GUVNL, banks sign PPA for 1900 MW mega power project at Mundra

Ahmedabad, Nov 29 (UNI) A unique Power Purchase Agreement (PPA) for 1900 MW was today signed by the Gujarat Urja Vikas Nigam Ltd (GUVNL) and 15 bankers, who will secure guarantee payment to the sellers.

The default Escrow Agreement, signed in the presence of Chief Minister Narendra Modi at Gandhinagar, was for an ultra mega power project at Mundra in the Kutch district, according to an official release here.

The costal Gujarat Power Corporation (GPC) has initiated the development for an ultra mega power project at Mundra of total 4,000 MW power generation based on imported coal. The state will purchase 1900 MW through GUVNL, The cost of the project will be Rs 20,000 crore. Tariff will be determined through transparent policy of competitive bidding process, the release said.

Mr Modi said since huge flow of industrial investment was coming to the state, requirement of power was correspondingly increasing by 8 to 10 per cent annually. The PPA of 1900 MW would give a boost to strategic energy management.

Referring to the reduction in central sector power of 200 MW and the same being unilaterally allocated to Maharashtra from the original share of Gujarat, he said it was a matter of serious concern as it did grave injustice to the people of Gujarat in general and farmers in particular, who had suffered repeatedly in recent times on account of unfair decisions by the Centre.

The Chief Minister also demanded restoration of the state's original share immediately. Moreover, the decision of the Centre to connect Gujarat-grid with Northern-grid, has caused a widespread under-frequency trippings for the farm sectors and discontents in the agriculture consumers of Gujarat without any fault of the state government.

Those present on the occasion were Minister of State for Energy Saurabh Patel, Gujarat Chief Secretary Sudhir Mankad, Secretary, Ministry of Power, Government of India, Addl Secretary, Ministry of Power, GoI, Director, Secretary, Ministry of Power, Government of India, Chairman&Managing Director, Power Finance Corporation Ltd, Principal Secretary, Finance Department, Government of Gujarat, Principal Secretary, Energy&Petrochemicals Dept, Government of Gujarat, Chairman&Managing Director, GUVNL, Director (Admn/Fin), GUVNL, officials of Dena Bank, State Bank of Saurashtra, Central Bank of India, Indian Bank, Canara Bank, Allahabad Bank, Karur Vysya Bank, Vijaya Bank, Bank of Baroda, State Bank of India, Bank of India, Syndicate Bank, Indian Overseas Bank, UCO Bank and Union Bank.

UNI VNB SSS AW2015