Web Exclusive | January 2013
'Adding units to Tata's Mundra UMPP to mount losses higher'
With additional units getting commissioned at Tata Power's Mundra project, losses at the 4,000 mw plant will mount since the company can only partially pass on fuel costs to consumers, global rating agency Moody's said on January 14.
Tata Power, the country's largest private power producer recently synchronised the fourth 800 MW unit at Mundra Ultra Mega Power Project (UMPP) located in Gujarat.
Coastal Gujarat Power (CGPL), a wholly-owned subsidiary of Tata Power, is implementing the Mundra project, the country's first UMPP. CGPL's losses will mount as additional units at the UMPP are commissioned because the company can only partially pass through this coal-fired plant's fuel costs to customers, given the terms of the Power Purchase Agreements (PPAs), Moody's said in a report.