As reported, in power tolling, a power marketer inks a contract with the operator of a generating plant to convert the power marketer’s fuel into electricity. That electricity will belong to the power marketer or the fuel supplier. The power generator is paid a tolling fee for its services.

T N Thakur, chairman and managing director of PTC India, told Reuters: “The agreement is now being negotiated…once broad conditions of the agreement are finalised it will be signed.”

PTC Energy plans to have about 350-400MW electricity through tolling arrangements. The firm is expected to pay per unit generation charges in the range of INR1.25-1.35 per kWh to the operators of power generating plants.