Power generators see risk in Centre's electricity purchase scheme

Under the scheme, a single entity can be allotted a maximum capacity of 600 Mw

The power ministry’s efforts to ease stress in the sector may fall short of expectations because the scheme it has made has more risks than benefits for generators, industry executives say.

On May 1, the central government launched a pilot scheme for procuring 2,500 megawatt (Mw) in aggregate on a competitive basis for three years from generators with commissioned projects but without a power-purchase agreement (PPA).

PFC Consulting (a wholly-owned subsidiary of Power Finance Corporation) has been appointed the nodal agency and PTC India the aggregator.

Under the scheme, a single entity can be allotted a maximum capacity of 600