State discoms may challenge Aptel order on Adani, Tata Power

Jul 28 2014, 11:20 IST
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SummaryElectricity distribution companies of states like Gujarat and Maharashtra are likely to appeal against the sector tribunal's order allowing power producers to recover increased imported fuel cost from March 2013.

Electricity distribution companies of states like Gujarat and Maharashtra are likely to appeal against the sector tribunal's order allowing power producers to recover increased imported fuel cost from March 2013. State discoms of Gujarat, Haryana, Maharashtra, Punjab and Rajasthan are like to move the Supreme Court in the next few days against the the Appellate Tribunal for Electricity's (Aptel) interim order of July 21, government and industry sources said.

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.

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