 "CERC asks for states' response on Parekh committee recommendations")
Power regulator Central Electricity regulatory Commission (CERC) today asked five states, procurers of power from Tata and Adani-owned power projects at Mundra, to respond to a compensatory tariff recommendation in four weeks.
A committee headed by HDFC Bank Chairman Deepak Parekh had last month recommended a compensatory tariff hike of 45-55 paise per unit for Tata Power’s 4,000 Mw Mundra Ultra Mega Power Project (UMPP) and Adani Power’s 4,200 Mw imported coal-based projects.
The five states – Maharashtra, Gujarat, Rajasthan, Punjab and Haryana – may have to get their comments approved by the respective state cabinets. The states have so far been opposed to any tariff hike for the projects.
CERC had in April allowed the two companies higher tariffs to compensate for the losses arising out of a change in an Indonesian regulation that made coal costlier for the two projects of 4,000 Mw capacity each.
The committee had suggested adjusting the compensation in line with global prices and the benefits earned from the overseas mines owned by companies. As per the committee’s recommendation, the tariff for the projects is to be reviewed every quarter. The panel has also suggested imposing a ceiling on the compensatory tariff. It has also floated the idea of third-party sale of power beyond the normative availability.