March 17, 2014 3:16:35 am
The central electricity regulator’s order for compensatory tariff to Tata Power and Adani Power has not only provided relief to producers but also ensured that discoms and consumers are not burdened by higher tariff, says a report by rating agency Care.
The Central Electricity Regulatory Commission (CERC) has directed the states to pay a compensation of Rs 329.45 crore to Tata Power and Rs 829 crore to Adani Power for a period from April 1, 2012 to March 31, 2013 for their past losses arising out of higher coal imports.
The CERC has also allowed a gross compensatory tariff of Rs 0.53 per unit for Tata Power, which supplies power to Gujarat, Haryana, Maharashtra, Punjab and Rajasthan, while a provisional gross compensatory tariff of Rs 0.85 per unit for Gujarat and Rs 0.36 for Haryana for Adani Power. The report further said, “These tariffs still remain within the range of 25-50 per cent of merit order dispatch for all the discoms. Thus, discoms stand to gain even after compensatory tariff hikes as most of recent Case-1 and Case-2 bids are being clinched at higher tariffs Rs 4.5-5 per unit.”
Gujarat draws 1,805 MW from Tata Power and 1,000 MW from Adani Power, while Haryana gets 380 MW and 1,424 MW, respectively, from both the power producers.
India Inc buys global assets worth $29.3 bn
NEW DELHI: Outward foreign direct investment from the country, which was on slippery road during the past two fiscals, has seen some signs of recovery in the current fiscal with the total deal value touching $29.34 billion so far, says a report. “The period between FY07 and FY11 has been buoyant at times for outward FDI investments, but there has been a slowdown since then.
Investments declined in FY12 and FY13, but there has been a recovery in FY14 so far,” Care Ratings said in a report.
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