MoP planning bill to amend EA 2003

The MoP is planning to introduce a bill to amend the Electricity Act, 2003 to prevent states from renegotiating power purchase agreements (PPAs). The proposal comes following the Andhra Pradesh and Maharashtra governments’ refusal to honour the existing PPAs with renewable energy developers. Earlier, the ministry was considering promulgating an ordinance as discom dues to generating companies have increased significantly. The bill is likely to be introduced in the latter part of the budget session in February-March 2020, once cleared by the cabinet.