The government is working on new norms for power purchase by electricity distribution companies (discoms) that promise to revive demand for power purchase agreements (PPAs). The long-term PPAs have dried off due to weak industrial power demand and tepid offtake.
"If the new norms are enforced, the discoms no longer need to pay a fixed cost to the power generating companies. They will only pay for the power bought. This measure will improve the financial health of the discoms and encourage buying of more power especially from the stressed thermal power assets," said an Odisha government official.
Poor financial health