State paid Rs 8.2k crore in excess to Adani Power: Congress

GANDHINAGAR: The Congress on Tuesday alleged that the Gujarat govt paid Rs 8,200 crore in excess to Adani Power in electricity purchase charges in two years which it dubbed “favouritism” and later walked out from the assembly on the issue. The claim was dismissed by the power minister, Kanu Desai, who cited the rise in coal purchase costs.

During question hour, Congress MLA Tushar Chaudhary sought to know the rates at which the govt bought electricity from Adani Power Ltd during 2022 and 2023.

In his reply, Desai said electricity is purchased according to the “merit order” system which was introduced by the former Congress-led UPA govt.

“The state govt entered an agreement with Adani Power in 2007 to buy power at Rs 2.89 per unit under Bid-1 and at Rs 2.35 per unit under Bid-2 for 25 years. Such power purchase agreements were also signed with two other private players, Tata Power and Essar Power,” Desai said in a written reply.

Since these thermal power generators were dependent on imported coal from Indonesia, they went into trouble and shut plants after coal prices shot up exponentially after 2021, the minister stated, adding that revised agreements were signed in 2018 and 2022 to adjust the rise in coal purchase cost.

Congress MLA Amit Chavda said that against an average energy charge of Rs 2.62 per unit agreed upon in 2007 for 25 years, the state govt paid an average of Rs 7.18 per unit in 2022 and Rs 5.33 in 2023.

“Despite the agreement, the govt paid Rs 8,265 crore more... Eight years are left for completion of 25 years. Are you planning to review your decision and sign a new agreement with Adani?” asked Chavda, who demanded that the govt recover the “additional Rs 8,265 crore” and invest it in state-run power generators.

Desai said Adani was not given preference because electricity was also purchased from other private players according to the GERC's merit order, a system introduced when Congress was in power.

Another Congress MLA, Shailesh Parmar, asked why state-owned units are unable to produce enough electricity though the state’s installed capacity has increased.

Desai said power is purchased from private players and other sources because the efficiency of state-owned units is less in comparison to others as they have become old.


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