According to reports, around 28,000 MW of projects were given loans without fuel supply, power purchase deals during the earlier government´s tenure. The Mint newspaper reports that the NDA government has expressed concern in the way power projects were loaned money by banks without either a fuel supply agreement (FSA) from State-owned Coal India Ltd (CIL) or long-term power purchase agreement (PPA) with a distribution utility. These loans were given as per the earlier policy on the basis of letters of assurance (LoAs), which required approval by a panel headed by the Coal Ministry.
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