Gujarat govt allows pass-through of higher coal cost for Tata, Adani, Essar power plants


Gujarat govt allows pass-through of higher coal cost for Tata, Adani, Essar power plants

Bringing relief to thermal power plants owned by Tata, Adani and Essar groups, the Gujarat government Saturday passed an order to allow pass-through of higher cost of coal to end consumers, a source said.

The The Supreme Court had earlier ruled against any compensatory tariff for Tata Power, Adani Power (4600MW Mundra) and Essar Power (1320MW Salaya) plants to allow pass-through of higher cost of imported coal.

Confirming the development, Tata Power in a BSE filing Monday said, “The company welcomes the resolution by the government of Gujarat to accept the recommendations of the high-power committee in giving some relief to Mundra ultra mega power project that meets nearly 15 per cent of Gujarat’s requirement of power at a very reasonable cost.”

“This relief will help Coastal Gujarat Power to continue its operations to meet its obligations to all the five beneficiary states,” it added. Read More

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