Ahmedabad: In a sign that the power crisis may not end, the Gujarat government has permitted Gujarat Urja Vikas Nigam Ltd to continue buying power from the strength of Adani Tata and the power rate of 4.5 per kilowatt-hours (kWh) for two more months.
Coastal Gujarat Power Ltd., a subsidiary of Tata Power and Adani Power Mundra Ltd., has signed a long-term power purchase agreement with Guvnl to supply 1,800MW each and around 1,200mW from their imported coal-fueled electricity projects in Mungra.
The company recently stopped supplying power to GUVNL at a contracted level, citing the increase in imported coal prices over the past few months that have made their projects unused.
In mid-October, when the stock of coal held by the country’s power plant was very low, the Gujarat government agreed to buy power from CGPL and Apmul at a fixed cost of Rs 4.5 per kWh or unit.
“Previous time limits until November 5 Department of Energy State have recently extended the approval for contract power taking at fixed energy costs of 4.50 per kWh and capacity costs according to the PPA and additional PPA as temporary temporary arrangements for the period until December 30, As requested by Guvnl, said sources in the state government.
“GUVNL has enabled the company to supply with revisions for other months.
The final decision about whether to provide further extensions or will not be taken later depending on the country’s power scenario, “said other government officials.
According to PPA with Power and Adani Power, energy costs remain less than Rs 2.50 per kWh, according to the source.
“The price of Indonesian coal, which is a major concern for coal power plants imported in the country, has risen from $ 80-90 per ton to more than $ 200 per ton recently.
They now show signs of cooling, “said an industrial expert In October when it reached 20-25% of the demand for state power on a few days.
In October, GUVNL bought around 4,000 MW of power per day worth 1,931 crore from Indian Energy Exchange (IEE), the state electricity trading platform, with an average Weighted Rs 9.69 per KWh, according to iEX data.
In comparison, he bought power worth 1,035 crore from the exchange for September.
“The country’s power bill from IEE began to fall from mid-October, after returning to buying power directly from Tata and Adani,” Source said.
Tata Power and Adani Power officials declined to comment.