Tata Power seeks higher tariff for Mundra project

has approached the Central Electricity Regulatory Commission (CERC) seeking a higher tariff than that fixed by a government panel for its imported-coal-based plant. The company has sought a tariff of Rs 9.11 per unit against a variable Rs 6.05 per unit rate set by the committee headed by Central Electricity Authority chairperson B K Arya. The fixed charges for the 4000 Mw Mundra project is ₹0.90 per unit, sources said.

Tata Power has also sought ₹450 crore advance for coal imports from states that will be supplied electricity from the plant. It also said the central government directive impacts the future negotiations of the project with all state governments. CERC has sent notices to all parties, people in the know of the matter said. Tata Power did not offer any comment on the case.

Tata Power argued that tariff determination for a power project is exclusively the domain of CERC and the central government does not have the power under the statute, the sources said.

Tata Power did not challenge the decision of the Central government to invoke emergency legislation under Section 11 of the Electricity Act, 2003. The company, however, pleaded to invoke Section 11(2) of the act to approach the appropriate commission to offset any financial impact of the directions to the electricity-generating companies.