Tariff revision issue: Blackout hit states urge Piyush Goyal to resolve power crisis

Adani Power has shut down six generating units at its 4,620 MW plant at Mundra in Gujarat citing payment default by Haryana, while Tata Power has closed down two units of its 4,000-MW plant there due to technical snags.<br />

hidden September 03, 2014 15:09:16 IST
Tariff revision issue: Blackout hit states urge Piyush Goyal to resolve power crisis

Power ministers of five states have urged union Power Minister Piyush Goyal to help restore power supply to their states facing major blackouts caused by the closure of some generation units of Adani Power and Tata Power plants at Mundra over a tariff revision dispute.

In a marathon meeting with Goyal Tuesday, energy ministers of Maharashtra, Gujarat, Haryana, Punjab and Rajasthan suggested that the Centre intervene to resolve the power crises in their respective states owing to shutting down of units of two power plants, a ministry source told IANS.

Adani Power has shut down six generating units at its 4,620 MW plant at Mundra in Gujarat citing payment default by Haryana, while Tata Power has closed down two units of its 4,000-MW plant there due to technical snags.

The source said that in the meeting the states suggested that the government consider filing an affidavit in the Appellate Tribunal for Electricity (APTEL) to strengthen the powers of the regulator Central Electricity Regulatory Commission (CERC) to revise tariffs due to rise in input costs.

Meanwhile, Haryana power utilities are blaming Adani Power for the power crisis saying the company resorted to the move to cut electricity supply from its power plants just two days after the Supreme Court stayed an earlier order of the Central Electricity Regulatory Commission (CERC) and Appellate Tribunal for Electricity (APTEL) granting it compensatory tariff.

Haryana's distribution companies (discoms) had gone to the Supreme Court against the CERC and APTL order.

"The CERC had awarded the compensatory tariff over and above the normal tariff (about 61 paise per unit) to Adani Power which was challenged by Haryana in APTEL to protect the interest of 55 lakh (5.5 million) electricity consumers of the state," a state government spokesman said.

He pointed out that thermal power plants were not getting enough coal supplies and existing stocks were depleting fast.

The Haryana government had, in August 2008, signed its biggest so far power purchase and power-sharing agreements totalling 3,044 MW with various private and public sector companies for power supply for the next 25 years. Out of this, the agreement with Adani Power was for 1,424 MW.

The CERC had, in February, separately allowed compensatory tariff to both Tata Power and Adani Power on the basis of a formula to make up for the increase in cost of imported coal.

In 2011, both companies had petitioned CERC for a tariff hike after Indonesia hiked the price of its coal.

IANS

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Women run fewer than 13% of India's MSMEs; inaccessibility of credit, govt schemes and now COVID are key hurdles
India

Women run fewer than 13% of India's MSMEs; inaccessibility of credit, govt schemes and now COVID are key hurdles

The biggest challenge faced by women entrepreneurs in India is gender bias in access to finance as studies show that their loan applications are more likely to be delayed or rejected as compared to men

Sensex reclaims 50,000-benchmark amid hectic buying in IT, auto, FMCG sectors; Nifty ends in green
Business

Sensex reclaims 50,000-benchmark amid hectic buying in IT, auto, FMCG sectors; Nifty ends in green

The top five gainers were Tata Motors, M&M, Wipro, Adani Ports and NTPC, while the top losers were ONGC, HDFC, Dr Reddy’s Labs, Coal India and Power Grid Corp

Amazon Fab Phones Fest sale to end today: Best deals on Galaxy M51, Redmi Note 9 Pro and more
News &amp; Analysis

Amazon Fab Phones Fest sale to end today: Best deals on Galaxy M51, Redmi Note 9 Pro and more

Amazon is offering an instant discount of 10 percent on Kotak Bank credit cards and EMI transactions.