The power of private companies is cheaper than the power of the Gujarat government

Gandhinagar, 20 March 2020
The state’s power plants are old. This means that it costs Rs 5.43 per unit of electricity generation. Against which it buys power from private companies for Rs 3.08 and gives it to the customers.

The rate of electricity per unit was Rs 5.04 per unit in the year 2019 by Gujarat State Electricity Corporation Limited (GSECL). 18,332 million units were purchased at this price. In the year 2020, 17,194 million units were purchased at the rate of Rs 5.43.

32980 million units of electricity are purchased.

Electricity is purchased from four big companies and 596 private companies in the state.

The state government buys power in four main ways: from the central government, from various power plants of the state government, from a private company and through an open exchange system.

Gujarat Energy Development Corporation Limited (GUVNL) understands the energy needs of the state by seeking competitive prices, power purchase is done as per the “standard bid document” as per the central government guidelines.

The power plants of government companies are 20 to 25 years old and their efficiency is low. As a result, private power companies can generate more electricity at cheaper rates than state-owned power companies, power Minister Saurabh Patel said.