Views of Angel Broking:
"In a surprise move, the Uttar Pradesh Chief Minister, Yogi Adityanath, has cancelled the 15 year power procurement bids from 8 independent power producers, to the tune of 3800 MW, conducted by the previous government in 2016. The lower electricity rates in the spot markets have triggered this. While the PPA with power producers was signed at a 15-year committed price of Rs.4.15/unit, in the spot market price is at Rs3/unit. Long term power purchase agreement assures long term procurement of the power from the power station as well as its financial viability. Cancellation of the bids, in our opinion is a setback to the power sector which is facing problems on several fronts."