In a not so surprising move, the Gujarat Government after paying out a huge amount in fixed tariff for its 670MW commissioned plants is looking to change tariffs to be in line with the existing norms.
It has offered approx. Rs. 9 fixed for the life of the plant and is enticing developers by adding in some sops. The argument put forward by the Gujarat government is windfall gains by developers due to reduced costs of deployed against which the equity returns were calculated.
A reaction is awaited from the existing commissioned developers who may not take this lying down and are contemplating various courses of action.
Will keep you posted on updates