Guj to buy 3K Mw from Adani, Essar

The state government will buy power from Adani and Essar at Rs 2.35 per unit to Rs 2.89 per unit.

"This arrangement is for a period of 26 years. As per the agreement, which was signed a few months back, the companies will not be able to alter the rates under any circumstances. Both the companies have their mines as well as the requirement infrastructure to supply power at such competitive rates," said a senior government official.

Of the 3000Mw, the state will start getting 1000Mw by the end of 2009. The state government will gain a great deal as a result of this arrangement, he says.

"This perhaps for the first time that Gujarat has tied up for power at such a competitive rates with private companies for such a long period," he said.

Gujarat's present installed capacity is over 9,000 Mw against the unrestricted power demand of 11,500 Mw, resulting in a deficit of 2,500 Mw.

As per the 16th Electric Power Survey (EPS) carried out by the Central Electricity Authority (CEA), the demand is likely to grow to over 14,000 Mw by 2012. The state would require an installed capacity of 18,700 Mw by 2012 to meet the growing power demand. The state government has planned to add 11,164 Mw by then, say sources.

Leading power companies, including Essar, Adani, Torrent, and government-owned companies like GUVNL, are already on way to create power infrastructure to generate additional 11,164 Mw. This would take the total installed capacity of the state to 20,000 Mw by 2012. However, according to the EPS survey, the state's peak demand would be 18,500 Mw by 2017.

In the upcoming Vibrant Gujarat Global Investors' Summit, MoUs for five power plants (5350Mw) are likely to be signed.