Gujarat to seek SC stamp on rescue plan for Tata, Adani, Essar power plants

NEW DELHI: The Gujarat executive and its discom, Gujarat Urja Vikas Nigam Ltd, will on Friday search the Supreme Court’s consent for implementing a plan permitting the Tata, Adani and Essar groups to move on greater gas costs of their imported coal-based power stations within the state that have been doddering under mounting losses as shopper states refused to pay higher tariffs.

The move follows the plan proposed final month by a panel under former SC judge, Justice RK Agrawal. The state executive had arrange the panel to suggest techniques to pull the 3 power plants in question -- with mixed PPAs (power acquire agreements) for over 8,000 MW and exceptional money owed in way over Rs 22,000 crore -- back from the financial brink.

The advice of the panel, with former RBI deputy governor SS Mundra and retired Central Electricity Regulatory Commission chairman Pramod Kumar Deo as contributors, has the potential to provide shoppers in Gujarat, Maharashtra, Rajasthan, Punjab and Haryana tariff shock by striking an estimated mixed burden of Rs 1.29 lakh crore over 30 years.

The panel has additionally instructed extension of PPAs and haircut by lenders, which could lead to an estimated hit of Rs 18,000 crore for them. Besides, a sharply depreciated rupee will make imported coal even costlier and put additional burden on shoppers.

No surprise the state executive is playing protected by searching for SC’s consent since the court had in April final 12 months struck down regulatory rulings permitting tariff hikes to compensate the promoters for greater gas costs. Ruling within the case filed by the consumer states, the court had said power firms can’t carry preset tariffs if gas turns into costlier because of adjustments in rules overseas.

Tata and Adani groups had sought after to move at the difference in gas costs after the Indonesian executive issued new regulations in 2010 that raised coal value. Unable to sustain operations at full capability because of ballooning debt, the promoters lowered provides and final 12 months offered to sell 51% stake within the tasks for Re 1 to the Gujarat executive. The state has PPAs for four,800 MW from those tasks.

After lenders sounded alarm bells, the Centre stepped in as facilitator. State-run NTPC conducted a technical learn about. But nothing came of this exercise.
Gujarat to seek SC stamp on rescue plan for Tata, Adani, Essar power plants Gujarat to seek SC stamp on rescue plan for Tata, Adani, Essar power plants Reviewed by Kailash on October 11, 2018 Rating: 5
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