Government of India Launches Scheme to Auction PPAs Linked with Coal Supplies
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The government of India has announced that it is ready with a scheme to auction power purchase agreements (PPAs) linked with coal supplies from Coal India Limited (CIL). This auction would be for short term PPAs with coal supplies. This would help around 10 GW of power plants which are currently idle due to lack of fuel supply or a PPA contract.
In the proposed auction scheme the bidders will be informed in advance about the availability of coal supply from the various CIL subsidiaries and mines. Depending on these inputs, tariff based competitive bids would be invited from interested companies. The bids will be invited for 2,500 MW of power supply capacity for three years. The proposal is third in the row of schemes associated with auctioning of PPAs but this would be the first time that PPAs are associated with coal supplies. CIL is likely to allocate 12 million tonnes as its annual commitment for the scheme.
Scope
An overview of Government of India's newly introduced scheme for auctioning power purchase agreements (PPAs) linked with coal supplies.
Reasons to Buy
Gain insight into the new scheme introduced by the Government of India to auction PPAs associated with coal supplies.
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