Power Minister Veerappa Moily has said that the power purchase agreements (PPAs) should be revisited only in exceptional cases.

Mr. Moily said on Tuesday that PPAs can not be revisited as a matter of routine as there is sanctity for the signing of a PPA.

Speaking to reporters on the sidelines of an NTPC event, Mr. Moily said, “There is sanctity for the signing of a PPA. It cannot be meddled with, that easily. When there is a need, it has to be examined case-to-case on exceptional circumstances.”

Mr. Moily’s comments came in response to reports that Attorney General Goolam Vahanvati said that PPAs are not sacrosanct, and that the power companies cannot be refused a hearing based on the signed agreements.

It may be noted here that PPAs are long-term power supply agreements signed between the power generation and power distribution companies.

In some cases, state power regulators and distribution companies refused to increase tariffs citing PPAs that are legally binding to the signatories. The matter had been referred to the CERC.

Meanwhile, the Power Minister is preparing to meet the representatives of power producers on Friday this week.