Tuesday, Aug 09,
The Adani Group Chairman, Mr Gautam Adani, said that the price benchmarks set by Indonesia for export of coal may create hurdles for the power sector, including group outfit Adani Power Ltd (APL), in the “immediate future”.
Adani Group, incidentally, is India’s largest coal importer and is setting up nearly 10,000-MW capacity in Gujarat, Maharashtra and Rajasthan.
The group also has mining assets in Indonesia and Australia.
According to Mr Adani, while the slow growth in Indian coal production made it imperative for the power sector to depend on imports — mostly from Indonesia — the power sector is currently hit by the dual impact of a “sudden” rise cost of imported fuel and lower demand for electricity than projected.
Mr Adani said that the “sudden change in law” by the Indonesian Government was not envisaged during the signing of power purchase agreements (PPAs). “This is an issue regulator and distributors in India should consider,” he added.
Source: The Business Line
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