Haryana cabinet gives nod to supplementary PPA with Adani Power

The Haryana Cabinet has given approval regarding signing of a supplementary power purchase agreement (PPA) with Adani Power Limited after it stopped supply of power due to rising prices of imported coal.

The approval has been given to surrender imported coal-based capacity of 224 MW and to retain a total capacity of 1,200 MW at Haryana periphery to be generated with domestic coal only. The rest will be imported coal based, which if scheduled, will be paid with pass through of imported coal cost and other related costs. Notably, Haryana discoms had entered into two PPAs for 712 MW each with Adani Power on August 7, 2008, at a levelised tariff of Rs 2.94 per unit for 25 years, for the procurement of contracted capacity of 1,424 MW in aggregate from Mundra power project in Gujarat. Adani Power had stopped supply of power since September 2021 on the ground of it suffering losses in view of higher operational cost due to increased rate of imported coal, and sought a renegotiation of the PPA and related issues.