GUVNL vets proposals to take over imported-coal power plants

New Delhi : 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 Salayawere 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.

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