Coal news and updates

Loss due to costlier imported coal not sustainable: Tata Power

Tata Power, the country's largest private electricity generator, today said it cannot continue to incur an annual loss of about Rs 1,900 crore on its Mundra project in Gujarat due to non-revision of tariffs.

The loss is on account of an escalation in the cost of imported coal.  
"How long can we sustain this loss of Rs 1,800-1,900 crore which we are incurring every year due to increase in the price of imported coal?" Tata Power Managing Director Anil Sardana asked at a press conference here.  

Coastal Gujarat Power Ltd (CGPL), the special purpose vehicle that operates the Mundra plant in Gujarat, had filed a petition with the Central Electricity Regulatory Commission seeking relief on account of account of uncontrollable and unprecedented escalation in the price of imported coal.  

In April, CERC said the company should be compensated for the increase in coal cost. It ordered states that buy electricity from the plant to form a panel to decide on compensating the firm for higher cost of coal imports from Indonesia.  

The panel headed by HDFC Chairman Deepak Parekh suggested a compensatory tariff of 45-55 paise per unit for the Mundra plant. However, the beneficiary states, including Gujarat and Haryana, are yet to agree on the committee's proposal.

Tata Power reported a loss of Rs 114.7 crore in the three months ended June 30 mainly due to higher prices of coal imported for the Mundra plant.  
Shares of Tata Power dropped 2.7 per cent to Rs 79.25 at the close on the BSE.  ..

Source: PTI