Tata Power on Wednesday expressed the hope that the issue of tariff revision for the 4000 MW Mundra ultra mega power project (UMPP), based on the recommendations of the Deepak Parekh Committee, would be resolved soon by the Central Electricity Regulatory Commission (CERC).
Tata Power is facing opposition from Haryana and Punjab.
In a statement it said the issue Mundra tariff discussions are being undertaken as per the direction of the CERC. It is a judicial process and it is for the regulator to endorse the recommendations made by the Committee. The Mundra UMPP has been delivering the full potential across the five beneficiary states, which have PPA with it, with tremendous fiscal pain. ``We will continue to honour our commitment towards the nation’s energy security by providing reliable and competitive power supply through the project and hope for quicker resolution of the issues,’’ it added.
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According to the report submitted by the Deepak Parekh panel to the Central Electricity Regulatory Commission (CERC) earlier this month, compensatory electricity tariff has been recommended for imported-coal based thermal power plants in the country.
Currently the tariff as per the Power Purchase Agreement (PPA) for Tata Power’s Mundra UMPP is Rs. 2.26 per unit. If the panel’s proposed formula is accepted by CERC and other stakeholders the project will see that the coal price gets compensated and the low cost generated from Mundra would benefit consumers, the statement added.