Adani Power Limited (APL) has discontinued 1,250 MW power supply to Gujarat Urja Vikas Nigam Limited (GUVNL) in a phased manner, since the last week of April. “The decision was spurred by the unviability of running its power plant at Mundra on imported coal. Of 2,000 MW power provided by APL to GUVNL under different PPAs (power purchase agreement), 1,250 MW supply has been discontinued by APL,” a source said. The source further said, “The company has also intimated the state government that operating its Mundra power plant at the tariff specified in the PPA using imported coal (from Indonesia) is increasingly becoming unviable.”
Adani Power had entered a long-term PPA with GUVNL in 2007 for 1,000 MW at a levelised tariff of Rs 2.35 per unit for a period of 25 years. The Adani group supplies 2,000 MW power to Gujarat under PPAs signed at different times. The Supreme Court last month disallowed APL and Tata Power to raise power tariffs to compensate for costlier coal imported from Indonesia. The source said that Tata Power and Essar Power have also discontinued electricity supplies of 800 MW and 500 MW respectively. However the sources added that Tata Power and Essar Power have cited technical reasons for cutting supplies and not the apex court’s order on compensatory tariff. The state government is meeting short supplies of power through increase in generation from its own plants and from purchasing power from the electricity exchange (in open market).