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04-15-2013, 10:05 PM #1
CERC orders 'compensation tariff package' to Tata Power for Munda projectSetting the path for similar relief in future for other power projects, the Central Electricity Regulatory Commission (CERC) on Monday ordered a compensatory tariff package for the Tata Power-owned 4000 MW Mundra ultra mega power project (UMPP) over and above the tariff agreed in the power purchase agreements (PPAs).
Releasing its order on a petition filed by Tata Power seeking compensation in shape of hike in tariff for the sudden hike in price of coal imported from Indonesia, the CERC said a committee should be constituted within one week comprising representatives of Principal Secretary (Power), Managing Directors of the distribution companies of the procurer States, chairman of Tata Power or his nominee, an independent analyst of repute and an eminent banker dealing and conversant with the infrastructure sector.
``The committee shall go into the impact of the price escalation of the Indonesia coal on the project viability and obtain all the actual data required with due authentication from independent auditors to ascertain the cost of import of coal from Indonesia and suggest a package for compensatory tariff which could be allowed to the petitioner over and above the tariff in the PPAs,’’ the order said. However, the CERC has said the order is subject to periodic review by the parties to the PPAs....being a human...