Government may invoke emergency powers to let power producers step out of PPAs

The government might, reportedly, invoke its emergency powers to make 40 GW domestic coal-based plants continue to generate power when they start blending imported coal even though their power purchase agreements (PPA) do not allow higher fuel costs to be passed on to the buyer.

The government would allow these plants to sell electricity on the power exchanges if the states they have PPAs with do not buy costlier electricity generated by them.The power ministry is working on a methodology to pass-through the higher cost of blending imported coal to the consumers.The directive to these plants is expected to be issued soon.

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