Electricity to all: No corner to be missed as 'Power Plants' comes to electrify firms

New Delhi, May 1: Electrifying performance by the government by imparting 100% electricity to the villages, India has grown fulfilling each and every promise made to the people. Moving a step ahead the electricity generating firms would now be able to sell power without binding pacts, as the Union government on Monday allowed procurement of power for three years under medium term from generators with commissioned projects but without Power Purchase Agreement (PPA).

 

The bid for this scheme will commence from the first week of May. The main purpose of the scheme is to provide a revive over the commissioned power plant which are not able to sell the electricity in the absence of valid power purchase agreements. These plants can bid for power supply under the scheme.

The State-owned Power Finance Commission has notified in the statement, "The government kicks off a Pilot Scheme for Procurement of Aggregate Power of 2,500 MW on competitive basis for 3 (three) years under medium term i.e. from generators with commissioned projects but without Power Purchase Agreement."

Power Ministry had recently issued the model bid documents, PAPP (Pilot Agreement for Procurement of Power) and PPSA (Pilot Power Supply Agreement) on April 6, 2018. The guideline for the said scheme was issued on April 10, 2018.

The PTC arm of Power Finance Commission has been appointed as the Nodal Agency and PTC India Limited as the Aggregator. The PTC India will sign three-year (mid-term) agreement for power procurement with successful bidders and Power Supply agreement with the Discoms (distribution companies).

Under the scheme a single entity can be allotted maximum capacity of 600 MW. The scheme assures a minimum off take of 55% of contracted capacity. The tariff will be fixed for three years without any escalation.