Assam to Buy Power from Adani at the Highest Rate in the Country

The entire state is plunged into grief over the mysterious death of the beloved singer Zubeen Garg. Amid this, the state government is preparing to sign the largest power purchase agreement in the state’s history with Adani Power Limited, owned by Gautam Adani, at higher rates. Meanwhile, the Assam Electricity Regulatory Commission has already approved Adani’s submission at these elevated prices. The rate at which Adani Power is set to sell electricity to Assam for the next 25 years is higher than in other states of the country. According to information uncovered by ‘The Crosscurrent‘s investigation, on October 22, the state electricity regulatory commission granted permission to purchase electricity from Adani Power at Rs 6.30 per unit. The entire process, from opening the bids to approving the power purchase, was completed in just 12 days. During this period, Adani Power has signed agreements to sell electricity at Rs 6.075 per unit to Bihar, Rs 5.81-5.83 per unit to Madhya Pradesh, and Rs 5.39 per unit to Maharashtra and Uttar Pradesh, while preparing to sell to Assam at Rs 6.30 per unit.

It is noteworthy that the Assam Power Distribution Company Limited (APDCL) had invited bids in August for purchasing 3200 MW of coal-generated electricity. The last date for bid submission was October 3, and the bids were opened on October 10. In this, Adani Power submitted the lowest bid to sell electricity at Rs 6.30 per unit. Following this, on October 15, APDCL applied to the electricity regulatory commission for approval at this rate. On October 17, during the hearing of the application, the regulatory commission noted that Adani Power had submitted a bid for supplying electricity at a higher rate. In this regard, the commission directed APDCL to contact Adani Power to reduce the rate. Notably, on the same day as the October 17 hearing, Adani Power informed APDCL that they had set a lower fixed charge for Assam compared to Madhya Pradesh and Bihar. In Madhya Pradesh, the fixed charge per unit is Rs 4.22-4.30, and in Bihar, it is Rs 4.17 per unit. In comparison, for Assam, the fixed charge per unit has been set at Rs 4.16. Supporting Adani Power’s argument, APDCL reapplied for approval at the bid rate of Rs 6.30 per unit. On October 22, after the final hearing of this application, the regulatory commission approved APDCL’s request. With this, the process of purchasing electricity from Adani Power at Rs 6.30 per unit received final approval.

An important point is that Adani Group cited Assam’s fixed charge being 1 paisa lower than Bihar’s as a reason for not reducing the rate. However, the electricity transmission fee for Assam has been set 23 paise higher than in Bihar. As a result, while the rate per unit in Bihar is Rs 6.075, in Assam, this rate has become Rs 6.30.

Allegation of Rs 62,000 Crore Scam in Bihar, How Much in Assam?

A day before the Bihar Assembly elections, former Union Power Minister RK Singh from the Modi government raised explosive allegations of a massive scam in the name of power purchase from Adani Power. According to the former minister of the Modi government, the Bihar government is set to perpetrate a Rs 62,000 crore scam by purchasing electricity from Adani Power at Rs 6.075 per unit. This scam involves ministers and many officials from the Bihar government. According to the former minister, an agreement has been signed between the Bihar government and Adani Power to purchase 2400 MW of electricity at Rs 6.075 per unit. At this rate, the Bihar government will have to pay an extra Rs 2,500 crore annually to Adani Power. In this way, over 25 years, a scam of at least Rs 62,000 crore will occur, alleged former Union Power Minister RK Singh. He demanded a CBI investigation into this massive scam, stating that he himself had calculated the Rs 62,000 crore scam. Let the CBI investigate and reveal the actual amount of the scam, arrest all those involved, and send them to jail.

Now the question is, Bihar is purchasing electricity from Adani Power at a lower rate than Assam. If purchasing 2400 MW at Rs 6.075 per unit leads to a Rs 62,000 crore scam, as alleged by the former Union Power Minister, then how much scam could occur if Assam purchases electricity from Adani Power at Rs 6.30 per unit? This has become an important question for Assam as well.

Assam to Buy Electricity from Adani Power at Higher Rates Than All Other States

Under the Government of India’s amended Energy Policy-2025, APDCL invited bids for supplying 3200 MW of electricity to Assam. Before this, Bihar, Uttar Pradesh, and Madhya Pradesh had also invited bids for coal-based thermal power supply. The only company that secured the contract for power supply through those bids was Adani Power. Following that, the same process was followed to invite bids in Assam. Five companies participated in that bid: Adani Power Limited, JSW Energy Limited, Lalitpur Power Generation Company Limited, MB Power, and Torrent Power Limited. Among them, Adani Power has secured the contract to supply coal-based thermal power to Assam at Rs 6.30 per unit. However, the same Adani Power is supplying coal-based thermal power at Rs 5.39 per unit in Maharashtra, Rs 5.383 in Uttar Pradesh, Rs 5.81-5.83 per unit in Madhya Pradesh, and Rs 6.075 per unit in Bihar.

*In reference to this news, we sought reactions from Adani Power and APDCL regarding the electricity rates. No response was received from Adani Power by the time of writing. APDCL informed us that they would send their statement via email, but we were unable to receive it. We will publish the statements from Adani Power and APDCL as soon as they are received.