Rider to old PPA cancellation policy a concern for NTPC

The power ministry’s proposal that electricity discoms can relinquish power purchase agreements (PPAs) of over 25 years with the central generating stations (CGS) lacks clarity on whether these loss-making entities can retain a section of the pacts that makes business sense for them, analysts said.

The proposal is also silent on allocation of coal to power plants once they lose the PPA with discoms, which could be a concern for NTPC with which bulk of the old PPAs are signed, they added.