GIFT Power Company Limited filed a petition before the Gujarat Electricity Regulatory Commission (GERC) seeking approval for a Power Purchase Agreement (PPA) with PTC India Limited for the supply of 3 MW Round the Clock (RTC) power under the Medium-Term Open Access Booking. The PPA aims to meet the increasing base demand requirement in the GIFT City area for the period from July 1, 2022, to June 30, 2023, at a tariff rate of ₹5.00 per unit. The petitioner is a wholly owned subsidiary of Gujarat International Finance Tec-City Company Limited and is the licensed electricity distributor for the GIFT City area.
The need for the PPA arose due to the growing energy demands in the GIFT City, a greenfield development that is still under construction. Previously, the base demand was 2 MW, which has now increased to 3 MW, with peak demand touching around 7.5 MW. To address this, the petitioner had floated tenders via the DEEP Portal on April 8, 2022, and published notices in national newspapers. However, no bids were received due to prevailing power crises and high prices in power exchanges.
In response, the petitioner formed a Standing Committee to evaluate the procurement process. The committee recommended bilateral arrangements with PTC India Limited. Subsequent discussions led to an agreement with Phillips Carbon Black Limited (PCBL) to supply 3 MW of RTC power at ₹5.00 per unit. The delivery point will be the GETCO periphery, and monthly energy bills will be based on actual supply as recorded by Gujarat SLDC.
The commission observed that this rate is aligned with recently discovered prices on the DEEP Portal, where bids ranged between ₹5.00 and ₹10.00 per unit, except for Torrent Power’s tender at ₹4.75 per unit, which was due to high volume and pre-crisis timing. Additionally, the electricity prices in the Day Ahead Market (DAM) segment on the IEX platform during March to May 2022 were highly volatile, ranging from ₹6.75 to ₹10.06 per unit.
The GERC found that the petitioner had complied with the guidelines under Clause 6 and Clause 17 of the ‘Guidelines for Procurement of Power by Distribution Licensees’, which allow procurement through the MoU route in exceptional cases. The Commission also directed the petitioner to incorporate provisions of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, into the final PPA.
The Commission reviewed all supporting documents, including the Standing Committee’s certificate dated April 28, 2022, and concluded that the petitioner had followed due process. Therefore, the Commission granted post-facto approval for the execution of the PPA with PTC India Limited. GIFT Power Company Limited is required to submit a copy of the signed PPA to the Commission within two weeks. The order was passed on July 9, 2025, in Gandhinagar.
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