GUVNL vets proposals to take over imported-coal power plants

State-run Gujarat Urja Vikas Nigam Ltd (GUVNL) is evaluating proposals to take over majority stake in the imported coal-based power plants of Tata Power, Adani Power and Essar Power.

The three companies running imported coal-based plants in Mundra and Salaya were suffering losses due to disallowance of compensatory tariff to insulate these firms from higher coal prices in Indonesia due to change in regulation.

In a desperate measure, these companies had even offered GUVNL to take over majority stake in these power plants at a token consideration of Re 1 only.

There was a buzz that the Gujarat government had shown disinterest to take over these plants for a token consideration as it would be politically incorrect step in view of forthcoming assembly election in the state this year.

"These proposals are still under evaluation," a source in the GUVNL said.

Earlier on the issue, Power Minister Piyush Goyal said here was a lot of discussions about "what would happen to these plants and to the availability of low-cost power to some other states. Nothing has come out as yet".

"I had suggested that these imported coal-based plants may also look at technical solutions to try to use more domestic coal because under SHAKTI scheme we would soon come out with a policy which will allow imported coal-based plant to bid for domestic coal," he added.

The companies running these power plants have already cut supplies to the tune of 2,550 MW to Gujarat. The companies had inked power purchase agreements with the state for supply of power. But higher prices of imported coal made it unviable for these firms to operate their plants to full capacities.