The Central Electricity Regulatory Commission (CERC) today deferred a decision on a plea by Tata Power Company seeking higher tariff for sale of power from its showcase 4,000 Megawatt (Mw) Mundra Ultra Mega Power Project (UMPP) in Gujarat. The commission, in today’s hearing, asked the company developing the project – Coastal Gujarat Power L:td (CGPL) – and the buyers of power from the project – Gujarat and Punjab – to submit their fresh responses in a week.
“The regulator, after hearing all the arguments asked for fresh responses. The date for the next hearing would be decided only after that,” according to a source close to the development. While regulatory changes in coal exporting nations like Indonesia and Australia have made coal dearer for these plants leading to jacking up of generation cost, their buyers have refused to bear higher charges.
The commission had, in its last hearing, had heard the maintainability of the two petitions. Tata Power was asked to come again with the comments of the beneficiary states (buyers) in a fresh petition. The company, in an e-mail response said that the Commission, in its hearing, discussed the issue of admissibility of the petition and the compliance of the actions taken by all parties to petition.
“Both parties presented the compliance and their views on the matter. Formal hearings will commence soon after respondents (procurers) submit their responses to the petition. CGPL looks forward to a positive and an early resolution considering that it is built a national resource and one of the most competitive and state of art sources of power,” the company said.
The Mundra project was the country’s first UMPP to go on stream. The Rs 17,000 crore project is being implemented with 75% debt component. First 800 Mw unit of the project was commissioned in March this year. The second unit was synchronized recently.
Fuel for the plant is being sourced largely from Indonesia where Tata Power bought a 30% stake in two coal mines from PT Bumi Resources for $1.1 billion in 2007. That nation’s government has now linked coal exports to international benchmarks.
Tata Power had earlier signed Power Purchase Agreements (PPAs) for supply of power from the Mundra UMPP at Rs 2.2 per unit to Gujarat, Maharashtra, Haryana, Punjab and Rajasthan.