Tensions flared in the Gujarat state assembly as Congress party legislators staged a dramatic walkout on Tuesday, protesting against the state government's alleged favoritism in power purchase deals. Accusations were leveled at the government for reportedly overspending by over Rs.8000 crore in two years, sparking a fiery exchange between opposition leaders and government officials.
The Gujarat state assembly witnessed a stormy session on Tuesday as Congress party legislators, comprising fifteen members, walked out in protest against what they claim to be preferential treatment in power purchase agreements by the state government. The contentious issue revolves around allegations of the government paying significantly more than the agreed-upon rates, resulting in substantial financial losses to the state exchequer.
Amit Chavda, the Anklaav constituency legislator and leader of the Congress party in Gujarat, spearheaded the opposition's stance during the heated debate on the budget. "The Gujarat government's unwarranted favoritism towards private players, particularly Adani Power, has cost the state exchequer over 8000 crore rupees in the last two years alone," asserted Chavda.
According to Chavda, the Power Purchase Agreement (PPA) signed with Adani Power in 2007 stipulated rates of Rs. 2.89 per unit and Rs. 2.35 per unit through Bid-1 and Bid-2 respectively, over a 25-year period. However, government records reveal consistent payments exceeding the agreed-upon rates, with an approximate difference of rupees 5 per unit, raising concerns over financial mismanagement.
Gujarat energy minister replies
Responding to the allegations, Kanu Desai, the Gujarat energy minister, provided insights into the factors influencing the state's power procurement decisions. "Gujarat's increasing per capita consumption, driven by rapid industrial expansion, necessitates a substantial power supply," stated Desai. "The rise in coal prices due to international market fluctuations, coupled with changes in import regulations, has contributed to the escalating costs of power generation."
Desai emphasized the government's commitment to diversifying its energy portfolio and reducing reliance on private players. "We are actively transitioning towards renewable energy sources, with contracts signed for around 15000 megawatts of solar and wind power," Desai affirmed. "This initiative aims to secure power at competitive rates, around rupees 3 per unit, thereby mitigating financial burdens on the state."
While the government's explanations attempt to address concerns over power procurement practices, opposition leaders remain skeptical, calling for greater transparency and accountability in state expenditure. The walkout staged by Congress legislators underscores the deep-seated tensions surrounding the issue, highlighting the urgent need for comprehensive reforms to ensure prudent financial management in Gujarat's energy sector.
