Centre to relook long-term power sale pacts between generators and states

Long-term power purchase agreements (PPAs) between generators and states could soon go away. The power ministry is planning to rework the PPA regime to address issues of states not honouring the pacts and, at times, reneging on the contract.
 
PPAs are typically of 25-30 years duration. The ministry is designing a policy paper to dwell on the alternative for long-term PPAs. The policy will also address the issue of cost escalation within the contractual clauses laid down by PPAs.
 
In his submission to the parliamentary standing committee on energy, the power ministry secretary said: “PPAs are a big