New
Delhi: In an unprecedented move, India's apex power sector regulator
offered a bailout package to Adani Power Ltd in a late Tuesday order
to offset losses on account of the unexpected increase in the prices
of imported coal and the unavailability of domestic coal for the
company's 4,620 megawatts thermal power project at Mundra in Gujarat.
Adani
Power had entered into two power purchase agreements of 1,000MW each
with the Gujarat government at Rs.2.35 per unit, and Rs.2.89 per unit
for its 4,620MW plant in Mundra.
The
judgement will also have a favourable bearing on other imported
coal-based projects planned in the country such as those of Tata
Power Co. Ltd and Reliance Power Ltd. Companies such as Adani Power,
Tata Power and Reliance Power had acquired coal mines in Indonesia to
feed their plants in India.
"The
decision in the present case will be the precedent to be followed in
future. The exercise of regulatory power in such cases will have a
cascading effect. In case there is again some development of similar
nature, will the commission interfere again at the instance of the
project developer? Will such an exercise of power not jeopardize the
consumers' interest?" Jayaraman wrote in his separate order.
A
top power ministry official, requesting anonymity, said, "The
utilities have the right to file a petition with the electricity
commissions wherein every case is dealt on its merits." Tata
Power has also approached CERC to consider an increase in its power
tariffs after customers declined to pay higher rates for the
electricity generated from its imported coal-based Mundra plant in
Gujarat.
"There
is no change in law as per the CERC order and Adani Power will have
to continue to supply as per the power purchase agreement. The order
has suggested a practical solution for a practical problem. The
regulator wants the power developers and procurers to amicably reach
a solution," said a GUVNL official requesting anonymity.
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