Gujarat government asks discoms to revise PPAs

The Gujarat government has issued an order to the state discoms to raise tariffs of the three imported coal-based power plants owned by Tata Power, Adani Power and Essar Power in Gujarat in line with the recommendations of the high-level panel. The state government has asked the discoms to revise their power purchase agreements (PPAs) and seek regulatory approval for the same. The revised PPAs will entail a pass-through of the higher cost of coal to the consumers. The amended PPAs will be circulated among the other beneficiary states as well for cabinet approvals.