Government launches Pilot scheme Procurement of Aggregate Power of 2500 MW for 3 years

Ministry of Power has launched Pilot Scheme for Procurement of Aggregate Power of 2500 MW on competitive basis for 3 years. The main purpose of scheme is to revive commissioned power plants which are unable to sell electricity in absence of valid power purchase agreements (PPAs).

Key Facts

Under this scheme, these plants will be allowed to bid for power supply. Under it, power will be procured from generators with commissioned projects under medium term but without Power Purchase Agreement.

PFC Consulting Limited (a wholly owned subsidiary of state-run Power Finance Corporation) has been appointed as Nodal Agency and PTC India Limited as aggregator.

PTC India will sign three-year (mid-term) Agreement for power procurement with successful bidders and Power Supply Agreement with Discoms. Under pilot scheme, a single entity can be allotted maximum capacity of 600 MW.

The scheme will assure minimum off-take of 55% contracted capacity.  The Tariff will be fixed for 3 years without any escalation. This scheme is expected to revive power demand which has affected generators not having Power Purchase Agreements.


The scheme will help nearly 12 GW commissioned thermal power plants get medium-term power purchase agreement (PPA) which is pre-requisite for getting coal linkage. Presently out of 40 GW stressed coal based power generation capacity, 28 plants of 24 GW worth Rs 1.44 lakh crore are commissioned. Nearly half of these capacities (12 GW) do not have coal linkage because of no PPAs.

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Categories: Government Schemes in India