PTC, as an aggregator of generation capacity from long term projects, provides the benefits of credit and market risk mitigation, better price fixation for the benefit of the purchaser, better terms and conditions of supply as well as successful scheduling, dispatch and management of transactions.

Long term contracts are generally of duration of 25 years & above. As per the inter-state trading open access regulation, contracts of duration more than 12 years and up to 25 years and beyond comes under the long term open access.

Since inception, PTC has focused on this segment through facilitation of power projects being set up by Independent Power Producers (IPPs) with whom it enters into long term Power Purchase Agreements (PPAs) as well as sale of electricity from such projects to various utilities/ discoms through long term back-to-back Power Sale Agreements (PSAs).

Power Purchase Agreements for capacity of 14,186 MW were signed up to 31st December 2010 which include 1416 MW from cross border projects of Chukha, Kurichhu and Tala in Bhutan.

The total power sale agreement entered into by PTC as on 31st December 2010 is 5310 MW. The cumulative MoUs signed with various developers (more than 14000 MW) are under active negotiations for finalization of long term PPAs. Projects are based on domestic coal, imported coal and hydro resources.

PTC has been actively participating in the bids invited by States such as Gujarat, Karnataka, Maharashtra, Punjab, Haryana, Rajasthan, Bihar and Andhra Pradesh for long term procurement of power through the Case-I bidding process with tenders having cumulative capacity of 6300 MW. PTC so far has received Letter of Award from Haryana (325 MW), Karnataka (1380 MW) and Uttar Pradesh (300 MW) which aggregates to more than 2000 MW for supply on long term basis.

The operational projects having long term PPA are mainly 37 MW Meenakshi Power Project, 20 MW Samal Hydroelectric Project and 3 x 150 MW Baglihar Hydroelectric Project (PTC's share 225 MW).