Mundra project tariff may go down on falling coal prices; Tata Power forced to seek compensation.

Tata Power's 4,000-MW Mundra project would need a smaller increase in tariff to compensate for import costs as global coal prices have fallen significantly.

The plant runs on Indonesian coal, which became more expensive because of an unexpected change in the country's law, which forced Tata Power to seek compensation from regulatory authorities.

'The relative compensatory tariff from Mundra will be lesser now since coal prices have come down. This tariff when announced, was 52 paise and after adjustment its now 42 paise and will go down further to 32 paise,' Anil Sardana, CEO and MD, Tata Power told ET.


ET