Government allows six gencos to raise charges

A government panel set up to fix variable tariff has allowed Tata Power Company Limited, Essar PowerLimited, JSW Energy Limitedand three other power projects running using imported coal to raise charges.

This is less than the increase sought by some of the power producers. Through tariff increase, the government aims to mediate between the buyers and sellers to start generation quickly. The companies have an option to adopt this tariff, decide mutually or allow plants to sell on the power exchanges. The six plants have a cumulative capacity of 9.1 GW. For Tata Power’s 4 GW Mundra ultra-mega power project,the committee has suggested Rs 6.22 per unit compared with Rs 6.05 per unit earlier.Essar’s 1.2 GW Salaya plant in Gujarat will get Rs 7.08 per unit against Rs 6.88 per unit earlier. JSW Energy’s 300 MW Ratnagiri plant has been recommended Rs 6.71 per unit against Rs 6.52 per unit. Meenakshi Energy Private Limited’s 300 MW plant at Thamminapatnam, Andhra Pradesh will get the highest Rs 7.24 per unit energy charge against Rs 7.03 per unit. Coastal Energen Private Limited and IL&FS Tamil Nadu Power Company Limited of 1.2 GW each, both located in the southern state, have been recommended a variable tariff of Rs 6.80 per unit against Rs 6.60 earlier.

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