Independent Power Producers are private power generation companies who sell power to the feeding systems through a feed-in-tariff or through power purchase agreement. In India, the recent trend finds, private sector adding a record capacity now which contributes more than 25% in the electricity market. However, their progress has been hindered by problems such as litigation, financial arrangements, and obtaining clearances and fuel supply agreement. Further state electricity board inability to pay on account of losses due to free power, theft and pilferage also affect power generation from IPP. The new government is looking to expedite statutory clearance process, conduct transparent coal auctions, a new legislation in land acquisition to provide the needed boost. Progress in IPP will lead to empowered consumer which brings more competition.
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