Padamjit Singh, Chief Patron, AIPEF while addressing executive committee said that all the long term power purchase agreements made with private generators should be reviewed particularly the condition off take or pay for capacity charges needs to be removed.
States are paying thousands of crore to private companies even without purchasing single unit as per terms and conditions of agreements. Excess addition of power capacity by private sector power stations has led to backing down of state thermal power plants.
V K Gupta, spokesperson of Federation said that the main factor responsible for this is eliminating the role of Central Electricity authority (CEA) for examining the justification and economic rationale in new capacity addition. The role of power planning & CEA was eliminated & replaced by market forces.
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