MoP forms a group to monitor power market

Ministry of Power has formed a high-level group to study the present system of power purchase and sale under the Power Purchase Agreement (PPA) including power trading. The group will also explore the system of power markets globally and make recommendations for changing the structure and system of power purchase and sale in the country including reforms needed to encourage investments, efficiency and competitiveness in power markets.

As per the provision of Electricity Act, 2003, Ministry of Power has already issued competitive bidding guidelines for long-term, medium-term and short-term power procurement by distribution licencees. As mandated in tariff policy, all future power procurement by distribution licencees in states to be done through tariff-based competitive bidding only. In order to further optimise the cost of power procurement by state distribution licencees, a mechanism of national load merit order for inter-state generating stations has also been introduced.

Since launch of the Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya on 11th October 2017, about 2.628 crore willing non-electrified households were electrified up to 31st March 2019 across the country including 1,35,881 households of Bulandshahr district, Uttar Pradesh and 1,83,744 households of Balangir district, Odisha.