Power producers turn to group captive model in tough times

Around 40,726 MW of power capacity in India was operating on the captive model

The more than a decade old group captive model is attracting attention as power producers in the country continue to struggle with idle capacities, lack of long-term power purchase agreements (PPA), low merchant rates and pending dues from the state-run distribution companies.

In October 2015, OPG Power Generation Pvt Ltd made a major shift in terms of sales from two of its power plants as it began selling to group captive consumers instead of the Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO). The move, along with other factors, helped OPG improve its credit profile. The company, in fact, received higher