Centre to invite bids from 8,000 MW power capacity without PPAs

30 Jun 2022 CW Team

RK Singh, the Power Minister, announced that the government would invite bids from the states to sell electricity produced from 8,000 megawatts (MW) thermal capacities without power purchase agreements (PPAs).

Singh, who is also the Minister for New and Renewable Energy, told the media that there are no power purchase agreements for 8,000 MW of India's thermal capacity.

The minister explained the government's strategy for dealing with the problem, saying that states had been asked to send their electricity needs and that bids would then be requested in response.

The minister said that for these plants to begin operating, some thermal capacities are the subject of National Company Law Tribunal (NCLT) proceedings.

The government has already taken several steps, including meeting with the bankers, to resolve the situation as soon as possible.

He said the NCLT contains some projects. There are 17,500 MW of power facilities in the nation that only use imported coal, and 2,500 MW of it fell under the NCLT.

Singh revealed that in a meeting with bankers etc., they devised strategies for getting this going.

He added that they would aggregate (their demand) and call on for bids, and based on the bids, whoever puts in the lowest bids, PPAs would be signed. Once PPAs are signed, they (states) will get the power.

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Also read: Andhra Pradesh to buy 500 MW-1,500 MW daily to meet power demand

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