A day after the Gujarat government revoked a 2018 order allowing higher tariffs to three private power producers, one of the trio, Tata Power on Friday stated the decision will not have any impact on the company’s ongoing discussion with the state for a “supplemental Power Purchase Agreement (PPA).”
In a statement issued in Ahmedabad, the company stated that it is “examining all aspects of High Powered Committee’s (HPC) terms in view of the latest low imported coal prices and its long term trends. It may be noted that based on legal opinion, the Gujarat government has also agreed that separate supplemental PPA can be finalised with Coastal Gujarat Power Limited (CGPL) — a subsidiary of Tata Power — instead of composite common PPA, which was envisaged earlier with all the five states.”
“The amendment to the PPA with CGPL will still be considered with High Powered Committee conditions although with few additional conditions…,” the company added.
On Thursday, the state government had revoked a 2018 order which had granted relief in tariff to Tata Power, Adani Power and Essar Power that were adversely affected by the high prices of Indonesian coal. Revoking the order, the government pointed out that the international coal prices have fallen and the step was being taken in public interest.
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