Lanco Infratech has secured a favourable order from the Appellate Tribunal for Electricity for the Amarkantak power project located in Korba district of Chhattisgarh.
According to a statement from the infrastructure company, the tribunal has passed its order that enables to determine the new tariff for the second unit of Amarkantak project, which will be higher compared to what was being offered earlier.
As per the order, Amarkantak Unit 2 shall be paid ‘regulated tariff’ based on the actual capital cost of the project. This would result in sustainable and profitable operation of the project at full capacity.
Amarkantak project, which is one of the subsidiaries of the company, had terminated its power purchase agreement with PTC for supply of power from its Unit 2 for non-compliance of agreement terms. This was under litigation.
The company, however, continued to recognise the revenue as per the Central Electricity Regulatory Commission (CERC) rate based on the application filed to fix or approve the tariff pursuant to the Supreme Court order now pending before the tribunal for adjudication.
Based on its assessment and legal advice, the company had recognised the differential revenue for the quarter ended September 30, 2013, (nil against Rs 99.25 crore) for the year ended March 31, 2013, and Rs 95.99 crore for the year ended March 31, 2012, on the basis of tariff computed on provisional basis as per CERC norms.