After representations made by private power generators, the Gujarat government has formed a three-member committee, headed by former Supreme Court judge Justice R K Agarwal, “to suggest early resolution” to issues faced by imported-coal-based power plants owned by Adani Power, Tata Power and Essar Power.
The committee will have former Deputy RBI Governor S S Mundra and former chairman of CERC Pramod Deo as its two other members. The committee is expected to submit its recommendations in two months and will be assisted by NTPC and SBI Capital Markets Ltd.
The committee was formed after a “series of meetings and discussions”, wherein in “it was decided by all the procurer states that Gujarat being a lead procurer should initiate action for resolution of the issues related to these projects”, sources said. The order comes as a relief for the three private power producers who had been in the bind after the Supreme Court set aside an Appellate Tribunal for Electricity’s decision that allowed Adani Power and Tata Power to charge compensatory tariff against the increased cost of coal imported from Indonesia.
Last year in June, Tata Power had offered to sell 51% of it’s stake in Coastal Gujarat Power Ltd (that operates the 4000 MW Mundra power plant) for a token sum of Rs 1 to discoms. Similar offers were also made by Adani Power for it’s 4620 MW power plant at Mundra and Essar Power for it’s 1320 MW power plant at Salaya.
The committee has also been asked to suggest measures “for overall reduction in the cost of generation of power in the interest of the consumers.”