Gujarat scrap the order to make payment for more power, Tata, Adani and Essar badly affected

Gujarat government has recently altered its earlier decision to revise power purchase agreements amounting to 7180 megawatt. This decision is acting as a major setback to Adani Power, Tata Power Mundra, and Essar power.
The earlier decision that allowed these developers to charge terrace at a higher level is now withdrawn. Now, power purchase agreements will be signed with these developers on a case-by-case basis over and above the existing agreements. The previous issue resolution was given out in November 2018 after a high powered committee was formed by the state government that suggested new terms of the agreements with cost increment devised to be shared among consumers, project developers, and the lenders.
The government now said that the alteration and conventional power situation in terms of reduction in gold prices as well as the supplementary PPAs are the reason behind this decision for increased tariffs became unviable and unreasonable for the government.
The new notice by the state declared a deals to be signed Essar power while the supplemental PPA with Tata Power still waiting for a state government approval. Contract with Adani power is pending with the central electricity regulatory commission. This decision by the Gujarat government was made 7 days after the Maharashtra government give permission to allow revised tariffs for coastal Gujarat Power.
Tata power in its annual report clearly mentioned that as per the legal opinion received by the company, even when Mundra gets to supply power as per the tariffs decided through the competitive bidding strategy to five states under only one agreement, in order to ensure the HPC recommendations, CGPL can enter into separate supplemental PPAs with each procurer. The government of Gujrat has also formed the HPC with the aim of devising a relief plan for the imported coal-based plants in its region.