Adani's Maharashtra project gets MERC nod for compensatory tariff.

In a big relief for Adani Power, the Maharashtra Electricity Regulatory Commission (MERC) has approved a compensatory tariff of Rs 1.01 a unit for its 1,320 Mw Tiroda power project in the state.

This will be above the tariff of Rs. 2.67 a unit according to the power purchase agreement between Adani Power Maharashtra Ltd. (APML) and the Maharashtra State Electricity Distribution Company (MahaVitaran). However, MERC has proposed a reduction of 20 per cent in return on equity. Thereby, the total power purchase cost from the 800 MW for MahaVitaran works out to Rs. 3.56 a unit.

A MahaVitaran official told Business Standard: 'We will have to bear an annual burden of Rs. 400 crore due to the proposed compensatory tariff of Rs. 1.01 a unit. MahaVitaran proposes to challenge the MERC order in the Appellate Tribunal for Energy (ATE).' Adani Power was not available for comment.

MERC however, said that the indicative compensatory energy charge would be reduced when APML progressively secured 100 per cent domestic linkage coal for 800 MW.


BS