The Indian government launched a Pilot Scheme for procurement of aggregate power of 2500 MW on a competitive basis for three years under medium term from commissioned power plants without power purchase agreements. The main purpose of the scheme is to revive commissioned power plants which are unable to sell electricity in the absence of valid power purchase agreements. These plants can bid for power supply under the scheme.

Under the scheme, a single entity can be allotted maximum capacity of 600 MW. The scheme assures a minimum offtake of 55 percent of contracted capacity. The tariff will be fixed for three years without any escalation. The PFC Consulting is in process of inviting the bids in the first week of May under the scheme. The bidding will be conducted on the DEEP e-Bidding Portal and with L1 matching for bucket filling without reverse auction. It is expected that this scheme helps to revive the power demand which has affected the generators not having Power Purchase Agreements. According to industry sources, the move will help nearly 12 GW commissioned thermal power plants to get the medium-term power purchase agreement which is a pre-requisite for getting coal linkage. Presently out of the 40 GW stressed coal-based power generation capacity, 28 plants of 24 GW worth Rs 1.44 lakh crore are commissioned.