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Web Exclusive | August 2013

Tariff revision sought for UMPP

Reliance Power is seeking revision of tariff for its Tilaiya Ultra Mega Power Project (UMPP) in Jharkhand to Rs 2.25 per unit in place of Rs 1.77 per unit. It is learnt that the company has approached Central Electricity Regulatory Commission (CERC) in this regard. Seven-fold increase in the cost of rehabilitation and resettlement (R&R) is cited as the reason for demanding tariff revision. Anil Ambani-led Reliance Power has bagged three of the four ultra-mega power projects (UMPPs) in the country. One of the UMPP based on imported coal proposed at Krishnapatnam in Andhra Pradesh is facing regulatory issues over rise in coal prices and water costs. The company has sought revision in tariff after Indonesia increased coal prices. They have also sought compensation from the government owing to rupee depreciation, cost escalation, increase in taxes and input costs for its 4,000 MW Sasan UMPP.
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