Cogentrix Seeks Higher Tariff For Mangalore Power Project

Cogentrix Energy Inc, the US-based power major, approached the Central Electricity Authority (CEA) for a revised power purchase agreement (PPA) in view of the cost escalation in the 1,000 mw power project in Mangalore.

'Cogentrix has proposed a hike in its tariff structure on the grounds of cost escalation and has applied for a revised power PPA,' CEA chairman M I Beg has said.

This would mean that Cogentrix will have to go in for a revised techno-economic clearance (TEC) which would be possible only if the Tariff Act, 1992, is amended.

'CEA cannot give a revised TEC unless the Tariff Act of 1992 is amended and when the amendment comes, CEA will consider the revised clearance,' Beg said.

 

Cogentrix had also approached the Karnataka government to revise its tariff hike in view of the cost escalation.

Beg said CEA received tariff hike recommendation from the Karnataka government and added that tariff fixed by the state government was acceptable to the authority at present.