No, 2329(2020-RAR [254623] ‘Government of Inia Ministry of Power ‘Shram Shalt Bhavan, Rafi Marg ‘New Doth, 5° uly, 2024 To, 1. Principal Seoretary! Secretary incharge ofthe power department of all Statas/UTS 2 CMDs of CGSs ‘Subject: Enabling the Discoms to elther continue or exit from the PPA after ‘completion of the term of the PPA io beyond 25 years or a period spectied in the PPA and allow flexibilly to the Generators to sell power in any mode after State/Discom exit from PPA, - Clarification regarding Clause No. (Vl) of Notification no, 23/23/2020- R&R, GOI, MoP dated: 22.03.2021. Sir | am directed to refer to the representations received from organisations seeking clarification on the clause 2(Vll) of the guidelines on the above subject issued on 22.03.2021 (copy enclosed) anc say that the issues have been examined in this Ministry, 2, Wis clarified that the word ‘entire in clause 2{Vl) ofthe said guidelnes issued on 22.032021 “In case of Bulk Power Supply Agreement (BPSA) also, the SlalaDiscoms may ‘alinquish entire allocated power from such projec!s which have completed 25 years since ‘commissioning of the project. Power supply from other projects shall continue as per the terms of the PPA’ means the entire allocated power {rom the project which has completed 25 years from the date of commissioning of the project. '& also caries ‘hat allocated power cannot be surrendered party from a project 3. Further, the clause 2(Vil) read with ciause 2() and 2) stipulates thatthe fst ight to avail power from Central Generating Stations developed us 62 ofthe Elecrcty Act 2003, {even beyond the term of PPA i.e. on competion of 25 years from the data of commissioning ‘of the plat or a period specie’ in the PPA wil cntinus fo Be withthe StatefDiscoms Wi whom the: PPA was signed. Accordingly, the State may chaose to canine to take power from a projector project(s) under clause 2(Vl) even after completion of 25 years from the date of commissioning ofthe projector ext fom a projector project(s) unde’ clause 2¢Vil) alter completion of 25 years frm the date of commissioning of ha projec. 4, This issues withthe approval of Competent Authoty. Yours fathaty DUE. (0. Chattopadhyay) Deputy Secretary tothe Government of India Ph: 011-2371 8250 Enel: as above Copy to: Secretary, SERCS 2. Secretary, FORNo.29/2312020-R&R [254623] Government of Inia Ministry of Power ‘Shram Shakti Bhawan, Raf Marg, New Delhi, 22" arch, 2021 To 1. Pr, SecretarySecretary in charge of Energy/Power Department, All Sttes/UTS 2. CMDs of al CGSs Subject: Enabling the Discoms to either continue or exit from the PPA after completion of the torm of the PPA ie beyond 28 years or a period specified in the PPA and allow flexibility to the Generators to sell power in any mode after State/ Discom exit from PPA, ‘SifMadam, iam directed to iefer to this Ministy’s letter of even no. dated 04.12.2020 seoking comments on the proposal mentioned abave In supject and to say thal the ‘comments received on the proposal were examined inthis Minty. 2. _ Based on the comments received in thie ministry, the folowing Guidelines for enabling the Discoms to ether continue or ext from the PPA after competion o term of the PPA i. bayond 25 years or a period specified in the PPA and alow flexbilty to the Generators to sell power in any made after Stste! Discom ext from PPA have been framed for the compliance fr al he cencarned stakeholders |The frst ight to vail power from the Central Generating Stations developed Under section 62 of the Electricity Act (eligible CGSs), even beyond the term of PPA ie. on completion of 25 years from the date of commissioning of the Plant or a period specified in the PPA will continue to be with ‘he States! Discoms with whom the PPA was signed |. Wing State/Discoms may refinqush their share from eligible CGSs after expiry of the term of the PPA ie. on completion of 25 years from he date of Commissioning of the plant ara period spectfiad in the PPA. The request for Felinguishment of such power from CGSs may be submited only after the ‘approval ofthe State Commission who would ensure the adequagy of power tied up with the Discoms to mest the demand of electricity for all the ‘consumers under such Discoms. IIL 9) The States! Discoms having Long-term PPAS with the Central Generating Stations, which are due to expire in the near future can opt to relnquish the tntire allocated power (fm and unallocated share) from such eligible CGS pst completion of the PPA tenure Le, on completion of 25 years from the = mww vu vi, {date of commissioning of the plant ora period speciad in the PPA by giving ‘sit months advance notice for their intention to relnguish such power, ») For the Stations, which have already completed 25 years, States may ext from the PPA of such eligible CGS ater giving six months of notice of relinguishment of such power. ‘The relinguishment of such power will be considered only afte" the Slater tliscoms have cleared al the past dues. The State/Discoms shall continue to be liable to make all the eligible payments! dues as per the prevaling rulesiregulations to the Generators whose share of power has been relinguished til ral seterent In all such cases of relinguishment of share from power stations, the power allocation, if any, made by the Central govemment to the Stats from that power station would be treated as withdrawn, timation to this efect wil be ‘equited to be given by elther the generating company or the State to the Ministry of power. States may also relinguish the entre unallocated power from the CGSs (except some specif allocations e.g. power which has been bundled with solar tc). Part ralinguishment of share from unallecated pool of power shal ‘not be feasible and accordingly shall not be allowed, ‘Any share for Central Generating statons, once relinquished by the State, wil not be allowed to be taken back by the State under the same PPA conaitions, In case of Bulk Power Supply Agreement (BPSA) also, the state / ciscome may relinquish entre allocated power from such projects which have ‘completed 25 years since commissioning of the project. Power supply from other projects shall continue as per the terms ofthe PPA. For Nuclear Power Generating Stations, the mechanism of relinguishment of Power after competion of term of PPA shall be 2s decided by the Department of Atomic Energy as the tari of Nuclear Power Generating Stations is {determined by the Department of Atomic Energy on recommendation of CEA, ‘The central generating stations, whose power gets relinquished by States, ‘would be free to sell such relinquished power under the various avenues such 4) Tie up with any other buyers desiring o go fer long term PPAS or Medium term PPAs (upto 5 years) or short term PPAS through competive bidding rout. b) Sell power in the power exchanges including Day-ahead, Realtime market and Term-ahead markets, etc. ') Get the power reallocated to the willing buyers, if any, as per the extant provisions of reallocation of power from CGSs, a8 eee m13 3. This issues wth the approval of Competent Authority Yours faith, Enc As above Bins (Ghanshyar Prasaa) Joint Secretary tothe Government of India Tole No. 2371 0389 Copy to: 1) All Joint Secrotaies/Chiet Engineer, Ministry of Power 1) PS to Hon'ble Minister, Sr. PPS to Secretary (Power), PPS to AS (SKGR), PPS to [AS (VKD), PPS to Sr. Advigor, Sr. PPS to JS (RAR), PA to DS (RR),