Document background
The Master Power Purchase And Sale Agreement is a fundamental document in India's power sector, designed to facilitate structured power trading relationships between generators, distributors, and bulk consumers. This agreement type is particularly crucial in the Indian context, where the power sector operates under a complex regulatory framework including the Electricity Act, 2003, CERC regulations, and state-specific requirements. It's typically used when parties intend to establish a long-term framework for multiple power purchase transactions, providing flexibility through transaction-specific schedules while maintaining consistent general terms and conditions. The document incorporates essential elements such as power specifications, pricing mechanisms, regulatory compliance requirements, and risk allocation provisions, making it suitable for both conventional and renewable energy transactions in the Indian market.
