Congress questions transparency of GSPC-GeoGlobal deal

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.

Speaking on the demands of power, mines and petrochemicals in the assembly today, Gohil alleged that the state government had given away 10 per cent to crisis ridden Canadian firm without receiving a single penny.

"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.