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Govt to not allow NTPC to sell power in open market

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 12:41 AM IST

The Power Ministry today said it will not allow country's largest power producer NTPC to sell electricity at market-determined prices.

"We are not agreeing to NTPC's proposal. Our interest is to serve the country and not make profit," Power Secretary H S Brahma told reporters on the sidelines of the gas partnership summit here.

He, however, added that as per the Electricity Act 2006, the company or NTPC can sell power in the open market (market-determined prices) from April 2011.

"The company has so much work to do they have so much to add in wind, solar sector etc," Brahma said adding the they should concentrate on that.

At present, NTPC sells 100 per cent of its power to the state power utilities, distribution companies through long- term power purchase agreements.

This exchange takes place as per allocation finalised by the Ministry of Power and based on the tariff determined by Central Electricity Regulatory Commission (CERC).

 As per Electricity Act, 2003, a generating company can supply electricity to any licensee. It can tie up part- capacity of its generating station in long-term power purchase agreement (PPA).

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First Published: Mar 23 2010 | 6:01 PM IST

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