Narendra Modi gets to meet with Cyrus Mistry by Ratan Tata, Tata Group’s outgoing chairman Ratan Tata introduced his successor Cyrus Mistry to Gujarat chief minister Narendra Modi in Gandhinagar on Thursday.

And it is studied to have discussed to renegotiate Power Purchase Agreement (PPA) with the state government for its Mundra UMPP (Ultra Mega Power Project).

Ultra Mega Power Project details:

• First phase of UMPP, of 800 MW, is already complete
• Tata’s want a higher price for the power, before going into production, than what they had arranged upon about 5 years ago, according to government sources because of
• rise in prices of coal they will import from Indonesia for producing power.
• 14,000 MW of capacity addition based on Indonesian coal
• Tata’s Mundra UMPP, has hit a roadblock after Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.
• Mundra UMPP is expected to produce 4000 MW of power by 2012 end
• Gujarat is to get 40% of total power produced, while the rest of it will go to Rajasthan, Haryana and Punjab.
• Gujarat government said energy sector was discussed with Modi, but gave no further details.

Tata represented to the Government of India for making changes in the PPAs they had signed up with states and government passed the money. All 4 states must reach a agreement on the issue, a senior official in Gujarat government said, adding, We had agreed upon giving Rs 2.87 per unit of power, but they want at least 70 paise more.

Tata Group has made large investments in Gujarat in projects of its different group firms those were Tata Chemicals, Tata Motors, Tata Power. It may be recollected in 2008, Modi had managed to get Ratan Tata to invest in Gujarat by just sending an SMS, Welcome to Gujarat.

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