Contrary to the belief that signing power purchase agreements (PPAs) with reliable counterparts such as Solar Energy Corporation of India (SECI) and National Thermal Power Corporation of India (NTPC) is better than having PPAs with discoms directly, this might not be the case, say sector analysts.
After studying the fine print in several PPAs signed between renewable power developers and NTPC and SECI, India Ratings found that while PPAs underscore that payment obligations are direct obligations, all other risks and obligations would be on a pass-through basis.
