Demands blacklisting of Adani Power

Attacking ruling BJP government in the state for offloading 10 per cent share of Gujarat State Petroleum Corporation Ltd (GSPC) to Canada-based GeoGlobal Resources, Shaktisinh Gohil, leader of opposition, today alleged that the state government offered the share without following transparent process.

Click here for Cloud Computing

Also Read   Related Stories News Now - RS adjourned twice as BJP, AIADMK, Left create uproar - Trouble in BJP over Women's Bill, party decides to issue whip - Withdraw support, write to Prez: BJP to RJD, SP - Chhattisgarh MLAs to reveal assets - Govt took 'huge risk': Sonia - After RS passage, govt to pause before any Lok Sabha push

Also Read   Related Stories News Now - Markets end higher on firm global cues - Balwa pursued 2G licence issue of Swan: witness - Murdoch to launch new British Sunday tabloid - Charge one-time fee on extra spectrum on prospective basis: DoT - Reddy to visit RIL gas fields amid controversy on output dip More

"The principal amount of Rs 375 crore and its interest is due to GeoGlobal but the foreign company has paid nothing," he claimed.

He also contended that there was a condition in the agreement that any dispute would be settled in arbitrage in London, which showed malafide intentions.

Modi government also drew flak from opposition in the wake of private sector firm Adani Power seeking termination of long-term power purchase agreement (PPA) with the state government.

Demanding that the state government should "blacklist" Adani Power, leader of opposition alleged that after three years of signing PPA, Adani sought termination of the agreement without any valid reason. In 2007, the private power firm had inked PPA with state-run Gujarat Urja Vikag Nigam Ltd (GUVNL) to supply 1000 Mw every year for 25 years at Rs 2.25 per unit.

"The petition filed with Gujarat Electricity Regulatory Commission (GERC) states that Adani Power could gain Rs 11826 crore to Rs 19810 crore by scrapping the PPA," he claimed.

Terming the allegation with regard to GSPC as "political observation", Saurabh Patel, minister of state for energy and petrochemicals, said that Gohil's claims are baseless. In case of Adani Power-GUVNL dispute over PPA, the minister informed, "GUVNL has knocked the doors of GERC against the intension of Adani Power to end the agreement."

"Power to decide on PPA has been given to GERC by Centre government led by Congress," Patel quipped while lashing out opposition leader for his remark.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end higher on firm global cues - Balwa pursued 2G licence issue of Swan: witness - Murdoch to launch new British Sunday tabloid - Charge one-time fee on extra spectrum on prospective basis: DoT - Reddy to visit RIL gas fields amid controversy on output dip

Tags : BJP | GSPC | Shaktisinh Gohil | power purchase agreement | Adani Power | GUVNL   Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  Medium-sized businesses are the engines of a smarter planet. -  Office 365 for professionals and small businesses. -  Earn fuel worth Rs.2400 with Citi -  India's No. 1 Property Site. Click here to know more.. -  Diseases earlier, Saving Costs, Extending Lives. Know More.. -  Get 5% cashback on telephone bills with Citi -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more