Gujarat’s imported coal order to push up tariff in 5 states

Gujarat’s imported coal order to push up tariff in 5 states

Power tariffs in Gujarat, Maharashtra, Haryana, Rajasthan and Punjab are set to rise following the Gujarat government’s order allowing the Tata, Adani and Essar groups to pass on to consumers the higher cost of imported coal

used in their power plants in the state. But industry watchers say the last word was yet to be spoken on the vexed issue.
In an order issued on Saturday, the state government asked its distribution company (discom) to reset its agreement with the power plants and seek regulatory approval for higher tariffs. The discom was also advised to circulate the revised agreement with other beneficiary states for vetting.

The order comes in the backdrop of the Supreme Court recently allowing the Gujarat government to modify the agreement in line with the bailout package recommended by a panel set up under former SC judge, Justice R K Agrawal.

The SC also said the two consumer interest NGOs — Energy Watchdog, which was the original applicant in the 2017 Supreme Court case challenging tariff hike – and Prayas could seek redressal from a suitable appellate forum. The rescue panel was set up after the SC struck down higher tariff in April 2016. Read More

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