Model power buying pacts to be redrafted to junk long-term deals

The government is redrafting its model power purchase agreements (PPAs) to move away from long-term contracts.

“Long-term power contracts are no longer suitable for the Indian power system,” a senior government official said. “Power procurement costs can be brought down through a mix of contracts of different tenures. State power distribution companies are no longer interested in getting stuck with long-term contracts.”