BUSINESS

CERC nod for higher tariff for Adani’s Mundra plant

The Central Electricity Regulatory Commission (CERC) on Friday approved higher tariff for Adani Power’s 2,000 megawatt (MW) capacities at its Mundra power plant. The plant was facing hardships after compensatory tariff was disallowed by Supreme Court in April 2017. Adani Power has been seeking to pass through higher cost of imported coal to run this plant. The cost of fuel rose after Indonesia changed its regulations. The Mundra plant is an imported coal-based plant.

Last year, power distribution firm Gujarat Urja Vikas Nigam Ltd. (GUVNL) had sought CERC approval to amend terms of the power purchase agreements for 2,000 MW capacities with Adani’s 4,620-MW Mundra power plant.

In its plea to the CERC last year, GUVNL had proposed amendments to the two PPAs signed on February 6, 2007, and February 2, 2007, with Adani Power (Mundra) Ltd., for the supply of contracted capacity of 1,000 MW each from units 1 to 4 and units 5 and 6 of Mundra plant respectively.

Disposing of the petition, the power regulator said these projects were efficient, on super-critical technology and are base-load plants and therefore, it makes economic sense to keep them operationalised.