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Punjab, Haryana govts oppose hike in power tariffs from Mundra UMPP

The Punjab and Haryana state governments have conveyed their opposition to any hike in power tariffs from Tata Power's 4,000 MW imported coal-fired Mundra ultra mega power project in Gujarat, as recommended by a panel headed by HDFC chairman Deepak Parekh. The two states have submitted to the Central Electricity Regulatory Commission (CERC) that the power from Mundra should be priced "strictly as per the terms agreed under the power purchase agreements".

The opposition by these states comes close on the heels of the Maharashtra government stating that it plans to approach the CAG and the CVC on whether to accept a proposal of the Parekh committee that suggests a hike in levellised tariff for the power supplied by the Coastal Gujarat Power Ltd, an arm of Tata Power.

The CERC had, in April this year, allowed the Tatas and Adani Power to pass on high costs of imported coal from their respective projects (both in Mundra) to consumers.

Following the Parekh panel's recommendations, the CERC had last month asked states procuring power from the Mundra or Adani's projects to give their views on tariff hike.

In their responses, these states have said that raising tariffs from Mundra project would burden their distribution companies.

"The Punjab government has told us that no extra burden is to be imposed on the consumers and no action either directly or indirectly or whether through compensatory packages result in an additional burden to the Punjab State Power Corp Limited," a CERC source quoted Punjab government officials as saying.

The Haryana government too has refused the plan by saying that allowing the pass through for imported cost of coal can't be allowed to burden its utilities. The Gujarat government is learnt to have formed a committee for forming its views on this matter.

Source: The Indian Express