Union power minister Piyush Goyal assured the ministers and top officials of Haryana, Punjab, Rajasthan, Maharashtra and Gujarat in New Delhi on Tuesday that Government is willing to facilitate the bilateral solution to the complex problem of tariff increase sought by Tata and Adani for the power generated from Mundra based ultra-mega power projects (UMPP).
According to sources the state Power Secretaries
have been requested to come again on Thursday for further discussion
and bring a letter from their respective state government requesting
Government of India to mediate between power producers and power
procurers for an bilateral/out of court settlement.
Last week, Tata Power and Adani Power simultaneously
announced shutdown of some of their units citing technical snags and
default in payment by some power utilities. This followed Supreme
Court staying the order of Appellate Tribunal for Electricity (APTEL)
allowing Tata power and Adani power to charge extra prices for
electricity generated from their power plants due to use of imported
coal. Supreme Court had asked the APTEL to dispose of the matter
The states of Maharashtra, Gujarat, Haryana,
Rajasthan and Punjab are procuring power from Adani Power's 4260 MW
thermal power plant and Tata Power's 4,000 MW ultra mega power
project both at Mundra,
APTEL on July 21 had passed an interim order
allowing increase of 52 paise per unit to Tata power and 41 paise per
unit to Adani Power for the electricity produced from Mundra plant.
In February Central Electricity Regulatory Commission in a split
decision had accepted the plea of Adani and Tata for higher tariff
following change in pricing regime by Indonesia for the coal export.
According to sources Government may file an
affidavit in the APTEL reinforcing the CERC powers to revise tariffs
in case of rise in input costs.
It may be mentioned that Tata and Adani have sought
central government's intervention for resolving the issue of
compensatory tariff from their power plants in Mundra after the
Supreme Court put a stay on allowing such relief to these firms. Both
the firms have sent a joint proposal to the Power Minister for his