The government will soon kick off pilot auction of medium-term power purchase agreements for 2,500 mw of electricity, ending a six-year long spell of state governments restricting electricity procurement from power plants.
The power ministry has already finalised the bid documents, model power purchase agreement (PPA) and model power supply agreement.
Bid coordinator Power Finance Consulting Ltd (PFCL) will soon invite expressions of interest while PTC India is likely to be the power demand aggregator for state distribution companies, a senior government official said.
Experts, however, said the proposed auction could result in higher tariffs to the states, as the auctioned power purchase agreements for three years will be signed with zero escalation clauses. Read More
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