Tata Power arm seeks more time to get states’ nod for Mundra PPA revision

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New Delhi | Published: February 7, 2019 5:41:42 AM

The electricity regulator did not accept CGPL’s petition as the company had approached the quasi-judicial body unilaterally, requesting it to direct the distribution companies (discoms) to adopt revised power purchase agreements (PPAs) to facilitate pass-through of future fuel price escalation.

Tata Power arm, Coastal Gujarat Power, Mundra ultra mega power plant,  power purchase agreementsThe development comes after the Gujarat discom applied to the CERC to approve amendments in the PPA for Adani Power’s 4,620-MW imported-coal based plant, also located in Mundra.

Coastal Gujarat Power (CGPL), the Tata Power arm that runs the 4,150-MW Mundra ultra mega power plant, has sought more time from the Central Electricity Regulatory Commission (CERC) to get state distribution utilities’ consent for tariff revision for its imported coal-based unit. The electricity regulator did not accept CGPL’s petition as the company had approached the quasi-judicial body unilaterally, requesting it to direct the distribution companies (discoms) to adopt revised power purchase agreements (PPAs) to facilitate pass-through of future fuel price escalation.

CGPL in its petition mentioned that its awaits “a concrete response from procurers” regarding the proposal to amend PPAs. The Mundra plant, where Tata Power has invested Rs 14,986 crore, has PPAs with Gujarat, Maharashtra, Haryana, Rajasthan and Punjab.

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The development comes after the Gujarat discom applied to the CERC to approve amendments in the PPA for Adani Power’s 4,620-MW imported-coal based plant, also located in Mundra. Pending CERC’s approval, Adani’s new PPA with the Gujarat discom would be deemed effective from October 15, 2018. The Supreme Court on October 29 had allowed the CERC to amend the PPAs of the imported coal-based power plants as per the recommendations of a high-power panel.

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