Gujarat asks Adani Power to resume supply

Rutam Vora Ahmedabad | Updated on January 12, 2018

Action to be taken if supply is not re-started, says official

The Gujarat Government has served notice to Adani Power Ltd asking it to resume power supply as per agreed terms.

According to top sources in the Gujarat Urja Vikas Nigam Ltd (GUVNL), parent body of the four discoms in the State, APL has been issued notice asking it to resume the suspended supply failing which an action can be taken under the provisions of the PPA signed with the government.

“So far, we have issued notice (to Adani Power) asking them to re-start the discontinued power supply. However, they still have adequate time to do it and fulfil the required minimum committed generation for the year. But if they fail to fulfil the minimum committed generation, then some action can be initiated,” said a top official. A query sent to company remained unanswered, till the time of going into the press.

APL had suspended supplies to State discoms stating that the higher imported fuel costs at the Mundra Power Plant hurt its financial viability.

Promised supplies

According to the State Load Despatch Center (SLDC), the APL's Mundra Power Unit supplied only 750 MW against the 2,000 MW promised under two separate PPAs each for 1000 MW.

Adani had promised to supply power at the levelised tariff of ₹2.35 per unit for a period of 25 years.

APL has not increased its supplies ever since it started phased suspension of power supply from April. Earlier, the Supreme Court had set aside a decision of the Central Appellate Tribunal for Electricity, thereby denying ‘compensatory tariff’ to private power producers, Tata Power and Adani Power, which faced increased cost of imported coal from Indonesia.

Tata Power arm Coastal Gujarat Power Ltd (CGPL) supplies about 1,078 MW of the 1,800 MW promised under the PPA from its Mundra Ultra Mega Power Project (UMPP). “From CGPL we are not getting almost 722 MW. But they have not complained about the higher coal price issue. They have technical issue at their units, which are shut for maintenance. They can't be placed at same level as Adani,” said a source at GUVNL.

On the power supply issue, a Tata Power spokesperson said, “Mundra UMPP has been supplying power to its various procurers as per the PPA including state of Gujarat. We are not aware of any such notification as we don't have any supply issues and we have never stopped supplying as is being alleged."

Published on June 09, 2017

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