Assam set to buy power from Adani at ₹6.30 per unit — Highest in India, sparks questions over cost and transparency

With power rates in other states significantly lower and the AERC’s own observation that the rate appeared high, the Assam government now faces mounting questions:
Assam set to buy power from Adani at ₹6.30 per unit — Highest in India, sparks questions over cost and transparency Assam set to buy power from Adani at ₹6.30 per unit — Highest in India, sparks questions over cost and transparency

In a move that’s raising eyebrows across policy and power sectors, the Assam government is preparing to ink one of the most expensive power purchase agreements (PPA) in the country — with Adani Power Limited — at a rate of ₹6.30 per unit. This makes Assam’s purchase price the highest among all states buying electricity from the same company.

According to official records, the Assam Electricity Regulatory Commission (AERC) granted approval to the Assam Power Distribution Company Limited (APDCL) on October 22 to procure 3,200 MW of coal-based power from Adani Power. The approval came after an unusually fast process — just 12 days from the opening of bids to the final green signal.

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While states like Maharashtra, Uttar Pradesh, Madhya Pradesh, and Bihar are purchasing electricity from Adani Power at rates between ₹5.39 and ₹6.075 per unit, Assam’s proposed rate of ₹6.30 per unit stands out as the costliest.

State Rate (₹/unit)
Maharashtra 5.39
Uttar Pradesh 5.39
Madhya Pradesh 5.81–5.83
Bihar 6.075
Assam (proposed) 6.30
A 12-Day Rush for a 25-Year Deal

 

Documents reveal that APDCL floated a tender in August 2025 to buy 3,200 MW of coal-based power. The bidding closed on October 3, bids were opened on October 10, and Adani Power emerged as the lowest bidder at ₹6.30 per unit. Within days, on October 15, APDCL sought AERC’s approval.

During a hearing on October 17, AERC itself expressed concern that the proposed rate “appeared high” and directed APDCL to renegotiate. Adani Power responded the same day, claiming that its fixed charge for Assam (₹4.16 per unit) was actually lower than in other states. The company cited fixed charges of ₹4.17 for Bihar and ₹4.22–₹4.30 for Madhya Pradesh.

Despite these marginal differences, Assam’s total cost still comes out higher due to increased transmission charges — about 23 paise more per unit compared to Bihar. This brings Assam’s overall cost to ₹6.30 per unit — compared to Bihar’s ₹6.075.

Nevertheless, within just five days of the initial hearing, AERC approved the deal on October 22, allowing APDCL to proceed with the ₹6.30 per unit purchase agreement — valid for 25 years.

Shadow of a Bigger Scandal

The Assam deal comes under public scrutiny amid controversy over a similar agreement between Adani Power and the Bihar government. Former Union Power Minister R.K. Singh recently alleged a ₹62,000 crore scam in Bihar’s power purchase arrangement with Adani, claiming the state would end up paying ₹2,500 crore extra per year over 25 years.

Singh’s allegations have raised alarm bells in Assam, where the total procurement — 3,200 MW at ₹6.30 per unit — could translate into an even larger financial burden for the state’s consumers and exchequer.

Minister Says “Final Rate Not Yet Finalised”

When contacted, Assam Power Minister Prasanta Phukan maintained that the final agreement is still in preparation and the price is not yet confirmed.

“The final quotation is not yet finalized. Once it is done, it will be made public. The government is actually preparing for the agreement, and the amount is not yet finalised,” said Phukan while speaking exclusively to Northeast Scoop.

However, official AERC documents reviewed by Northeast Scoop confirm that the Commission has already granted approval to APDCL to purchase 3,200 MW from Adani Power at ₹6.30 per unit — raising questions about the minister’s claim and the opacity surrounding the final deal.

Public Interest Questions

With power rates in other states significantly lower and the AERC’s own observation that the rate appeared high, the Assam government now faces mounting questions:

Why is Assam agreeing to pay the highest rate in India for the same supply of electricity from the same company?

Why was the process — from tender opening to final approval — completed in record time of 12 days for a 25-year deal worth thousands of crores?

And if the minister insists the rate is not final, why has AERC already issued its approval order?

As the government moves closer to formalizing the agreement, calls for transparency and scrutiny are growing. Opposition leaders and energy experts are demanding a review of the deal to ensure Assam’s consumers do not end up bearing the burden of what could become one of the costliest power purchases in the country’s history.

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