U.P. power deal with Adani faces criticism over cost concerns
LUCKNOW, May 7 -- Power employee and consumer bodies condemned the Uttar Pradesh government's approval for long-term power purchase from the Adani's thermal plant proposed to be set up in Mirzapur, claiming the purchase cost was expensive.
The Uttar Pradesh Vidyut Karmchari Sanyukt Sangharsh Samiti, an umbrella body representing several power engineer and employee organisations, alleged that the government had signed a highly expensive power purchase agreement with Adani Power for its upcoming project in Mirzapur.
"According to the agreement, Adani will supply electricity at Rs 5.383 per unit for 25 years - significantly higher than the current rates from state-run thermal plants in Anpara: Rs 2.816/unit from Anpara A, Rs 2.502/unit from Anpara B, and Rs 3.574/unit from Anpara D," Samiti leader Shailendra Dubey said.
He further alleged a conflict of interest, claiming that Grant Thornton, the transaction advisor appointed for privatising Purvanchal and Dakshinanchal power distribution companies, also serves as a consultant to Adani Power. "This clearly indicates a ploy to benefit private players at the cost of the common man," Dubey alleged.
UP Rajya Vidyut Upbhokta Parishad chairman Awadhesh Kumar Verma also raised questions over the signing of the MoU with the Adani Power.
"The Cabinet's approval to the proposal to purchase 1,500 MW of power from Adani Power at Rs 5.38 per unit through the bidding route is a loss-making deal for consumers in Uttar Pradesh. The project includes a fixed cost of Rs 3.72 per unit, which will remain unchanged for the next 25 years, leaving no scope for any reduction," he said....
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