Government to invite bids for power from 8,000 megawatt thermal capacities without PPAs

Government to invite bids for power from 8,000 megawatt thermal capacities without PPAs

Power Minister RK Singh has said that the government will invite bids from states to sell electricity generated from 8,000 megawatt (MW) thermal capacities without PPAs (Power Purchase Agreements). A total of 8,000 MW of thermal capacities in India are without any power purchase agreements, Singh, who is also the Minister for New and Renewable Energy, told to siren news officals.

Sharing the government’s plan to resolve the issue, the minister informed that states have been asked to send their electricity requirement, and accordingly bids will be invited.

“We will aggregate (their demand) and call on for bids and based on the bids, whoever puts in the lowest bids, PPAs will be signed. Once PPAs are signed, they (states) will get the power,” he said.

Speaking further, the minister said there are also some thermal capacities undergoing the National Company Law Tribunal (NCLT) proceedings, and the government has already taken several steps, including meeting with the bankers, to resolve the issue at the earliest so such plants can start operations.

“There are some projects in the NCLT. The country has 17,500 MW plants, which run only on imported coal. Out of that, 2,500 MW were under the NCLT. I had a meeting with bankers etc. We worked out on ways and means of starting this,” he said.

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