Gujarat Shelled Out Rs 20,500 Cr To Private Electricity in 2022, Tata, Adani Power Get A Lion's Share

The Gujarat government made a payment of Rs 20,500 crore to private companies in 2022 for electricity. This was stated in the assembly records of the ongoing budget session. It further said that nearly 75 per cent of the humongous amount was paid to Tata, Adani and Essar groups.

The assembly records added that the hike in the cost of electricity bought from the three companies of more than Rs 8,700 crore was paid to the private entities in 2022, compared to Rs 11,800 crore in 2021. The total average cost of electricity bought from the private players rose by 32 per cent from Rs 3.97 per unit in 2021 to Rs 5.25 in 2022.

According to reports, Essar Power Gujarat recorded an increase of  225 per cent from Rs 1.49 in 2021 to Rs 6.32 in 2022. Adani Power Mundra marked an 85 per cent jump in the cost of electricity under one electricity unit purchase for Rs 6.91 in 2022 as against Rs 3.74 in the previous year. Subsequently, the cost of electricity from Coastal Gujarat Power (a subsidiary of Tata Power) rose by 75 per cent to Rs 4.92 in 2022.

While the state government paid more than Rs 7,300 crore to Tata Power and its subsidiaries for the electricity purchased last year, the Coastal Gujarat Power accounted for Rs 6,038 crore of payments made in 2022. Electricity was also purchased from Tata Power Renewable Energy, Tata Power Trading Company, Tata Power for Rs 357 crore, Rs 924 crore and Rs 13 crore respectively.

The other electricity purchase of the government includes Rs 6,900 crore from Adani Group companies, including Adani Power Mundra, Rs 5,491 crore, Adani Enterprises, Rs 1,214 crore, Adani Solar Energy Kutch Rs 164 crore and Adani Wind Energy, Gujarat in 2022.

Meanwhile, Essar Power Gujarat sold a sizeable amount of power to the state in 2022.