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CERC move positive, CIL Coal linkage an issue: Adani Power

The Central Electricity Regulatory Commission’s (CERC) order allowing gross compensatory tariffs to Adani Power against the Power Purchase Agreements with the Gujarat and Harayana governments will partially mitigate the strain on the company’s balance sheet, said Vneet Jaain, CEO, Adani Power. CERC has allowed gross compensatory tariff of INR 0.85 / kWh against Gujarat PPA (vs Deepak Parekh committee recommendation of BSE 0.89 / kWh) and INR 0.36/kWh against Haryana PPA (vs Deepak Parekh committee recommendation of INR 0.41 / kWh).

In an interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy Jaain said the order gives provisional compensation of around INR 330 crore for past losses. But he said domestic coal linkage from Coal India continued to be an issue, and that further mitigation of losses would depend on the CERC formula. He said the company has filed petitions in Maharashtra Electricity Regulatory Commission (MERC) and CERC for Tiroda and Kawai plants.

Source-On Request