Tata Power: CERC order provides partial relief to Mundra UMPP

Siddhartha P Saikia New Delhi | Updated on March 12, 2018

Regulator allows power producer to bill buyers for additional tariff

Tata Power said on Saturday the Central Electricity Regulatory Commission (CERC) order allowing the power producer to bill its buyers for additional tariff provides partial relief to the Mundra ultra mega power project (UMPP).

“The CERC on Saturday has announced an order on compensatory tariff for the Mundra UMPP in continuation to its previous order of April 2013 and the high-level committee’s recommendations of August 2013. The company finds the order balanced, perhaps keeping in view the beneficiaries and consumer interests,” the Tata group company said in a statement.

According to reports, losses met by the power producer would be recovered from utilities in five States — Maharashtra, Haryana, Punjab, Gujarat and Rajasthan — that buy electricity from the country’s first UMPP.

The reports also said losses incurred between April 2013 and February 2014 would be recovered within 12 months. Previous losses to the tune of Rs 329 crore were to be reimbursed in monthly instalments.

Business Line could not verify this information independently as CERC had not published the order on its Web site when this article was being written.

Tata Power also said the CERC decision was keenly awaited as it could make Mundra viable. The project was impacted due to change of law in Indonesia as also other coal exporting countries that resulted in an unprecedented rise in prices, which could not have been perceived.

“This will go towards resolving a major impasse affecting imported coal-based power projects that have been impacted due to uncontrollable extraneous factors. The order provides partial relief to Mundra UMPP, which has been contributing to the nation by way of about 2-3 per cent of the gross generation,” it added.


Published on February 22, 2014

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