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Imported coal-based thermal power projects may have to look for other options to keep their business viable as the Power Ministry is not convinced with their demand for a tariff hike.
At a meeting called by Power Ministry here on Thursday to find a solution to the stress faced by imported coal-run plants of Adani Power and Tata Power, the recommendation of allowing a tariff hike did not even figure in the discussions.
“There were various aspects to keep in mind. We are looking at the possible solutions and at the same time there are a good amount of power plants that are stranded. It is also true that the Government of Gujarat is buying power from other sources that are not that cheap. There is a Supreme Court judgment and a bank loan that needs to honoured,” a senior official, who was present at the meeting said.
Besides Adani and Tata, Essar Power has also been asking for a tariff hike.
The meeting called by the Ministry of Power was attended by Chairman, State Bank of India, Rajnish Kumar, and representatives from the Gujarat government. The Centre and State have been holding meetings with lenders to discuss the future of imported coal-based thermal power projects of Tata Power and Adani Power located in Mundra. Essar Power is seeking better compensation for its project in Salaya, Gujarat.
The private players had requested Gujarat Urja Vikas Nigam Ltd (GUVNL), the parent body of State discoms, to consider various options that could help solve issues of non-viability of their thermal power projects. Operations of imported coal-based power plants in Gujarat had became unviable after Indonesia increased prices due to changes in regulations in that country.
The Supreme Court, in April, had denied compensatory tariff to Tata Power and Adani Power (Essar Power filed the same petition before Gujarat Electricity Regulatory Commission seeking similar reliefs under change in law /force majeure), thereby denying earlier reliefs granted by the Appellate Tribunal for Electricity (APTEL).
Since then, the private players have been seeking ways to deal with these assets so that they do not turn into non-performing ones.
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