Gujarat government has tied up with Adani and Essar for purchasing 3000 MW power at a fixed rate for a period of 26 years.

Adani and Essar will sell power to state government at Rs 2.35 per unit to Rs 2.89 per unit.

Further under the agreement, which was signed a few months back, the companies will not be able to alter the rates under any circumstances in near future.

This perhaps for the first time that Gujarat government has tied up for power at very competitive rates with private companies for such a very long period.
Gujarat's present installed capacity is over 9,000 Mw against the unrestricted power demand of 11,500 Mw, resulting in a deficit of 2,500 Mw.

Of the 3000Mw, the state will start getting 1000Mw by the end of 2009.