Reliance Power has sought an increase in tariff from its Tilaiya project in Jharkhand due to factors, including withdrawal of various duty exemptions and cost escalation on account of its resettlement and rehabilitation programme.
According to the petition filed by the company with CERC, Reliance Power has cited reasons including withdrawal of exemption in respect of customs and excise duties on mining equipment and fuel transportation.
The petition was filed last month by Jharkhand Integrated Power Ltd, a subsidiary of Reliance Power which is executing the Rs 20,000 crore project.
“Withdrawal of exemption in respect of duties of custom and excise on mining equipment and fuel transportation..,” the company said in its 500-odd page petition to the Central Electricity Regulatory Commission.
The company is also seeking relief due to withdrawal of excise duty exemption on cement and steel as well as removal of subsidy on the price of diesel.
The company has cited reasons such as change in the declared price of land of the ultra mega power project and change in cost of implementation of R&R (resettlement and rehabilitation) of the displaced families.
Reliance Power did not offer any comment on the petition.
Power Finance Corporation, the nodal agency for UMPPs, has awarded four such projects. Reliance Power has bagged three — Krishnapatnam in Andhra Pradesh, Tilaiya and Sasan.
Tata Power has set up a 4,000 MW plant at Mundra in Gujarat.
Meanwhile, Reliance Power has already filed four petitions with the regulatory commission, seeking relief for its other UMPP at Sasan in Madhya Pradesh, on grounds of rise in construction cost and rupee depreciation.
A UMPP is a power plant with a generation capacity of about 4,000 MW.