PFC ties up PTC India to buy power from stranded power plants

State-run PFC arm PFC Consulting (PFCCL) has inked a pact with PTC India for supply of power from commissioned coal-based thermal power projects stranded due to non-finalisation of power purchase agreement (PPA).

The PFCCL entered into a memorandum of understanding (MoU) with PTC India for jointly exploring opportunities for procurement of power from coal-based commissioned thermal power projects for supply to discoms and facilitate signing of PPAs, a PFC statement said.

Yesterday, Power Minister R K Singh had tweeted: "Government to conduct auctions next month for power plants that do not have power purchase agreements (PPAs) and is working on a model, whereby demand from all states will be aggregated and tariff-based competitive bids will be invited from power-generating companies."
 

These auctions would allow generators to bid for medium- term (5-7 years) PPA. This will help revive those commissioned stressed coal-based capacities which have not inked any PPAs.

The move is expected to help nearly 12GW commissioned thermal power plants to get medium-term PPAs which is a prerequisite for getting coal linkage.