The government of India is reportedly looking to relax lending norms for new coal-fired power stations as it aims to address the sharp increase in electricity demand. This move comes as France and the US propose a ban on private funding for coal at the upcoming COP-28 climate conference. Discussions within the power ministry suggest that the requirement for power purchase agreements (PPAs) with distribution companies for lending to new coal-based power stations may be eliminated to facilitate the flow of funds. The power minister, R K Singh, has emphasized the need to add an additional 30,000 MW of thermal generation capacity to avoid future electricity shortages. This would require an estimated investment of around Rs 2.5 lakh crore. The ministry’s plan to delink funding from PPAs aligns with its goal of gradually moving away from the PPA regime to make the power market more responsive and cost-effective.