Tariff issue hamper imported coal power projects in Gujarat

By Marc Castro

Oct 09, 2013 10:33 AM EDT

Tata Power would have to wait in order to continue its coal based power projects in Gujarat. Both Punjab and Haryana have filed their opposition to tariff hikes to the plants while the host state is still in the midst of setting up a committee to oversee the whole project.

In a related matter, the government of Maharashtra had followed the advisory from the national auditor before signing off any report recommending any tariff hikes for the said projects. Another wrinkle is the delay in the promulgation of the judgement on the appeal made by Adani Power for its imported coal-based project being heard by the Central Regulatory Regulatory Commission.

Earlier, a panel headed by Deepak Parekh recommended to the regulator to seek comment from the states purchasing power from two Mundra projects to file their position papers on a recommended tariff hike. The panel pushed for a compensatory tariff of 45 to 55 paise per unit for Tata Power's Mundra ultra mega power project and 60 paise per unit for the Adani Power plant in the same region.

According to a senior official in CERC, "The Punjab government said that any raise(sic) in tariff from the Mundra project would lead to additional burden on its electricity consumers, while the Haryana government has said it would not purchase power from the project if tariffs are raised."

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