Tata Power may not get immediate relief for its loss-making 4,000 MW Mundra plant, going by the way the Maharashtra Government is pondering over the tariff hike recommended by the Deepak Parekh committee.

Penning his observations on the tariff hike proposal sent to Maharashtra Government, which purchases 760 MW from Mundra, Maharashtra Chief Secretary Jayantkumar Banthia, said, “An interim letter may be sent. As discussed during the presentation made last week by Principal Secretary (Energy), it will be appropriate to take the opinion of CAG/ CVC in the matter somehow. The issue at stake include preservation of national asset without compromising on the contractual obligations of the operators. Also, can the situation be considered as a force majeure to be awarded? Compensatory tariff needs to be resolved in a transparent manner to avoid aspersions on the State Govt.” The observations dated August 28 were made on the letter addressed to him by Ajoy Mehta, Principal Secretary (Energy).

Mehta has communicated to the Parekh panel confirming receipt of the draft recommendations and that it was under consideration.

However, Mehta’s communication to the Chief Secretary also has the assessment of Maharashtra State Electricity Distribution Company (MSEDCL), which had recommended three solutions to the issue.

MSEDCL said in the first instance, the State should not approve the hike and appeal to the appellate authority. Second, the State could approve the committee recommendation of 59 paise per unit hike. However, it cautioned that this would place an additional burden on MSEDCL of Rs 300 crore. As the third alternative, it said the State could partly accept the recommendations.

shanker.s@thehindu.co.in