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News Brief | May 2013

Revised tariff likely for coal crunch hit power projects

The Union government intends to put in place a framework for revision in power tariff for operational projects that face additional costs due to Coal India's (CIL) inability to supply fuel that was assured when the projects were set up. The Ministry of Power has written to Central Electricity Regulatory Commission (CERC), seeking its advice on how to tackle the fuel availability risk for projects which are already operational and have entered into long-term supply pacts with distribution companies (discoms). This could benefit projects totalling 37,680 MW owned by NTPC and private utilities. Over 37,000 MW of operational projects and 28,000 MW of upcoming projects have slowed down owing to supply constraints.
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