PTC India to ink medium term PPAs for 1900MW capacities under Govt's pilot scheme

Power trading solutions provider PTC India would ink medium-term power purchase pacts for 1,900 MW coal-based power capacities in the next one month under a pilot scheme launched earlier this year, an official said.

The power purchase agreements (PPA) would help revive stressed commissioned power plants that do not have such pacts. PPAs are required for getting fuel supplies.

"PTC India has finalised bids of 1,900 MW capacities at a tariff of Rs 4.24 per unit including the nominal fixed cost of one paise per unit for supply of power for the medium term of three years. The power purchase agreement for these capacities would be inked in a month's time ahead of festival season," a power ministry official told PTI on the condition of anonymity.

The official said, "There would be no escalation of tariff during the three-year period on any account. The discoms can reduce load up to 55 per cent of agreed capacity."
Elaborating further he said, "If the supply capacity goes down beyond 55 per cent then the differential power would sold in open market and any under-recovery would be charged to discom. But if that power is sold at a premium, the profit would be divided equally between discom and generating firm."
The official said, "In view of rising coal prices in the international market, the imported coal-based commissioned power plants may face some issues during another round of bidding. The government has planned to auction 5,000 MW under this scheme to revive stressed commissioned power plants without having power purchase agreements (PPAs) this fiscal. Thus there would another round of bidding for around 2,500 MW capacities by March this year."