The government today said that it has no proposal to allow NTPC, the country's largest power producer, to sell electricity in the open market.
"The government does not have any proposal to allow NTPC to sell around 10 per cent capacity at market determined prices," Minister of State for Power Bharatsinh Solanki said in a written reply in the Rajya Sabha.
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 power sector regulator 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).
And as far unallocated power is concerned, it is sold to the states at the rates determined by CERC.