Union government proposes amendment in EA 2003 to ensure adequate PPAs

The union government has proposed to make an amendment to the Electricity Act, 2003 in order to ensure that discoms sign adequate power purchase agreements (PPAs) for uninterrupted power supply to consumers. For instance, if an area’s peak demand is 5,000 MW, the respective discom/s should have PPAs of the requisite capacity. The proposed change is expected to help achieve the target of universal household electrification in the country, besides boosting power demand.