The Gujarat government has decided to reverse its 2018 decision to amend the power purchase agreements (PPAs) it had signed with Tata Power, Adani Power and Essar Power for their imported coal-based projects to raise tariffs.
Reportedly, the state cabinet of Gujarat has approved a decision dated June 12, 2020 by the Gujarat Urja Vikas Nigam Limited (GUVNL) to revoke the 2018 tariff hike in view of falling international coal prices, change in supply situation of coal and to safeguard the interest of consumers. Tata Power, Adani Power and Essar Power have PPAs for the supply 4,800 MW of capacity to GUVNL for 25 years. The state government had earlier, accepted the recommendations of a high powered committee which allowed these companies to raise tariffs after amending PPAs.