In a major relief for Tata Power and Adani Power, electricity regulator CERC has allowed them higher tariff and total compensation worth over Rs 1,100 crore for their Mundra power projects fired by imported coal.
The much awaited rulings would help mitigate the losses suffered by the two Mundra projects, located in Gujarat, due to price rise in Indonesian coal that is used to fire these plants.
Tata Power is running the 4,000 MW Mundra Ultra Mega Power Project (UMPP), while Adani Power is implementing the 4,620 MW Mundra plant.
The Central Electricity Regulatory Commission has allowed higher tariff as well as compensation of Rs 329.45 crore for Tata Power's Mundra plant, as per a 112-page order.
It has directed 5 states that procure power from the plant to pay the compensation for the period from April 1, 2012 to March 31, 2013. Besides, a compensatory tariff of Rs 0.524 per kWh has been granted for the project from the period beyond April 1, 2013.
Power from this Mundra project is supplied to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab.
Describing the order as "balanced, Tata Power said in a statement that it provides partial relief to Mundra UMPP.
In a separate order, running into 133 pages, CERC granted nearly Rs 830 crore compensation for Adani Power's 4,620 MW Mundra plant.
Gujarat has to pay Rs 420.24 crore while Haryana has to shell out Rs 409.51 crore as compensation from the commissioning
date till March 31, 2013, the order said.
Further, for compensatory tariff for period starting from April 1, 2013, a formula has been decided upon by CERC.
Adani Power has inked two power purchase agreements with Gujarat - 1,000 MW each - and PPAs with two Haryana utilities for 1,424 MW. Rest of the electricity generated from the plant is sold on merchant basis.
This order pertains to one PPA (February 2, 2007) with Gujarat Urja Vikas Nigam Ltd for 1,000 MW and two PPAs (August 7, 2008) with Haryana utilities -- Uttar Haryana Bijli Vidyut Nigam Ltd and Dakshin Haryana Bijli Vidyut Nigam Ltd.
"The Commission shall review the compensatory tariff after a period of three years unless the compensatory tariff is withdrawn earlier in terms of our order," CERC said in both the rulings that have come on petitions filed back in 2012.
The orders, finalised yesterday, were released today.
Noting that the compensation should be paid in 36 equal monthly instalments, CERC in both orders said the "parameters shall be used for calculation of compensatory tariff on monthly basis, w.E.F. April 1, 2013 till the hardship on account of Indonesian regulations persists".
