The Gujarat government last week passed an order to allow thermal power plants owned by Adani, Tata and Essar groups to pass on the higher cost of coal to discoms, which means that ultimately consumers will bear the brunt of higher power tariffs.
The decision was taken in accordance with the Supreme Court order and recommendation made by a high-powered panel. The apex court on October 29 gave go-ahead to discoms and stressed power companies to appeal for amendment in power purchasing agreement (PPA) of Mundra projects.
The three-member higher-power panel formed by the Gujarat government recommended passing the burden of high coal price to discoms along with extention of PPA and haircut to lenders. Read More
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