Congress’s allegations on power purchase deals baseless:Gujarat minister narrates how

Congress’s allegations on power purchase deals baseless:Gujarat minister narrates how
By our correspondent
Gandhinagar, DeshGujarat, 12 March, 2010





Following is a statement of Gujarat Minister of state for Power and Industry Shri Saurabh Patel in Gujarat assembly in answer to Congress leader Arjun Modhwadia’s allegations on power purchase deals:

Gujarat government is pro-farmer government which would continue to purchase power for farming sector’s need.

In 2008-09, later part of the monsoon was delayed, because of which the government had to purchase power. Power is a commodity that can’t be stored. The government purchased power under Central government’s guideline stipulated by CERC. The centre has permitted 44 agencies for selling and purchase of power. Gujarat purchased power from them only by carrying out a transparent method of approving a tender offering lowest price.

In year 2008-09, the state purchased 988 million unit of power and in 1009-10 we purchased 53 mullion unit power on short term bases. Most of the power was purchased between July to September with an intention to rescue standing crop in fields. Tenders were floated for short term power purchase but the central government units quoted the highest prices per unit. In July – 2008 while Adani Enterprises quoted a price of Rs 5.14 per unit, central govt’s NTPC quoted Rs. 12.55. While NTPC continued this rate in August and September also, the Adani Power quoted Rs 5.14 and Rs.6.99 per unit in respective months.

Not only this, but Adani Enterprises supplied power to Gujarat at cheaper rate compare to rates on which it supplied power to Delhi(Rs6.70 in 2009-10), Maharashtra(Rs7.42 in 2008-09 and Rs7.28 in 2009-10), Rajasthan(Rs8.48 in 2008-09 and Rs6.72 in 2009-10), Uttaranchal(Rs 6.75 in 2009-10) and Andhra Pradesh(Rs7.75 in 2008-09)

On long-term power purchase, the minister said in year 2008-09 the state purchased total 54782 million unit power of which 16371 million unit power was purchased from central government units. Of this NTPC Kawas quoted the highest rate of Rs 6.86.

The minister said, “there is no such rule exists suggesting that power could not be purchased from anyone other than power producer. Who can do Power deals is decided by central government. The states only follow it. In 2008-09 Gujarat purchased only 1.78% power and in year 2009-10 the state only purchased less than 0.12% power. Compare to this the other states like Andhra Pradesh, Maharashtra, Delhi, Tamilnadu – that are ruled by Congress government – purchase power paying higher rate not only in emergency situations but also generally.

Gujarat is the only state where thanks to Jyotigram scheme, every village enjoys round the clock power. Not only this, but the state of Gujarat also sells power to other states. When there is lower demand of power at home-front we actually sell our power to other states. In year 2008-09 the state of Gujarat purchased 988 million unit power and supplied 755 million unit power to other states. We sold power to Delhi(Rs 7.73 per unit), Maharashtra(7.75), Rajasthan(6.78), Tamilnadu(8.86), Andhra Pradesh(7.78), this means the average selling rate was Rs 7.81.

At the same time, the state of Gujarat purchased power at following rates:NTPC Power trading corporation ltd(Rs6.54 per unit), Adani Enterprises(Rs6.27), Reliance Energy(Rs7.37), Tata Power(Rs9.28), Lanko Ele. Utility(Rs4.29), Kalyani Power(Rs8.41),GSW(Rs7.13),Power Exchange(Rs8.19).

Thus Gujarat has become a power surplus state without halting power supply. The state had to purchase power only for farmers due to delayed rain. The opposition leader should stay away from political observations and should accept the success of Gujarat’s power sector.

‘It was the Gujarat govt which went to GERC against Adani’