MERC allows Adani Power Rs1.01 per unit tariff compensation

The Maharashtra Electricity Regulatory Authority (MERC) has allowed power producer Adani Power to charge state power distributor Mahavitaran an additional Rs1.01 per unit as compensatory tariff for 800 MW of electricity fed to the state grid.

The MERC order allowing Adani Power to charge a compensatory tariff of Rs1.01 per unit for up to 800 MW of power will push up the cost of purchasing power for Mahavitaran to Rs3.65 per unit.

Adani Power Maharashtra had entered into an agreement with the state-run Mahavitaran to supply 800 MW of power from Unit 2 and 3 of its 1320-MW Tiroda power plant at a levellised tariff of 2.64 per unit.

The Tiroda plant is linked to the Lohara coal block and had covered nearly 75 per cent of the fuel needed for supply of power under the power purchase agreement (PPA).

The ministry of environment and forests, however, cancelled the terms of reference (ToR) for the Lohara blocks, in 2009, which resulted in non-availability of fuel for the plant.

Adani had to resort to coal imports that raised the cost of power generation for the company.

"In the absence of such pre-identified fuel source, it is not possible to enter into a contract for supply of electricity," Adani Power Maharashtra had said. The company had sought a revoking of the environment ministry's order or making available another coal block.

Adani Power Maharashtra has requested Mahavitaran to revise tariff in such a way that the impact of change in circumstances is mitigated and it could supply power to the state utility at revised tariff.

Adani Power, meanwhile, has overtaken Tata Power as the country's biggest private power producer, supplying 15 per cent of the 17000 MW of power that PPPs added to the country's total power capacity during 2013-14.

With the commissioning of the fourth unit at its Tiroda power plant, Adani's total generation capacity has gone up to 8620 MW.

Against this Tata Power's current capacity is 8560 MW.

Tata power, however, has 1000 MW capacity in advance stage of commissioning and is adding another 849.2 MW of power capacity from alternate sources such as solar, wind, hydro and gas in India and abroad.