Little relief for power-short Gujarat from private supply

MUMBAI: The power-hungry Gujarat may have to live with partial load-shedding and power cuts. Gujarat Urja Vikas Nigam’s (GUVNL) efforts to source 2,000mw power has yielded just four proposals from JSW Energy, Jindal Power, Adani Group and Jaiswal Nico, adding up around 1,100mw.

JSW has expressed its willingness to supply 250 mw at Rs 3.49 per unit, while Adani is ready to supply 500mw at Rs 3.70 per unit. Jindal and Jaiswal have quoted 150mw and 190mw for Rs 3.48 and Rs 3.25 per unit, respectively.

Sources close to the development said the state is in an urgent need of almost 2,000mw power due to the fast-paced industrial growth. “Many players have approached GUVNL and quoted competitive prices. GERC will fix power tariffs under the Electricity Act (2003) and a decision is expected soon,” said sources.

Recently, the state had announced a more liberal policy over captive power, under which it would buy surplus electricity at 30% premium, if the fuel used was either lignite or gas. The groups, which are using captive power plants, have also approached GUVNL.

GERC had announced new tariffs for purchasing power from wind energy power projects at Rs 3.37 per unit recently. Gujarat Energy Transmission Company (GETCO), a distribution licensee wing of GUVNL, will be purchasing power generated by various wind power projects in the state. As per the recent allocation made by the power ministry, more than 25% power generated from the 1,000mw Stage-III Vindhyachal super thermal power station in Madhya Pradesh is also going to GUVNL.

On the generation front, the Torrent Group, which has a Rs 2,000 crore power business in Ahmedabad and Surat, is looking at potential investments. The Gujarat State Electricity Corporation (GSEC) is also setting up a 500mw imported coal-based power plant at Sikka Port. The Adani group is also planning to foray into the power sector.