Tata Power said it has got relief from the Central Electricity Regulatory Commission (CERC) that has asked electricity procurers to pay Rs.329.45 crore as compensatory tariff for its Mundra ultra mega power project (UMPP) to partly offset escalation in the price of imported coal. CERC has asked Gujarat, Rajasthan, Punjab, Haryana and Maharashtra electricity boards to pay this extra amount for the period April 1, 2012 to March 31, 2013.
Besides, a compensatory tariff of Rs.0.524 per kWh has been granted for the project from April 1, 2013, as per the CERC order released on Saturday.
This order is in continuation to CERC’s previous order of April 2013 and high level committee’s recommendations of August 2013, Tata Power said.
“The company finds the order balanced perhaps keeping in view the beneficiaries and consumer interests. The decision of CERC was awaited to make Mundra viable, which had got impacted due to no fault of itself, but due to change of law in at Indonesia as also other coal exporting countries and an unprecedented rise which could not have been perceived,” Tata Power said in a statement.
In a separate order, the regulator granted nearly Rs.830 crore compensation for Adani Power’s 4,620 MW Mundra plant. Gujarat has to pay Rs.420.24 crore while Haryana has to shell out Rs.409.51 crore as compensation from the commissioning date till March 31, 2013, the order said.
Further, for compensatory tariff for period starting from April 1, 2013, a formula has been decided upon by CERC.
Adani Power has inked two power purchase agreements with Gujarat — 1,000 MW each.“The Commission shall review the compensatory tariff after a period of three years unless the compensatory tariff is withdrawn earlier in terms of our order,” CERC said in both the rulings that have come on petitions filed back in 2012.