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Tata Power seeks higher tariff for Mundra UMPP

Mundra is country's first Ultra Mega Power Project located in Gujarat

Press Trust of India  |  New Delhi 

Faced with losses at its 4,000 MW Mundra project due to expensive imported coal, has moved the central regulator seeking higher tariff for power generated from the plant.

Mundra, the country's first Ultra Mega Power Project which is located in Gujarat, is fired by coal imported from Indonesia. However, changes in Indonesian fuel pricing regulations have made the UMPP unviable at existing tariffs.

has petitioned the Central Regulatory Commission (CERC) seeking higher tariff for the project. The first hearing of the petition is scheduled for Thursday, a source close to the development said.

said, "The company will not comment as the matter is subjudice".


The company won the Mundra UMPP through competitive bidding by quoting a price of Rs 2.26 per unit, a tariff which has now become unviable.

Now, the company has sought higher tariff of about Rs 3 per unit.

This is the first time Tata Power has moved the CERC, the source said adding earlier it had raised the concerns with the Power Ministry and the concerned state governments.

generated from Mundra UMPP is to be supplied to five states -- Gujarat (1,805 MW), Maharashtra (760 MW), Punjab (475 MW), Haryana (380 MW) and Rajasthan (380 MW).

According to the source, the company is incurring a loss of about 0.75 paise for every unit of power generated from the plant.

If the current tariff continues, Mundra UMPP could see an annual loss of around Rs 1,800 crore, the source said.

Overall cost of the Mundra project is estimated at about Rs 17,000 crore, with 75% funding through debt.

As on fourth quarter of FY 12, debt drawn stood at Rs 11,648 crore while equity investment was at Rs 3,972 crore.

Mundra project has five units, each having 800 MW capacity. The first unit became operational in March.

First Published: Tue, July 17 2012. 16:01 IST
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