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CERC okays fuel cost pass through for Adani Power's Mundra plant

Monday, 15 Apr 2019
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The Central Electricity Regulatory Commission (CERC) has allowed Adani Power’s Mundra power plant in Gujarat to pass through imported coal cost to power consumers.

The high powered committee set up by Gujarat government in 2018 recommended fuel cost pass through and an option to the companies to extend the power purchase contracts by 10 years.

The Supreme Court had in October 2018 asked CERC to give its findings on compensation for high fuel cost to the three imported coal-based plants of Tata Power, Adani Power and Essar Power.

Even with full pass through of the fuel prices, these projects will continue to be competitive and cheaper than alternate sources, including any replacement capacity which in any case will take several years to come on stream, if at all.

Further, these projects are efficient, on super critical technology and are base load plants and therefore, it makes economic sense to keep them operationalised.

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