UP cancels 'costly' power agreements inked by SP govt

While average power price in country has gone below Rs 3 a unit, UP sources power at higher rates

The Yogi Adityanath-led Uttar Pradesh government has cancelled the long-term power purchase agreements (PPAs) for 3,800 megawatts (Mw) as the cost of power under these pacts was higher than the spot market prices, official sources said.

The previous Samajwadi Party government signed the 15-year contracts with Jindal Power, JP-Nigeri, Lanco, Adani Power, GMR and JSW. Against the 3,800-Mw demand, the SP government had received bids for 6,652 Mw in the price range of Rs 3.9-5.5 a unit. The state was currently procuring 3,882 Mw at Rs 4.06 a unit.

Business Standard reported last week how the power distribution companies in