Lifeline For Tata, Adani, Essar Units; Supreme Court Allows Renegotiation Of Agreements


Lifeline For Tata, Adani, Essar Units; Supreme Court Allows Renegotiation Of Agreements

The Supreme Court on Monday extended a lifeline to the three troubled imported-coal-based power plants of Tata, Adani and Essar in Gujarat by allowing the Central Electricity Regulatory Commission (CERC) to amend their power purchase agreements (PPAs) to facilitate pass-through of future fuel price escalation subject to a cap.

The court said its April 2017 order denying compensatory tariffs to these plants won’t come in the way of implementing the fuel cost pass-through and other measures recommended by a high-level committee to salvage the units.

The three units with a combined capacity of 9,940 mega watts reported accumulated losses of Rs 21,250 crore as on March 31, 2018; the plants are now operating at very low capacity utilisation (PLF) levels. Read more

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