The Union power ministry has cancelled the auctions under the second phase of the pilot scheme to salvage stressed power units held earlier this year to sign power purchase agreements (PPAs) with 2,500 mega-watt (MW) of stressed electricity generating units. It has issued tenders afresh for selecting an aggregator for this batch of power plants.
The move comes a year after state-run NHPC was appointed as aggregator for the second phase of the scheme. Though no reason has been cited by the ministry for the cancellation of the auctions, industry sources say a fall in spot market prices for electricity amidst overall low demand could have prompted the move. They also pointed out that NHPC’s lack of experience as an aggregator might have delayed the process.
