The Maharashtra cabinet on Wednesday cleared a proposal to appoint a committee to decide on a tariff revision for Adani Power Ltd’s 1,320 MW Tiroda power plant in Gondia district, as directed by the Maharashtra State Electricity Regulatory Commission (MERC).
The state government-owned power distribution utility Mahavitaran Ltd
had signed a power-purchase agreement (PPA) with Adani Power in 2008. However, in 2009, the environment ministry declined to grant clearance to a captive coal mine allotted to the company as the mine was in the middle of the buffer zone at Tadoba tiger reserve.
Subsequently, it tried to negotiate with Mahavitaran for a higher tariff as it had to purchase coal from other sources, but Mahavitaran declined to oblige.
Adani Power approached MERC seeking a tariff revision in 2011. In August, ruling in favour of Adani Power, MERC approved a temporary hike of 57 paisa per unit and asked the state government to appoint a committee to decide on the tariff hike.
“The committee will consist of secretary energy, managing director of Mahavitaran, independent financial analysts, bankers and independent experts from power sector,” a press release issued by the chief minister’s office said.