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.
