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JUL 21 2012

Adani Power wants tariff revision for more power purchase agreements

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 21st JUL 2012

Both Adani Power and Tata Power have approached Central Electricity Regulatory Commission (CERC) to seek higher tariff for their imported coal fired power projects that are under implementation at Mundra on West Coast.

Adani Power that was seeking tariff hike for one of its power purchase agreement (PPA) with Gujarat government has now approached the central electricity regulator with same request for another agreement. Adani Power that signed its two power purchase agreements (PPAs) with state utility Gujarat UrjaVikas Nigam Limited (GUVNL) for 1,000 mw each in 2010 and 2012 for Rs 2.89 and Rs 2.35 per unit respectively.

Private sector power producers are seeking upward tariff revision sighting rising cost of imported coal from Indonesia since last year.

Rising costs of imported coal has made sizable existing and upcoming thermal power capacity unviable and developers are seeking higher tariff from the state utilities. Country's largest player in private sector Adani Power was envisaging commissioning 20,000 MW of power generation capacity by 2020.

Now, it is learnt to have put some of its projects on back burner. On Thursday, CERC heard Adani Power's plea seeking upward tariff revision for its PPAs signed for its upcoming 4,620 mw of imported coal fired power project. CERC directed GUVNL to furnish its response in the matter involving its two PPAs with Adani Power.

A top official of the energy and petrochemicals department of the government of Gujarat stated that GUVNL will respond to Adani Power once the state utility hears from the CERC. Ahmedabad headquartered diversified Rs 30,000 croreAdani Group has already challenged GUVNL in Supreme Court to scrap its PPA signed for 1,000 mw for Rs 2.35 per unit.

Adani Power learnt to have sought tariff hike for its PPAs signed with state utilities of Haryana also. GUVNL is yet to receive CERC directive.

Tags

Haryana Gujarat Adani Power Ltd Gujarat Urja Vikas Nigam Carbon Emission Reduction Central Electricity Regulatory Commission Indonesia Electricity Regulatory Commission Power Tata Power

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