To discuss various issues related to proposed power purchase agreements (PPAs), private electricity producers have sought a meeting between the Union Power Minister M Veerappa Moily and industry bodies CII, Ficci and APP.
Private electricity producers feel that the PPAs will discourage global players from entering the sector.
Ashok Khurana, Director General, APP (Association of Power Producers) said in a letter to the Union Power Minister M Veerappa Moily that APP requests for meeting of joint delegation of APP, Assocham, CII and Ficci to highlight structural issues pertaining to the draft power purchase agreements (PPAs) proposed by the government.
APP comprises top heads of over 20 private power companies.
The companies said that they have observed that in the new model PPA, the overall structure of the PPA has been changed in its entirety and it is evident that many provisions of the proposed PPA completely change the balance of risk in development of power projects, it said.
These entities are of the view that the proposed PPA would only add to contract failures and deter investments in the sector.