GMR group announced the revision of power tariff for GMR Kamalanga Energy, an SPV of GMR Energy, following an order passed by the Central Electricity Regulatory Commission (CERC) on November 16. GMR Kamalanga had submitted an application to CERC for determination of the tariff under the power purchase agreement (PPA).
Pending order of the CERC, GMR Kamalanga was being reimbursed at Rs 2.75 per unit of total tariff. Consequent to the CERC order, GMR Kamalanga will be entitled for a price of FY14, which shall be approximately Rs 3.97 per unit and Rs 3.4 per unit thereafter.
“This is another reaffirmation of the government and regulator’s resolve to solve the problems of the power sector.
The CERC has passed this tariff order which will go a long way improving the profitability and liquidity of the group,” GBS Raju, business chairman- energy, said in a release.
This long pending order would entitle GMR group to collect all the arrears of power supply from GMR Kamalanga Energy to GRIDCO for power supplied till September 2015. Going forward the order will help improve company’s EBITDA by Rs 120 crore. Around 85% of plant’s power generation capacity is tied up through long-term PPA which includes PPA with GRIDCO, Odisha for off taking 25% of the power generated from the power station.
GMR Kamalanga Energy owns and operates 3×350 MW coal-based thermal power plant at Kamalanga village in Dhenkanal district, Odisha. Its unit 1 was commissioned in April 2013, unit 2 in November 2013 and unit 3 in March 2014. The union power ministry has granted it the mega power project status.
The group has 15 power generation projects of which 10 are operational and five are under development.