CERC rulings prove Rs 400-cr boon for Tata Mundra plant
27 Feb 2014 12:13 AM GMT
Tata Power on Wednesday said that the Central Electricity Regulatory Commission (CERC) rulings would help reduce Mundra project's annual losses by Rs 400 crore to Rs 1,100 crore. The country's largest private power producer also said that tariff for the 4,000 MW Mundra project, which would go up to Rs 2.90 per unit still remains very competitive.
Mundra ultra mega power project is estimated to be incurring a loss of Rs 1,500 crore annually mainly on account of rise in Indonesian coal prices. Describing the CERC order as partial relief, Tata Power Managing Director Anil Sardana said that it would help in reducing annual losses by as much as Rs 400 crore to Rs 1,100 crore.
Electricity generated from Mundra plant is supplied to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The power purchase agreement with distribution companies (discoms) from these states is for selling electricity at a price of Rs 2.26 per unit. Taking into consideration the fluctuations in exchange rate, the tariff of electricity from the plant is now around Rs 2.45 per unit.
The Central Electricity Regulatory Commission (CERC) has allowed a compensatory tariff of Rs 0.524 per unit for the project from the period beyond 1 April, 2013.
According to Sardana, the hike in electricity tariff would be in the range of 45-47 paise per unit. The final tariff would be around Rs 2.90. The estimate of ‘45-47’ paise hike in tariff is after taking into account various other factors including those related to Return on Equity (RoE), according to the company.
Even after the tariff hike, the cost of power sourced from Mundra would be ‘very very competitive’ compared to electricity sourced by beneficiaries from other sources, he noted. At present, he said the cost of electricity decided through competitive bidding in long-term power purchase agreements is above Rs 4 per unit.
‘It (the CERC ruling) is actually a great win for customers.. an asset has been salvaged,’ he added. CERC has allowed compensation of Rs 329.45 crore for the period from 1 April, 2012, to 31 March, 2013, besides compensatory tariff of Rs 0.524 per unit for period beyond 1 April, 2013.
Govt starts first ever coal mine auction with 3 captive blocks
New Delhi: The first ever auction of coal mines began on Wednesday with the government putting three mines in Jharkhand and West Bengal on block for captive use. The much-delayed auction will feature mines that have total reserves of 500 million tonnes. The move comes after the Centre drew flak for delaying the auction and the CAG earlier saying that allotment of 57 mines to private firms without auction had resulted in a notional loss of Rs 1.8 lakh crore to the exchequer.
‘The Government has initiated auction of coal blocks by inviting applications for the first time, for allocating coal blocks through competitive bidding for specified end-uses,’ an official statement said here.
The Ministry of Coal has offered three blocks for auction for captive use for steel, cement and sponge iron companies — two in Jharkhand and one in West Bengal. Last year, the government had allocated 17 coal mines to central and state public sector units, including four to NTPC. It had planned to auction 54 coal blocks with total estimated reserves of about 18 billion tonnes.
The blocks in Jharkhand include Jhirki & Jhirki (West) of East Bokaro Coalfield having geological reserves of 267.91 MT coking coal for steel (blast furnace) and Tokisud-II of South Karanpura Coalfield with 127.692 MT of reserves for cement plant. The mine in West Bengal, Andal Babuisol of Raniganj Coalfield, has about 103.841 MT of reserves for sponge iron.
The ministry told bidders that detailed documents, including RFP, copy of the geological report are available for sale at its subsidiary Central Mine Planning and Design Institute (CMPDIL) Ranchi. ‘The bidders are required to bid above the prescribed floor price,’ the statement said. Amid the controversies shrouding coal blocks allotment, the government for the last two years has been saying that the auction would take place shortly.
Mundra ultra mega power project is estimated to be incurring a loss of Rs 1,500 crore annually mainly on account of rise in Indonesian coal prices. Describing the CERC order as partial relief, Tata Power Managing Director Anil Sardana said that it would help in reducing annual losses by as much as Rs 400 crore to Rs 1,100 crore.
Electricity generated from Mundra plant is supplied to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The power purchase agreement with distribution companies (discoms) from these states is for selling electricity at a price of Rs 2.26 per unit. Taking into consideration the fluctuations in exchange rate, the tariff of electricity from the plant is now around Rs 2.45 per unit.
The Central Electricity Regulatory Commission (CERC) has allowed a compensatory tariff of Rs 0.524 per unit for the project from the period beyond 1 April, 2013.
According to Sardana, the hike in electricity tariff would be in the range of 45-47 paise per unit. The final tariff would be around Rs 2.90. The estimate of ‘45-47’ paise hike in tariff is after taking into account various other factors including those related to Return on Equity (RoE), according to the company.
Even after the tariff hike, the cost of power sourced from Mundra would be ‘very very competitive’ compared to electricity sourced by beneficiaries from other sources, he noted. At present, he said the cost of electricity decided through competitive bidding in long-term power purchase agreements is above Rs 4 per unit.
‘It (the CERC ruling) is actually a great win for customers.. an asset has been salvaged,’ he added. CERC has allowed compensation of Rs 329.45 crore for the period from 1 April, 2012, to 31 March, 2013, besides compensatory tariff of Rs 0.524 per unit for period beyond 1 April, 2013.
Govt starts first ever coal mine auction with 3 captive blocks
New Delhi: The first ever auction of coal mines began on Wednesday with the government putting three mines in Jharkhand and West Bengal on block for captive use. The much-delayed auction will feature mines that have total reserves of 500 million tonnes. The move comes after the Centre drew flak for delaying the auction and the CAG earlier saying that allotment of 57 mines to private firms without auction had resulted in a notional loss of Rs 1.8 lakh crore to the exchequer.
‘The Government has initiated auction of coal blocks by inviting applications for the first time, for allocating coal blocks through competitive bidding for specified end-uses,’ an official statement said here.
The Ministry of Coal has offered three blocks for auction for captive use for steel, cement and sponge iron companies — two in Jharkhand and one in West Bengal. Last year, the government had allocated 17 coal mines to central and state public sector units, including four to NTPC. It had planned to auction 54 coal blocks with total estimated reserves of about 18 billion tonnes.
The blocks in Jharkhand include Jhirki & Jhirki (West) of East Bokaro Coalfield having geological reserves of 267.91 MT coking coal for steel (blast furnace) and Tokisud-II of South Karanpura Coalfield with 127.692 MT of reserves for cement plant. The mine in West Bengal, Andal Babuisol of Raniganj Coalfield, has about 103.841 MT of reserves for sponge iron.
The ministry told bidders that detailed documents, including RFP, copy of the geological report are available for sale at its subsidiary Central Mine Planning and Design Institute (CMPDIL) Ranchi. ‘The bidders are required to bid above the prescribed floor price,’ the statement said. Amid the controversies shrouding coal blocks allotment, the government for the last two years has been saying that the auction would take place shortly.
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