Gujarat cancels 2018 tariff hike to Adani, Tata, Essar’s ultra mega power plants
Mumbai: The Gujarat government has decided to reverse its 2018 decision to amend the power purchase agreements (PPAs) it signed with three producers – Tata Power, Adani Power and Essar Power – to raise the tariffs in order to offset the rising cost of imported coal.
On Thursday, the energy and petrochemicals department of the state noted in a press release that “the market trend of Indonesian coal prices (have) changed the scenario and to safeguard the interest of consumers, the government of Gujarat has revoked the regulation dated December 1, 2018 as the same was not fulfilling its objective and purpose.”
The state cabinet had, in fact, approved a decision dated June 12 by the Gujarat Urja Vikas Nigam Ltd (GUVNL), the electricity services department of the state, to revoke the 2018 tariff hike in view of falling international coal prices. Instead, the new order said that “matter of signing supplemental PPAs with EPGL (Essar Power Gujarat Ltd) and CGPL (Coastal Gujarat Power Ltd, a Tata Power subsidiary) will be decided on a case to case basis”.
