A recent amendment to India’s Power Export Guidelines will not impact the existing Power Purchase Agreement (PPA) between an Indian power company and the Bangladesh Power Development Board (BPDB). The amendment allows power stations in India to connect with the Indian grid, but it doesn’t alter the current PPA terms. The Indian company has been supplying uninterrupted power to Bangladesh from its 1,600 MW Godda plant in Jharkhand and remains committed to fulfilling its contractual obligations as per BPDB’s demand schedule. The amendment is seen as a measure to allow the company to sell electricity to the local Indian market alongside its export to Bangladesh, providing a hedge against political risks in Bangladesh. Under the previous export law, the company was required to export 100% of its power output to Bangladesh.
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