In a setback to Tata Power Mundra, Adani Power and Essar Power, the Gujarat government has gone back on its earlier decision to revise power purchase agreements (PPA), totalling 7,180 megawatt (Mw).
According to state government sources, the earlier resolution allowing these developers to charge higher tariffs, “now stands cancelled”. It will now sign supplemental PPAs with these units on a “case-by-case basis” over and above the existing PPAs.
The earlier resolution was issued in November 2018 after a high-powered committee (HPC) formed by the state government suggested new terms of PPA with cost escalation to be shared by consumers, lenders, and the project developer.
