Corporate Jan 30, 2013
New Delhi: Power sector regulator CERC today admitted a plea of Reliance Power's subsidiary for upward revision of tariff from its under-construction Sasan ultra-mega power project in Madhya Pradesh.
Sasan Power Ltd, the special purpose vehicle of Reliance Power set up to build this 4,000 MW project, filed a petition with CERC seeking tariff revision for the plant on account of rise in user charges.
The Commission today admitted their petition, but the date of hearing is yet to be decided.
Reliance Power bagged this project in 2007 in an international tender quoting the lowest 'levelised' tariff of Rs 1.19 per unit for 25 years.
As per the Power Purchase Agreement (PPA) between the developer of the project and procurer of electricity, the company can approach CERC for any Change in Law.
Meanwhile, the Reliance Power's another special purpose vehicle (SPV), Coastal Andhra Power Ltd, also petitioned CERC seeking revision in tariff of its 4,000 MW Krishnapatnam Ultra Mega Power Project in Andhra Pradesh.
On this case, CERC has said that the maintainability of the petition will be decided in a month's time.
It has also asked Reliance Power to provide written submission to CERC saying that it will withdraw their case in the Delhi High Court.
Coastal Andhra Power Ltd, an SPV of Reliance Power to execute the Krishnapatnam project, filed a petition in the Delhi High Court saying that the project was unviable due to changes in the Indonesian law that made coal very costly.
In a similar case of Coastal Gujarat Power Ltd, a subsidiary of Tata Power, which is executing the 4,000 MW Mundra project in Gujarat, has also been asked by CERC to file written submission regarding the case with the Commission.
Tata Power petitioned CERC, last year, seeking higher tariff for its Mundra plant as changes in Indonesian fuel pricing regulations made the project unviable at existing tariffs.
PFC (Power Finance Corporation) which is the nodal agency for the ultra mega power projects in the country, has awarded four such projects of Reliance Power have bagged three -- Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) apart from Sasan. Tata Power is executing the fourth 4,000 MW Mundra UMPP in Gujarat.
Ultra Mega Power Project is a big-size power plant of at least 4,000 MW generation capacity.
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