Mundra tariff: States to meet Goyal t'rrow; firms seek help

Five states, hit by energy crisis due to shut down of some units of Mundra plants run by Tatas and Adani, will meet Union minister Piyush Goyal tomorrow even as the two producers have sought the Centre's intervention in resolving the issue of compensatory tariff.
The representatives of Maharashtra, Gujarat, Haryana, Rajasthan and Punjab will meet Goyal, Union Power and Coal Minister, tomorrow, a person close to the development said.
Meanwhile, sources said that Tata Power and Adani Power have sought central government's intervention for resolving the issue of compensatory tariff from their power plants in Mundra after the Supreme Court put a stay on allowing such relief to these firms.

Both the companies have sent a joint proposal to the Power Minister Piyush Goyal for his consideration, a source said.
The states of Maharashtra, Gujarat, Haryana, Rajasthan and Punjab are procuring power from Adani Power's 4260 MW thermal power plant and Tata Power's 4,000 MW ultra mega power project both at Mundra, Gujarat.
The five states are facing power crisis as the two companies have shut down some units of their power plants. Tata Power, which shut some units at it plant last week, had done so due to a technical glitch.

Tata's Mundra project supplies power to Maharashtra, Gujarat, Rajasthan, Haryana and Punjab and Adani Power's supplies electricity to Gujarat and Haryana.

Last Monday, the Supreme Court had stayed the Appellate Tribunal for Electricity's interim order allowing compensatory tariffs for the two Mundra projects. These projects have been impacted by change in Indonesian coal pricing policy.
Following a change in Indonesia's coal-price regime in 2011, both Tata Power and Adani Power had approached Central Electricity Regulatory Commission seeking relief, which allowed them to charge higher tariffs from the state utilities as compensation for the costlier fuel.
The state discoms challenged this order before the appellate tribunal which directed them to pay compensatory tariff for March to May in six installments.
The discoms moved the Supreme Court against the appellate tribunal's decision.