Prior to Aptel, the CERC had allowed Tata Power and Adani Power to charge compensatory tariff from procurers with whom they have signed PPAs. The Aptel had on July 21 allowed Tata Power and Adani Power to recover power dues from March 2013 on account of rise in imported fuel cost. However, the Tribunal said the companies will not recover any pre-March 2013 arrears. The ruling would provide a cushion to the companies against escalation in cost of imported coal for the plant.
According to an estimate, pre-March, 2013 dues for Tata Power's 4,000 MW Mundra Plant in Gujarat stand at R330 crore while the same for Adani's 1,980-MW Mundra project in Gujarat is R830 crore. After March 2013, Tata's Mundra UMPP will be awarded compensatory tariff at 52 paise per unit, which will fetch the company R25,000 crore over the remaining life of the plant. In the case of Adani's Mundra project, the power company will get compensatory tariff at 41 paise unit, a move that will give it R18,500 crore over the remaining life of the project.
These firms had sought relief on account of adverse impact of the unforeseen, uncontrollable and unprecedented escalation in the imported coal price.