Smokestacks stand at the coal-fired NTPC Ltd. Badarpur Thermal Power Station at night in Badarpur, Delhi, India. Photographer: Vishwanathan/Bloomberg

Government To Launch Second Round Of 2,500 MW Medium-Term Auctions 

The government plans to launch the second round of sale of aggregated power from producers without power purchase agreements after a good response from the initial round.

“We found that a lot of interest is coming up for (the auction) 2,500 MW medium-term PPAs,” said AK Bhalla, secretary of the Ministry of Power, on the sidelines of an event in Delhi today. “Definitely there would be PPAs coming up (on the block). This was a pilot. We will try to bring a formal scheme for another round of 2,500 MW medium-term PPAs.”

The Power Ministry had launched in April a pilot for procurement of aggregate power of 2,500 MW on competitive basis for three years under medium term i.e. from generators with commissioned projects but without power purchase agreement. The aim was to revive power demand from generators not having agreements. Agreements for up to 1,900 MW of power generating capacity were signed last month.

“We didn’t have difference between fixed cost and variable cost,” Bhalla said. “There was no escalation (of tariff). Those points will be discussed. Whatever (issues) stakeholders have raised, will be discussed.”

Nearly thirty-four stressed assets worth Rs 1.8 trillion have been identified by the government in the coal-fired power sector. One of the reasons for stress is the lack of coal and fuel supply agreements, rendering the plants unviable.