Govt. has decided to extend the benefits of tripartite agreement to solar power companies. The government has decided to extend a tripartite agreement that provides payment security to the country’s largest thermal power producer by fifteen years from the current end-date of October 2016.
As per the existing agreement signed in 2011, any state defaulting on payments to NTPC risks a deduction from its annual transfers made by the Centre. The government has agreed to renew the agreement between Reserve bank of India (RBI), Centre & state government.
Analysts believe that, solar developers are worried about Discoms due to their ability to pay bills on time. So in this situation developers might compete to sell power at lower price to NVVN with guaranteed payment.