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Legal Central Ministry of Power Electricity Act, 2003

Ministry of Power has announced a legal position allowing parties to decide power purchase or sale after a Power Purchase Agreement expires

11-Sep-2023 | F. No. 23/23/2020-R&R/RCM

Ministry of Power has issued a Notification stating that it has decided to enforce a legal position that allows parties to decide whether to enter into another agreement for power purchase or sale upon the expiry of a Power Purchase Agreement (PPA). The Central Generating Stations (CGSS) of a Central Public Sector Undertaking (CPSU) whose PPAs have expired will be bundled with gas-based power and sold to anyone who wants to buy.

By virtue of the Notification, it has also been notified that the rate of power will be fixed fairly and transparently, and equal for every buyer from the pool. The Ministry of Power has issued the Scheme for Pooling of Tariff of these plants, which is equitable for both parties and beneficial to the country by improving resource adequacy.

Further, the guidelines issued by the Ministry have been superseded by the MoP Scheme dated 20th April 2023. The State/Discom may place requisitions for taking power from the pool after the expiry of the current PPA, as per the provisions of the Scheme.

For more information, please refer to the attached document.

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