power producers can sell power directly to a corporate using the power grid by paying wheeling charges.
