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Home » Power Update » Power Ministry to amend law to make obligations under PPAs & RPOs statutory binding: RK Singh

Power Ministry to amend law to make obligations under PPAs & RPOs statutory binding: RK Singh

By November 27, 2017 10:13 am IST

Power Ministry to amend law to make obligations under PPAs & RPOs statutory binding: RK Singh
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The government will soon amend the law making obligations under power purchase agreement (PPA) statutory binding thereby ensuring that all discoms have PPAs to cover 100 per cent requirement and it has convened a meeting of energy ministers of all states on November 10-11 in this regard, Union Power Minister, R.K. Singh said at an ASSOCHAM event held in New Delhi.

“I have called a meeting of energy ministers of all states on November 10-11, I will tell them that I am going to make obligations under PPAs statutory binding, that all discoms must have PPAs to cover 100 per cent of requirement and that there will be penalties for not paying electricity bills on time,” said Singh while inaugurating an ASSOCHAM Global Investors’ India Forum.

The Union Minister also said that he will tell all state energy ministers that there has to be a limit to cross-subsidisation in tariff to make the industry competitive enough.

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