In order to bridge the gap between demand and supply, especially in the context of limited financial resources available, it has become imperative to look for other options which are not as capital intensive as new capacity addition and which could be implemented in a comparatively shorter time frame. In this regard, optimum utilisation of existing installed capacity in the country to maximise the generation through Renovation & Modernisation (R&M) of existing power plants is considered to be the most cost effective option.
The importance of R&M was recognised by the Government of India way back in 1984 when PHASE-I R&M Programme for 34 thermal power stations in the country was launched by the Central Electricity Authority as a Centrally Sponsored Scheme.
The Government of India has now accorded high priority to R&M and Life Extension (LE) of old existing power plants. The funds in the form of loan assistance at concessional interest rates are being provided by the Government through Power Finance Corporation (PFC) for R&M works
