Gandhinagar, 4 May 2012

Chennai’s auto companies function on power supplied by Gujarat at present, but soon Bangalore’s IT companies will also run on Gujarat power.

Southern Indian state Tamil Nadu had tied up with Gujarat Urja Vikas Nigam Limited (GUVNL) through a long-term contract for supply of power at the rate of Rs 3.85 per unit, term of which is going to end on 1st May.

From 1st June onwards, GUVNL will start providing 500 MW power to Karnataka at a unit cost of Rs 4.00.

Gujarat has to use the southern corridor for power supply to southern state. The corridor has capacity to carry only 500 MW power at the maximum.

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