Govt reviews power purchase bid rules

Under SHAKTI, government-owned Coal India offers assured coal supply to units through bidding

The committee set up to recommend changes in the bidding guidelines for power projects would now build upon the SHAKTI scheme to help stranded assets get both coal supply and power sale contracts.

Close to 16,000 Mw of coal-based power projects in India neither have coal supply or a power purchase agreement (PPA) with any state. Of this, 6,250 Mw is installed and 9,854 Mw was under construction as on August.

The committee is chaired by Pratyush Sinha, former central vigilance commissioner. “SHAKTI allows power units to get a medium-term PPA and coal supply for the same period or more,