Comments
Anil Ambani Group’s Reliance Power stands to gain an estimated ₹7,500 crore from the electricity sold from its ultra mega power project Sasan Power Ltd.
This is due to a compensation cleared by the Central Electricity Regulatory Commission (CERC) on Monday after the regulator approved a ‘change in law’ petition of Sasan Power, a wholly owned subsidiary of Reliance Power.
The compensation is over a 25-year period, the term of the power purchase agreement. It will be made up through a 9 paise a unit increase in the electricity tariff resulting in a gain of ₹300 crore a year. In addition to the tariff increase, CERC has also granted it a one-time compensation of ₹271 crore till July 31, 2015.
The approval of the ‘change in law’ petition will allow Sasan Power to claim increase in electricity duty rate and energy development cess on sale of power to Madhya Pradesh and on auxiliary power consumption. “CERC’s order clearly establishes the principles of ‘change in law’ in line with the terms of the Power Purchase Agreement between Sasan Power Limited and Procurers, which will also ease pass-through of future ‘change in law’ impacts on Sasan UMPP,” Reliance Power said in a statement.
“Mechanism for future payments towards change in Electricity Duty Rate & Energy Development Cess has also been approved by the regulatory commission in its order,” the statement added.
The Sasan Ultra Mega Power Project, set up in Singrauli district of Madhya Pradesh, is operating at over 100 per cent plant load factor.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.