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MAR 07 2013

TataPowers Mundra plant goes fully operational

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 07th MAR 2013

TataPower has synchronised unit five of 800 MW at its 4,000 MW imported coal-basedplant in Mundra, Gujarat.

The firstfour units (800 MW each) have been commissioned between March last year andFebruary this year. With this, the 4,000-MW plant is fully operational andraises Tata Powers total capacity to 8,500 MW.

With unitfive online, the thermal power generation capacity of the company is at 7,647MW. Generation through clean sources such as hydro, wind and solar add up to852 MW.

AnilSardana, Managing Director, said: "The synchronisation of the last unit is asignificant achievement in a sector, which is ridden with numerous challenges.

"TheMundra UMPP features a number of advanced technological initiatives based onsuper critical technology. We eagerly await a viable solution by the CERC andlook forward to an early resolution of this issue.

TataPower has petitioned the Central Electricity Regulatory Commission seekinghigher tariff for electricity generated at its Mundra plant.


Thecompany had contracted coal supplies from Indonesia at lower than market ratesfor the project. However, last year, Jakarta mandated that all coal exports fromthat country should be benchmarked to international prices.

Consequentto the fuel price hike on account of the policy change in Indonesia, Tata Powersought an increase of about 80 paise on the power purchase agreement tariff ofabout Rs 2.55, citing rise in coal prices caused by the policy change by theIndonesian Government.

Thepetition has been heard by the Commission and its decision is awaited.

Sardanatold Business Line that the company was losing about 50 paise for every unitgenerated at the Mundra project.


For Q3FY13, the power utilitys wholly owned subsidiary Coastal Gujarat Power Ltd,formed to set up and operate the Mundra project, posted revenues of Rs 798.63crore and a loss of Rs 829.58 crore.

Duringthe quarter, only three units totalling 2,400 MW were operational.

Anadditional provisioning of Rs 600 crore for recoverability of carrying costfrom future earnings has been made during the quarter.

TataPower said with the impairment, the equity of Coastal Gujarat had erodedsubstantially and it was awaiting CERC decision on tariff hike to ensure theprojects long-term sustainability.


Gujarat Mundra UMPP Carbon Emission Reduction Central Electricity Regulatory Commission Indonesia Electricity Regulatory Commission Ultra Mega Power Project Power Tata Power Electricity

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