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CERC approves higher tariff for Adani Power's 2 GW capacities at Mundra plant

Press Trust of India  |  New Delhi 

The (CERC) on Friday approved higher tariff for Power's 2,000 megawatt (MW) capacities at its power plant.

The power plant was facing hardships after compensatory tariff was disallowed by the apex court in April 2017. Power has been seeking to pass through higher cost of imported coal to run this plant. The cost of fuel rose after changed its regulations. The plant in is an imported coal-based plant.

"The Commission in exercise its powers under Section 79 (1) (b) of the Act read with Article 18.1 of the PPAs (power purchase agreements) approves the Supplemental PPAs to Bid-01 PPA and Bid-02 PPA," the said in an order.

Last year, power distribution firm Urja Vikas Nigam Ltd (GUVNL) had sought the approval to amend terms of the PPA for 2,000 MW capacities with Adani's 4,

In its plea to the last year, GUVNL had proposed amendments to the two PPAs signed on February 6, 2007, and February 2, 2007, with Power (Mundra) Ltd, for supply of contracted capacity of 1,000 MW each from units 1 to and units 5 and 6 of power plant, respectively.

Disposing of the petition, the power regulator said said these projects (Adani and Tata's Mundra plants) are efficient, on super-critical technology and are base-load plants and therefore, it makes economic sense to keep them operationalised.

"In sum, the supplemental PPAs entered into by the Petitioner and Respondent No.1 (GUVNL) in the light of the HPC (high-powered committee) recommendations and the Government of order are in public interest designed to meet the of the consumers of Gujarat at a competitive price," it added.

The took a policy decision in December last year to give a package to rehabilitate the imported coal-based stressed power projects located in the state.

Based on decision, GUVNL and the generator had finalised the supplemental PPAs, which have been submitted for approval of the commission.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 12 2019. 17:55 IST