PFCCL, PTC in pact as nodal agencies for stressed auctions

State-run Power Finance Corp (PFC) said its unit PFC Consulting Ltd (PFCCL) has entered into a memorandum of understanding with PTC India Ltd for jointly exploring opportunities for procurement of power from the coal-based commissioned thermal power projects for supply to discoms and facilitate signing of power purchase agreements, a company statement said.

ET had on January 3 reported that the government expects to conduct auctions next month to help idling power plants that do not have power purchase agreements (PPAs) and PFC and PTC have entered into an agreement for implementing the auctions.

The power ministry is working on a demand aggregation model, whereby demand from all states will be aggregated by a nodal agency and tariff-based competitive bids will be invited from power generating companies.


In the first round, bids for 2,500 mw capacity for a period of less than seven years are likely to be called, a senior government official said. "We are working on aggregation model. Today states are in need of power but are not signing power purchase agreements as they do not want to sign long-term pacts and get tied to fixed costs," he said on condition of anonymity.