November 29, 2019 at 7:27 am | Government Legal & Tax

High-level group to study system of power purchase and sale

New Delhi: Ministry of Power, Government of India, has formed a high-level group to study the present system of power purchase and sale under the Power Purchase Agreement (PPA) including power trading.

The group will also explore the system of power markets globally and make recommendations for changing the structure and system of power purchase and sale in the country including reforms needed to encourage investments, efficiency and competitiveness in power markets.

As per the provision of Electricity Act, 2003, Ministry of Power has already issued Competitive Bidding Guidelines for long term, medium-term and short term power procurement by Distribution Licensees.

As mandated in Tariff Policy, all future power procurement by Distribution Licensees in states to be done through tariff-based competitive bidding only. In order to further optimize the cost of power procurement by state distribution licensees, a mechanism of national load merit order for inter-state generating stations has also been introduced.

Since the launch of the Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya on 11.10.2017, about 2.628 crore willing un-electrified households were electrified up to 31.03.2019 across the country including 1,35,881 households of Bulandshahr district, Uttar Pradesh and 1,83, 744 households of Balangir district, Odisha.

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