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The IPP Power Purchase Agreement is a crucial document in India's power sector that governs the long-term relationship between power generators and purchasers. It is primarily used when an independent power producer plans to set up and operate a power generation facility and sell electricity to a distribution company or other bulk power purchaser. The agreement must comply with the Indian Electricity Act 2003, various regulations of the Central and State Electricity Regulatory Commissions, and other applicable laws. It covers essential aspects such as project implementation, tariff structure, operational parameters, performance standards, risk allocation, and dispute resolution mechanisms. This type of agreement is fundamental to power project financing and typically serves as a bankable document for securing project funding.

1. Parties: Identification of the Power Producer and the Power Purchaser with their complete details

2. Background: Context of the agreement including project details, relevant approvals, and purpose

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. Term and Termination: Duration of the agreement, conditions precedent, and termination provisions

5. Sale and Purchase of Power: Core obligations regarding power sale and purchase, including contracted capacity

6. Power Station Requirements: Technical specifications and operational requirements for the power facility

7. Interconnection and Transmission: Requirements for grid connection and power evacuation arrangements

8. Metering and Energy Accounting: Specifications for metering, testing, and energy measurement

9. Tariff and Payment: Detailed tariff structure, billing procedures, and payment terms

10. Performance Security: Requirements for performance guarantees and security deposits

11. Construction and Commercial Operation: Timeline and requirements for project construction and commissioning

12. Operating Procedures: Detailed procedures for day-to-day operation and maintenance

13. Force Majeure: Definition of force majeure events and consequent rights and obligations

14. Change in Law: Provisions dealing with regulatory changes and their impact

15. Events of Default and Remedies: Description of default events and corresponding remedial actions

16. Dispute Resolution: Procedures for resolving disputes including arbitration

17. Assignment and Financing: Rights and restrictions regarding assignment and project financing

18. Representations and Warranties: Standard declarations and assurances by both parties

19. Confidentiality: Provisions for protecting confidential information

20. Governing Law and Jurisdiction: Applicable law and jurisdiction for the agreement