Discontinuation of power supply of 3,000 MW by two top private players, forcing state utility Gujarat Urja Vikas Nigam Limited (GUVNL) to purchase power from costlier sources, is putting daily burden of Rs10 crore on the state's power consumers. Adani Power has signed long-term power purchase agreements with GUVNL to supply 2,000 MW power, and Essar 1,000 MW. Adani is contracted to supply 1,000 MW at Rs2.35 per unit and another 1,000 MW at Rs2.89 per unit, while Essar is required to supply 1,000 MW electricity at Rs2.80 per unit. Both power producers have stopped supplying electricity to the state utility citing higher cost of generation than the tariffs they are entitled to. A government official said on condition of anonymity that they are mulling legal steps against the power producers for failure to comply with the PPAs.

Source: dna May 08, 2018 00:33 UTC