Declining coal prices: Gujarat revokes PPA relief to power units

Apprehending a big financial blow to its power discom GUVNL, the Gujarat government has reversed a December 2018 resolution, agreeing to provide relief to three imported coal-based power plants in the state run by Adani, Tata and Essar. Now, after taking into account the fall in global coal prices, the state will revise the terms and conditions of the PPAs in new supplementary agreements, where the tariff calculation will be done on the basis of fresh parameters.

“…Gujarat Urja Vikas Nigam (GUVNL) is hereby directed to draft the supplemental PPAs with EPGL (Essar) and CGPL (Tata) consistent with the above decision and the same shall be sent to the state government for approval on a case to case basis,” the new resolution, reviewed by FE said.

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