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Tata Power: Double whammy

Company could be hit by low merchant tariffs at home and higher payout for coal from its Indonesian mines. A day after announcing results, Tata Power’s shares fell 4.3 per cent. The results are reflective of the operational risks faced by India’s power sector. The company, which had acquired coal mines in Indonesia to secure fuel for its ultra mega power project (UMPP) in Mundra, is now hit by the prospect of paying substantially higher for its imported coal, as the Indonesian government has recently decided to benchmark its coal prices to international indices. According to ...