Shares of Tata Power and Adani Power are trading higher by up to 7% after the Central Electricity Regulatory Commission (CERC) has decided the methodology for determination of compensatory tariff for Mundra power projects.
Electricity regulator CERC has allowed higher tariff as well as compensation of Rs 329.45 crore for Tata Power's 4,000 MW Mundra project to compensate for increase in the price of imported coal, while it has granted nearly Rs 830 crore compensation for Adani Power’s 4,620 MW Mundra plant in Gujarat, the PTI report suggest.
The amount is to make up for the losses incurred by the project due to higher cost of imported Indonesian coal.
This order will facilitate in sustaining operations at Mundra and enable us to continue honouring PPA commitments. The order shall mitigate hardships to some extent on account of impact of enactment of Indonesian regulation and shortage of domestic coal supplies from Coal India, Adani Power said in a statement.
Tata Power has rallied 7% to Rs 84.50, while Adani Power has surged 5% to Rs 38.35 on the Bombay Stock Exchange.
Electricity regulator CERC has allowed higher tariff as well as compensation of Rs 329.45 crore for Tata Power's 4,000 MW Mundra project to compensate for increase in the price of imported coal, while it has granted nearly Rs 830 crore compensation for Adani Power’s 4,620 MW Mundra plant in Gujarat, the PTI report suggest.
The amount is to make up for the losses incurred by the project due to higher cost of imported Indonesian coal.
This order will facilitate in sustaining operations at Mundra and enable us to continue honouring PPA commitments. The order shall mitigate hardships to some extent on account of impact of enactment of Indonesian regulation and shortage of domestic coal supplies from Coal India, Adani Power said in a statement.
Tata Power has rallied 7% to Rs 84.50, while Adani Power has surged 5% to Rs 38.35 on the Bombay Stock Exchange.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%