Haryana to pay more for power purchase from Adani & Tata
V K Gupta
February 23rd, 2014
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Haryana to pay more for power purchase from Adani & Tata
Sunday February 23 2014
Chandigarh

The purchase of 1424 MW by Haryana from Adani’s Mundra thermal plant in Gujarat has become costly after Central Electricity Regulatory Commission (CERC) allowed compensatory tariff for increase in cost of imported coal from Indonesia.
CERC in its decision of February 21 on petition no.155 of 2012 has granted compensation to Adani Power for higher costs of Indonesian Coal. Haryana has to pay Rs. 409.51 crore as compensation for the period up to March 31 2013 in thirty six installments . The compensatory tariff for the current financial year is likely to be 62 paise per unit .
There may be reduction on this if Adani sells power on merchant basis if the power generation exceeds 80% and profits are shared with Haryana. Assuming a share of 19 paise in income from merchant sales, Haryana would have to pay minimum 43 paise more for one unit of power. The compensatory tariff mechanism for both the power plants will be reviewed after three years.
Adani Power has signed two power purchase agreements in August 2008 with Haryana utilities — Uttar Haryana Bijli Vidyut Nigam Ltd and Dakshin Haryana Bijli Vidyut Nigam Ltd for the supply of 1,424 MW of power for 25 years. The power from unit 1 started on August 7 2012 and from unit 2 &3 from February 7 2013.
Haryana Government has proposed no tariff hike for the power consumers of the state in election year as it has agreed to financial restructuring plan of Government of India. It will interesting to see how this is passed on to consumers under the grab of fuel adjustment charges after the elections.

Last April, while allowing a hike in tariffs for the two projects, CERC had set up a panel headed by Deepak Parekh to work out compensatory tariffs to mitigate the adverse impact of higher prices of imported coal.
Besides reduction in interest rates, CERC has r also recommended extending a moratorium on principal repayment for two-three years and an extension in the loan repayment period and to approach appropriate authorities in this regard.

The CERC’s recommendations were based on the suggestions of the Deepak Parekh committee set up last year to arrive at compensatory rates for the two imported coal-based power plants of Adani and Tata Power at Mundra, Gujarat.
In a similar order by CERC issued on Friday the purchase of 3800 MW by Punjab Haryana Rajasthan, Maharashtra and Gujarat from Tata’s Mundra UMPP in Gujarat has become costly after Central Electricity Regulatory Commission (CERC) allowed compensatory tariff for increase in cost of imported coal from Indonesia. All the five procurer states has to pay Rs. 329.45 crore in the ration of their share as compensation for the period up to March 31 2013 in thirty six installments . The compensatory tariff for the current financial year is likely to be 52.40 paise per unit .
Punjab has 12.5 % share in Project ,Haryana & Rajasthan have 10 % share each, Maharashtra 20% and balance 47.5% is for Gujarat

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