Adani Power subsidiary, Adani Power Maharashtra Ltd (APML) has been granted compensation on power tariff in respect of the power purchase agreement signed with Maharashtra Electricity Distribution (MSEDCL).
The compensation was allowed by the Maharashtra Electricity Regulatory Commission (MERC), on account of non-availability from Lohara coal block, which was withdrawn by the Coal Ministry.
It is pertinent to note that APML’s Tirora power station with an installed capacity of 3300 MW (5 X 660 MW super-critical units), had signed power purchase agreement (PPA) for supply of 1756 MW electricity to MSEDCL.
However, following the withdrawal of Lohari coal block, APML had approached the MERC to terminate the PPA. Alternatively, APML had prayed for revision in tariff on account of the non-availability of coal from the block.
During pendency of this matter, after considering the then power shortage situation in the state, MERC allowed APML to supply power to MSEDCL as per PPA rates without prejudice to its claims.
Nevertheless, in order to mitigate losses being incurred by APML due to withdrawal of Lohara coal block, MERC had setup a committee to suggest methodology of computing compensatory tariff.
Subsequent to the submission of report by the committee and after hearing all stakeholders, the MERC agreed upon granting tariff to APML.
MERC in its final order noted that the de-allocation of the Lohara coal block by the Ministry of Coal would qualify as change in Law, and entitled APML compensation for alternative coal used to meet the shortfall from the commencement of power supply under the PPA.
Besides, AMPL was also allowed to levy the carrying cost from the effective dates from which it was affected and had incurred expenditure till the date of the subject order.
Adani Power (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India. The company has an installed thermal power capacity of 12,450 MW spread across four power plants in Gujarat, Maharashtra, Karnataka and Rajasthan.
The company has recently announced the acquisition of GMR Chhattisgarh Energy (GCEL), which owns and operates a 1370 MW (2X685 MW) Supercritical power plant at Raipur, Chhattisgarh.
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