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Tata Power subsidiary Coastal Gujarat Power Ltd that operates the Mundra Ultra Mega Power Project, and buyers led by Gujarat Urja Vikas Nigam Ltd, will have to wait before their difference on tariff is resolved by the Central Electricity Regulatory Commission (CERC).
At the hearing on Thursday, CERC has asked both stakeholders – the producer and the buyers -- to submit more information.
Coastal Gujarat Power Ltd is seeking a mechanism to offset the production cost increase by passing it to the buyers.
The buyers, on the other hand, have opposed it.
Court proceedings
“The CERC heard the arguments from both sides and asked for more information. The next date of hearing would be announced within a week,” a source said.
Tata Power said in a statement, “The issue of admissibility of the petition and the compliance of the actions taken by all parties to petition and as per the record of proceedings of the CERC during the last hearing, were reported to CERC.”
“Formal hearings will commence soon after procurers submit their responses to the petition,” the statement said.
Successful bidder
Tata Power emerged as the successful bidder for 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 buyers
Buyers from Mundra UMPP include Gujarat Urja, Haryana Power Generation Corporation Ltd, Jaipur Vidyut Vitran Nigam Ltd, Ajmer Vidyut Vitran Nigam Ltd, Jodhpur Vidyut Vitran Nigam Ltd, Punjab Electricity Board, and Maharashtra State Electricity Distribution Company Ltd.
Second unit
On July 19, Tata Power announced commissioning of a second 800 MW unit at Mundra.
The company had commissioned the first in March.
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