The Gujarat government and its discom, Gujarat Urja Vikas Nigam, will on Friday seek the Supreme Court’s consent for implementing a plan allowing the Tata, Adani and Essar groups to pass on increased fuel costs of their imported coal-based power stations in the state that have been doddering under mounting losses as consumer states refused to pay higher tariffs.
The move follows the plan proposed last month by a panel under former SC judge, Justice R K Agrawal. The state government had set up the panel to suggest ways to pull the three power plants in question — with combined PPAs (power purchase agreements) for over 8,000 MW and outstanding debt in excess of Rs 22,000 crore — back from the financial brink.
The recommendation of the panel, with former RBI deputy governor S S Mundra and retired Central Electricity Regulatory Commission chairman Pramod Kumar Deo as members, has the potential to give consumers in Gujarat, Maharashtra, Rajasthan, Punjab and Haryana a tariff shock by putting an estimated combined burden of Rs 1.29 lakh crore over 30 years. Read More