Monnet to surrender Utkal C over power tariff cap
Monnet Ispat & Energy Ltd (MIEL), which won a coal block inOdisha for about Rs 9,537 crore in the recent mines auction, is set to surrender it saying that the proposed changes in electricity tariff rules will render the project unviable.
“We have submitted in the Court that we are ready to relinquish the block as the company was not told of the government’s plan to cap the fixed component of power tariffs at the time of bids,” Group’s Marketing & Corporate Affairs President Amitabh S Mudgal told PTI.
MIEL won Utkal C mine for power sector in March at an estimated Rs 9,537.22 crore, at bid price of Rs 770 per tonne.
It has contested in the Delhi High Court the government’s plans to cap the fixed component of power tariffs.