State Energy Minister Kanu Desai stated that the government purchased 11,596 million units of electricity for Rs 8,160 crores in 2021-2022 from Adani Power. The answer was in response to AAP MLA Hemant Ahir’s questions in the state assembly. In the reply, the minister also stated that the charge was revised month-on-month in the range of Rs 2.83-Rs 8.83 per unit.
The state government had signed an agreement with Adani Power Ltd to purchase power at a tariff rate of Rs 2.89 and Rs 2.35 per unit for 25 years stated the minister. He also added that the state government revised unit rates due to an increase in the cost of imported coal.
The state government increased its purchase by 7.5% from Adani Power from 5,587 million units in 2021 to 6,007 million units of electricity in 2022. The increase in purchases from the power company continued despite higher tariffs charged by the company.
The state government and Adani Power have signed supplementary agreements over the years, gradually increasing the rates. The government’s committee approved the increase in power prices in 2018, on the basis that coal sourced from Indonesia has had an “unscheduled increase in prices” post-2011. Adani power and the government signed another agreement in 2021 to accommodate for the further increase in global coal prices. According to a report in Scroll, the state government has increased the Fuel and Power Purchase Price Adjustment charges, which impacts the consumer’s electricity bill, by at least 8 times.
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