Gujarat Urja Vikas Nigam Ltd (GUVNL) has put Adani Power out of race to supply power to the state PSU through competitive bidding. The state-run power company has disallowed Adani's technical bid on the grounds that it does not provide confirmed document with regard to souce of fuel.
Adani Power was one of the eleven companies, who had bid for supply of power on long-term basis to GUVNL. The private sector power company has been declared as "non-responsive" as it could not furnish confirmed document of fuel source.
"As result, the company is out of race for supplying 3000 Mw of power to GUVNL," said senior government officials closely associated with the bidding process.
The decision with regard to Adani Power was taken during the evaluation of technical bids last week. When contacted, Adani Group officials did not comment on the issue. A total of 11 power firms had submitted their financial as well as technical bids in response to GUVNL's offer to supply it 3000 Mw of power.
"Out of 11 players, Adani is the only company which could not made it to the second round of the bidding," the sources added.
The other players who had bid include Essar Power, Jindal India Thermal, Shapoorji Pallonji, Chennai-based company OPG, MP Power, Avantha Power, Pipavav Energy, KSK Energy's subsidiary Vardha Power and TRN, a subsidiary of Aryan Coal.
In June last year, GUVNL had invited proposals for procurement of 3000 Mw of power with an option to increase or decrease 20 per cent of offered quantity depending upon the price quotes by bidders.
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Meanwhile, Adani Group's notice to GUVNL seeking termination of a long-term power purchase agreement (PPA) inked with GUVNL in 2007 for supply of 1,000 Mw is pending with Gujarat Electricity Regulatory Commission (GERC).
The PPA was signed following a competitive bidding and Adani group had committed to supply power at Rs 2.35 per unit for 25 years.
GUVNL has recently completed the evaluation of technical bids for 3000 Mw of power supply and financial bids are likely to be opened soon.