Environ min okays Tata Power's Trombay unit modernisation plan.

In a step that could ultimately lead to lower tariffs for Tata Power Co Ltd's consumers in Mumbai, the environment ministry has granted final go-ahead to the company for the 11.74-bln-rupee modernisation of its 500 MW unit at its Trombay thermal power station, according to a ministry official.

Post the modernisation, the power tariff in Mumbai is expected to almost halve to 4.48 rupees per unit from the current cost of 8.50 rupees per unit, as per a claim made by the company itself earlier this year. The proposal was for the modernisation of the Unit-6 of the plant by changing the raw material used for power generation from fuel oil to low-sulphur imported coal, the official said.

The Trombay plant has an installed capacity of 1,580 MW. The modernisation plan was necessitated by non-availability of natural gas. The 500 MW unit, which used to operate at 80% plant load factor, is operating at about 50% for the last two years, due to fuel shortage.

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