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Tata Power has synchronised unit five of 800 MW at its 4,000 MW imported coal-based plant in Mundra, Gujarat.
The first four units (800 MW each) have been commissioned between March last year and February this year. With this, the 4,000-MW plant is fully operational and raises Tata Power’s total capacity to 8,500 MW.
With unit five online, the thermal power generation capacity of the company is at 7,647 MW. Generation through clean sources such as hydro, wind and solar add up to 852 MW.
Anil Sardana, Managing Director, said: “The synchronisation of the last unit is a significant achievement in a sector, which is ridden with numerous challenges.
“The Mundra UMPP features a number of advanced technological initiatives based on super critical technology. We eagerly await a viable solution by the CERC and look forward to an early resolution of this issue.”
Tata Power has petitioned the Central Electricity Regulatory Commission seeking higher tariff for electricity generated at its Mundra plant.
Exports from Indonesia
The company had contracted coal supplies from Indonesia at lower than market rates for the project. However, last year, Jakarta mandated that all coal exports from that country should be benchmarked to international prices.
Consequent to the fuel price hike on account of the policy change in Indonesia, Tata Power sought an increase of about 80 paise on the power purchase agreement tariff of about Rs 2.55, citing rise in coal prices caused by the policy change by the Indonesian Government.
The petition has been heard by the Commission and its decision is awaited.
Sardana told Business Line that the company was losing about 50 paise for every unit generated at the Mundra project.
Unit posts loss
For Q3 FY13, the power utility’s wholly owned subsidiary Coastal Gujarat Power Ltd, formed to set up and operate the Mundra project, posted revenues of Rs 798.63 crore and a loss of Rs 829.58 crore.
During the quarter, only three units totalling 2,400 MW were operational.
An additional provisioning of Rs 600 crore for recoverability of carrying cost from future earnings has been made during the quarter.
Tata Power said with the impairment, the equity of Coastal Gujarat had eroded substantially and it was awaiting CERC decision on tariff hike to ensure the project’s long-term sustainability.
shanker.s@thehindu.co.in
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