Gautam Adani-led Adani Power’s net loss for the first quarter ended June 30 widened over 80 per cent to ₹825 crore, against ₹453 crore in the previous year period.

The company’s consolidated total income for the quarter declined by around 30 per cent to ₹3,959 crore (₹5,601 crore) due to a sharp fall in its plant load factor (PLF).

The average PLF achieved during the first quarter of FY19 was 38 per cent, compared to 63 per cent in Q1 FY18, the company said in a statement.

“The drop was on account of lower domestic coal availability at Tiroda and Kawai, as well as commercial shutdowns due to high imported coal prices,” it added. The company had earlier this year stopped scheduling power from its flagship 4630 MW imported coal-based Mundra project as its operations became unviable.

In 2017 the Supreme Court denied any compensatory tariff to Adani Power and Tata Power, which had sought relief for their coastal projects in Gujarat, citing increase coal prices after change in regulation in Indonesia.

Last month, a High Power Committee (HPC) consisting of former Supreme Court judge RK Agrawal, former RBI Deputy Governor SS Mundra and former Chairman of Central Electricity Regulatory Commission Pramod Deo was set up to resolve the stranded coastal projects.

“We are enthused by rapid progress in regulatory outcomes that will help us get compensated for an increase in the cost of generation,” said Gautam Adani, Chairman, Adani Group.

Mundra project

He added that with the constitution of the HPC by the Gujarat government, the company is “hopeful of finding a lasting and sustainable solution” to the cost under-recovery issue of the Mundra project.

Published on August 6, 2018