Amid concerns of power supply constraints due to rising coal shortage, the state-run Gujarat Urja Vikas Nigam Ltd (GUVNL) is buying an estimated 100 million units of power daily from the power exchanges at a cost of Rs 150 crore to ensure there are no power cuts. The high procurement cost is expected to be passed on to the customers later through Fuel and Power Purchase Price Adjustment (FPPPA) charges.
The move comes as the high cost of imported coal and natural gas has adversely impacted the power supply situation in Gujarat, which currently has to manage without thermal and gas-fired power plants of 6,400-MW capacity.
