To start third 800 MW unit at Mundra in 15 days
Tata Power Ltd is targeting to acquire coal assets and get into long-term import deals in the US, Columbia and Africa to meet its increasing fuel demand. The private producer would require nearly 50 million tonnes of coal by 2020 to fire its thermal units from about 10 million tonnes now.
“Our import requirement is growing. Also, we are planning power projects overseas and need committed coal supplies for that,” said Tata Power Managing Director Anil Sardana.
Tata Power is focussing on geographies where it sees sustainability of contracts. “…Today, those options are the US, Columbia and Africa, from the point of logistics and from the point of view of cost,” Sardana told presspersons.
Tata Power plans to start the third 800 MW unit at the Mundra Ultra Mega Power Project (UMPP) in the next 15 days. On July 19, Tata Power announced the commissioning of a second 800 MW unit at Mundra. The company had commissioned the first in March 2012.
The Mundra UMPP is a 4,000 MW project that would comprise of five units of 800 MW each.
The power producer has approached the power sector regulator, the Central Electricity Regulatory Commission, to increase electricity rates from its Mundra Ultra Mega Power Project (UMPP), he added.
Tata Power has emerged as the successful bidder for the Mundra UMPP with a levelised tariff of Rs 2.26 a unit over 25 years. However, due to a new pricing regulation in Indonesia, from where it sources coal, fuel prices have shot up. This, according to the company, has made selling electricity at Rs 2.26 a unit unviable.
The Tata Power stock is trading at Rs 105.20 a share, 0.05 per cent higher, on the Bombay Stock Exchange at around 1305 HRS.
Keywords: Tata Power to buy coal assets in US, Colombia, Africa, Tata Power Managing Director Anil Sardana, Mundra Ultra Mega Power Project, UMPP, Central Electricity Regulatory Commission, BSE, Bombay Stock Exchange