Gujarat government asks discoms to revise tariffs for imported coal-based TPPs

The Gujarat government has issued an order to the state distribution companies to raise tariffs of the three imported coal-based power plants owned by Tata Power, Adani Power and Essar Power in Gujarat in line with the recommendations of the high-power committee. The state government has asked discoms to revise their power purchase agreements (PPAs) and seek regulatory approval for the same. The revised PPAs will entail a pass-through of the higher cost of coal to consumers. The amended PPAs will be circulated among other beneficiary states for vetting. In a related development, Tata Power has written to the state governments of Punjab, Haryana and other states seeking amendments to their PPAs based on the recommendations of the high-power committee constituted by the Gujarat government.

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