MoP proposes new power procurement norms

The MoP is planning to propose new norms for power procurement by electricity distribution companies in order to revive the signing of long-term power purchase agreements (PPAs) by discoms. The new norms will require the distribution companies to only pay for the power purchased while removing their contractual obligation to pay a fixed cost to the genco even if no power is purchased. The move aims to cut the expenses of discoms, improve their financial health and revive industrial demand.