The Gujarat government has set up a panel to suggest within two months a rescue plan for three large generation projects belonging to the Tata, Adani and Essar groups in the state, with combined PPA (power purchase agreements) for over 8,000 MW and outstanding debts in excess of Rs 22,000 crore.
The panel will be headed by former Supreme Court judge, Justice R K Agrawal. Former RBI deputy governor S S Mundra and retired Central Electricity Regulatory Commission chairman Pramod Kumar Deo will be members.
As the Central regulator, Deo had granted tariff hike sought by these imported coal-based projects after fuel costs rose due to changes in Indonesian law. The relief was granted under PPA provisions of ‘force majeure’ and ‘change in law’. But the consumer states refused and the matter landed in the Supreme Court, which last year struck down the relief.
Unable to sustain operations at full capacity due to ballooning debt, the promoters reduced supplies and last year offered to sell 51% stake in the projects for Re 1 to the Gujarat government. Read More