Won’t supply power from Feb 29 if rate not hiked: Tata to Punjab

DEADLOCK Tata Power has been supplying 475MW electricity to Punjab from its Mundra plant in Gujarat at a rate of ₹2.91 per unit

PATIALA: Gujarat-based Mundra Ultra Mega Power Plant owned by Tata Power has given a notice to Punjab government conveying that it will stop supply from February 29 if the rate at which it buys electricity is not hiked as desired.

Tata Power is supplying 475MW power to Punjab from its 4,000MW plant in Gujarat. As per the PPA, Punjab pays ₹2.91 per unit and the company had sought to revise the rate by 50 paisa per unit. The new hiked rate would have cost the state exchequer ₹200 crore annually.

Tata Power has stated that it is running into losses due to high cost of imported coal and will be left with no option but to shut operations from February 29 onwards. Gujarat, Maharashtra,

Rajasthan and Haryana also buy power from the same plant.

Tata Power Ltd. had written to the secretary (power), Punjab, in December 2018 for amending the power purchase agreement (PPA) based on the recommendations of the high-powered committee constituted by the Gujarat government, formed on the basis of a Supreme Court judgment.

In the parleys and negotiations between the two sides since, the Punjab government agreed on some revisions and relaxations, but that fell short of what the company was seeking. “We have negotiated with them, but didn’t sign any revised PPA. We can’t go as per the estimation of high powered committee of Gujarat as there was no representation of Punjab, which is the signatory of PPA,” said a PSPCL official, who dealt with the case.

In Haryana, the Congress is opposing the revision of PPA, saying that it will benefit Adani, Tata and Essar companies. Despite attempts, secretary (power), Punjab, Ravneet Kaur, could not be contacted, while power corporation CMD Baldev Singh Sran, was away to Delhi for some official work.

However, PSPCL officials in the know of the issue said they were prepared deal with the situation in case the Mundra plant stops supply.

COMPANY SAYS IT IS RUNNING IN LOSSES DUE TO HIGH COST OF IMPORTED COAL AND WILL BE LEFT WITH NO OPTION BUT TO SHUT OPERATIONS