Panel Suggests Rs 6-7 Tariff for 6 Power Plants
A government committee has suggested Rs 6.05-7.03 per unit variable tariff for six plants using imported coal that are owned by companies such as Tata Power, Essar Power and JSW Energy, said people with knowledge of the matter, marking a step toward restarting them to ease the electricity shortage. The power companies said the tariffs are good enough for them to start generation, but state electricity distribution companies that have purchase agreements with these plants said they were examining the rates. These are benchmark tariffs that are proposed to be revised weekly or fortnightly in line with international coal prices for units that have a cumulative 8.2 GW capacity Some of this capacity is expected to be operational in the next 20 days. The parties involved can either agree to this benchmark or reach mutual agreement on different tariffs. In case state distribution companies do not buy this power, these plants will still have to operate but sell electricity on the power exchanges. The committee has calculated tariffs for six of the 13 imported coal-based plants mandated to run under the Section 11 order invoked by the power ministry on May 5 to ease power and domestic coal availability, amid projections of 220 GW electricity demand this summer.