Centre enables discoms to relinquish legacy PPAs

The Centre has issued directions to enable power distribution companies to exit power purchase contracts with old central utilities-run stations, freeing up nearly 20 Gw capacity that can enter into short and medium term tie-ups or sell on exchange.

The union power ministry has issued guidelines giving choice to the power distribution companies to continue or exit PPAs that have completed their 25-year term and allowing the generators to sell electricity in any mode, sources said.