Coastal UMPPs should supply power at bid tariff: Scindia

Power minister Jyotiraditya Scindia said Ultra Mega Power Projects (UMPPs) being built on coastal locations must supply power at the rate bid by developers during competitive bidding for bagging the mega projects. Mumbai-based Tata Power Ltd, for example, is currently seeking a tariff hike for its 4,000 Megawatt (Mw) Mundra UMPP in Gujarat from the Central Electricity Regulatory Commission (CERC).

“As far as UMPPs are concerned, coastal or otherwise, according to their competitive base tariff process — the tariff they have bid — that is what it should remain as,” Scindia told reporters. He was speaking at the sidelines of the Annual General Meeting of industry chamber Ficci.

 

Earlier, speaking at the event along with Urban development minister Kamal Nath and civil aviation minister Ajit Singh, Scindia had voiced the government’s commitment to honor “sanctity of contracts” for infrastructure projects so that private investor’s confidence remains intact. Regulatory changes in coal exporting nations like Indonesia and Australia have made coal dearer for UMPPs. As generation cost has jacked up, their buyers have refused to bear higher charges forcing developers to seek tariff hike.