Amid Coal Crisis, Gujarat Government To Buy Power From Tata

| Updated: October 16, 2021 12:03 pm

Gujarat Government is compelled to buy power at Rs 4.5 per unit which is higher than Rs.2.26 variable cost mentioned in the power purchase agreement, from Tata’s Mundra plant after Adani’s plant at Mundra and Essar Power’s plant at Salaya stopped supplying power to the state.

Amidst widespread whispers which says there is impending crisis of shortage of coal in the country which in turn will affect the electricity supply in imminent future, which the Top Union Ministers have cared to refute, it is learnt that after the prices of imported Indonesian coal doubled which was used to fuel their plants in the state, Adani and Essar Power have reduced the operations at their plants.

The decision to buy from Tata is expected to reduce the burden of buying 4000-5000 MW of electricity from the power exchanges daily.

Allaying the fears that there will be power shortage in the state before Diwali, Energy Minister Kanu Desa said Gujarat government has now decided to purchase 1800 MW of power from Tata Power’s Mundra plant in Kutch. Gujarat is forced to buy spot electricity worth Rs 150 crore daily.

Energy experts say with this decision, the burden of the state government will drop by Rs 65 crore per day from Rs 150 crore daily for purchasing electricity.

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