Gujarat High Court today issued a notice to the government of Gujarat following a petition filed by Shaktisinh Gohil, leader of opposition, Gujarat Legislative Assembly. The petitioner, in a Public Interest Litigation (PIL), had challenged the Gujarat government's move to offer 49 per cent stake of GSPC Pipavav Power Company (GPPC) to Mumbai-based Swan Energy Ltd.

Gohil, in his petition, alleged that the state of Gujarat, through the Ministry of Energy and Petrochemicals had dolled out undue benefits to a company called Swan Energy Ltd. (SEL) by offering 49 per cent share holding in GSPC Pipavav Power Company Ltd to to Swan Energy.

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As per the terms of the agreement between, Gujarat State Petroleum Corporation Limited (GSPC), Gujarat Power Corporation Limited (GPCL) and Swan Energy Ltd. have shareholding of 34 per cent, 17 per cent and 49 per cent respectively.

The agreement provisioned that Swan Energy Ltd would Rs 381 crores as value of shares for 49 per cent stake in GPPC and in turn, GPPC and its other shareholders had agreed to assign 70 per cent of CERs to be generated from GPPC project to Swan Energy.

The petitioner has alleged that the people of Gujarat will incur huge loss because the agreement between GPPC and SEL, which is not coming forth on record and has been kept as a top secret. It seems further that it assigns 70% of Certified Emissions Reductions (CERs) popularly known as “Carbon Credits” to be generated from GSPC Pipavav Power Company Ltd. (GPPC).

"Outrageous as it may seem it is not SEL which is paying for its acquisition equity of GPPC but it is GSPC that is paying close to some Rs 18,000 crores to SEL through the undisclosed value of the rights to the carbon credits being transferred to SEL along with the shares of GPPC," Gohil has accused in the petition.

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