GMR to get higher tariff for Kamalanga power plant

GMR Group today said it will get higher electricity tariff for its Kamalanga power plant in Odisha after the Central Electricity Regulatory Commission (CERC) gave a favourable ruling.
CERC passed order on November 16 revising tariff to Rs 3.97 per unit for 2013-14 and Rs 3.4 thereafter. This is against Rs 2.75 per unit it was getting till now.
It said a revision of power tariff will take place for GMR Kamalanga Energy Ltd, an SPV of GMR Energy Ltd, following an order passed by Central Electricity Regulatory Commission (CERC), the company said in a statement.
GMR Kamalanga had submitted an application to CERC for determination of the tariff under the Power Purchase Agreement (PPA).

"Pending order of CERC, GMR Kamalanga was being reimbursed Rs 2.75 per unit of total tariff. Consequent to the CERC order GMR Kamlanga will be entitled for a price of FY14 which shall be approximately Rs 3.97 a unit and Rs 3.4 per unit thereafter," the company said.
Commenting on the development, GBS Raju, Business Chairman - Energy, said: "This is another reaffirmation of the Government's and Regulator's resolve to solve the problems of the power sector. We are pleased to note that CERC has passed this tariff order which will go a long way improving the profitability and liquidity of the Group."

The order would entitle GMR Group to collect all the arrears of power supply from GMR Kamalanga Energy Ltd to GRIDCO for power supplied till September 2015.

"Going forward the order will help improve company's EBITDA by Rs 120 crore," the statement said.
Around 85 per cent of the plant's power generation capacity is tied up through long term Power Purchase Agreement (PPA) which includes PPA with GRDICO, Orissa for off-taking 25 per cent of the power generated from the power station.
GMR Kamalanga Energy owns and operates 3x350 MW coal-based thermal power plant at Kamalanga village, in Dhenkanal district, Odisha.

Its first 350 MW unit was commissioned in April 2013, second in November 2013 and third in March 2014. The Union power ministry has granted it the mega power project status.