GMR Group today announced revision of power tariff for GMR Kamalanga Energy Limited, a Special Purpose Vehicle of GMR Energy Limited, following a favourable order passed by Central Electricity Regulatory Commission (CERC) on November 16, 2015.

GMR Kamalanga had submitted an application to CERC for determination of the tariff under the power purchase agreement (PPA).

Pending order of CERC, GMR Kamalanga was being reimbursed at Rs 2.75 per unit of total tariff. Consequent to the CERC order, GMR Kamalanga will be entitled for a price of Rs 3.97 per unit for FY 14 and Rs 3.4 per unit thereafter.

GBS Raju, Business Chairman-Energy, GMR, in a statement said: “This is another reaffirmation of the Government’s and Regulator’s resolve to solve the problems of the Power sector. We are pleased to note that CERC has passed this tariff order which will go a long way improving the profitability and liquidity of the Group.”

This long pending order would entitle GMR Group to collect all the arrears of power supply from GMR Kamalanga Energy Limited to GRIDCO for power supplied till September 2015. Going forward the order will help improve company’s EBITDA by Rs 120 crore.

Around 85 per cent of Plant’s power generation capacity is tied up through long term PPA which Includes PPA with GRIDCO, Odisha for off taking 25 per cent of the power generated from the power station.

GMR Kamalanga Energy Limited owns and operates 3x350 MW coal based thermal power plant at Kamalanga village in Dhenkanal district, Odisha. Its unit one was commissioned in April 2013, unit two in November 2013 and unit three in March 2014. The Union Power Ministry has granted it the mega power project status.

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