New Delhi: Tata Power on Thursday said electricity regulator CERC has suggested it to immediately convene a meeting with buyers of power generated from Mundra project in Gujarat, following the company's plea to hike tariffs.
The direction has come on a petition by Tata Power subsidiary Coastal Gujarat Power Ltd (CGPL) seeking higher tariff for electricity from the Mundra UMPP in the wake of imported coal becoming costlier.
In a statement, Tata Power said the petition was heard by the Central Electricity Regulatory Commission (CERC) Thursday.
"The Commission has suggested that the concerned parties i.E. Procurers and CGPL should meet immediately in order to explore a possibility of a specific solution," it said.
According to CERC, Tata Power counsel said that there is provision for conciliation with procurers.
"We have asked that if there is provision for conciliation with (electricity) procurers, then Tata Power should explore that and then come back to us," CERC chairperson Pramod Deo said.
CGPL is developing the 4,000 MW Mundra project, which is currently run on coal procured from Indonesia. Changes in Indonesian fuel pricing regulations have made the UMPP unviable at existing tariffs.
"The Commission has kept the petition pending and has asked the parties to report on the outcome for it to decide on further course of action. CGPL is committed and would pursue on this advise and hopes to find an early resolution," Tata Power said.
Through competitive bidding, Tata Power had bagged Mundra UMPP by quoting a price of Rs 2.26 per unit, a tariff which has now become unviable.
Now, the power producer is seeking a higher tariff of about Rs 3 per unit.
Electricity generated from Mundra UMPP is to be supplied to five states -- Gujarat (1,805 MW), Maharashtra (760 MW), Punjab (475 MW), Haryana (380 MW) and Rajasthan (380 MW).
The first 800 MW of Mundra project was commissioned in March this year and the second unit has already been constructed.
First Published: Thursday, July 19, 2012, 20:04