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A day after the Gujarat government revoked its earlier order allowing higher tariff to Tata Power's imported coal-based Mundra plant - Coastal Gujarat Power Limited (CGPL), the company on Friday stated that there would be no impact on the progress of company's ongoing discussions with Gujarat government for a supplemental Power Purchase Agreement (PPA).
A Tata Power statement informed that the "amendment to the PPA with Coastal Gujarat Power Limited ( CGPL) will still be considered with High Powered Committee (HPC) conditions although with few additional conditions given the recent order of GERC in the case of Essar Power."
"Hence in our view, the cancellation of GR will not impact the progress of the ongoing discussions with CGPL on the supplemental PPA," it added.
While Tata Power is examining all the aspects of the HPC terms because of the latest low imported coal prices and its long term trends, it has also expressed a likelihood of a separate Supplemental PPA being worked out with the CGPL.
"..based on legal opinion Gujarat Government has also agreed that separate Supplemental PPA can be finalised with CGPL instead of the composite common PPA, which was envisaged earlier with all the five States," the statement said.
In a sudden development on Thursday, the Gujarat government had revoked a Government Resolution (GR) dated December 1, 2018, which was based on the High Powered Committee's recommendations citing low prices of international coal.
"The main objective of GR dated December 1, 2018, was to protect the interest of consumers while ensuring the supply of power from 4805 Mw capacity at reasonable rates. Further in view of market trend of Indonesian coal price, changed scenario and to safeguard the interest of the consumers, Government of Gujarat has revoked the GR as the same was not fulfilling its objective and purpose," a State government communique had said.
The government informed that a suitable decision in the matter of Tariff for Imported Coal based projects would be taken in future considering consumers interests.
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