New Delhi, Feb 13: Reliance Power Ltd has accused the Central Electricity Authority (CEA) of taking a jaundiced view of facts and figures while drawing a comparison of tariff for IPP projects in Tamil Nadu vis-a-vis the 1,050-mw North Madras thermal power project of Videocon Power Ltd (VPL).In letters written to the ministry of power as also the CEA, Reliance Power, promoters of the 500-mw Jayamkondam lignite power project, one of the projects whose tariff has been commented upon by the CEA, has stated that "the premier government body in the power sector, with experience of 25 years, has failed to understand the tariff profile of the Jayamkondam project. This project was awarded based on transparent tariff norms through an international competitive bidding (ICB) process".
It is pertinent to note that the Jayamkondam project is one of the projects which have received escrow cover after cancellation of the Videocon power project's escrow by the Tamil Nadu Electricity Board (TNEB). The TNEB's decision to cancel the Videocon escrow and re-allocate it to other projects was based on the findings of a Crisil Advisory Services (CAS) report to the board on IPP tariffs in the state. According to RPL's letter, CEA's comparison of Jayamkondam with that of the ST-CMS promoted Neyeveli lignite project and the Videocon project is unjustified as all these projects are based on entirely different concepts and as such cannot be compared.
CEA officials said the authority was still in the process of collecting more information from the TNEB. Asked about its comments already made on the Crisil report, they said the authority had made only preliminary observations based on details forwarded to it by the ministry.
Significantly, it was on the directives from the nodal ministry, the CEA had made certain observations in its report (a copy of which is with The Financial Express) on the Jayakondam tariff as also that of the ST-CMS power project vis-a-vis the North Madras project of Videocon.
On the comparison drawn by the CEA on the fuel cost of Jayamkondam with that of Videocon and ST-CMS's lignite project, Reliance Power has stated that the differences in fuel costs (variable charges) of the Jayamkundam and ST-CMS/Videocon projects are mainly on account of differences in bid conditions and the way these projects have been structured.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
