Tata Power’s Maithon plant tariff plan approved by CERC

Mumbai: The Central Electricity Regulatory Commission (CERC) approved the tariff petition of 1050 MW Maithon power project run by Maithon Power Ltd, which is a joint venture between Tata Power Co. Ltd and Damodar Valley Corporation (DVC). The tariff order will help to meet targeted returns from the project, the company told the stock exchanges. According to the 18 November CERC order, the final tariff for unit I of 525 MW between 1 September 2011 to 23 July 2012, will be Rs.2.03 per unit and tariff for unit I and unit II, also of 525 MW, from 24 July to 31 March 2012, will be Rs.1.66 per unit. Tata Power owns 74% stake in Maithon project in Jharkhand and rest is owned by DVC. In another development, the Appellate Tribunal for Electricity (APTEL) rejected Brihanmumbai Electric Supply and Transport’s (BEST) appeal of a 14 August order by the Maharashtra Electricity Regulatory Commission giving a permit to Tata Power in the island city of Mumbai. After a prolonged battle between Tata Power and BEST in May, the Supreme Court ruled that Tata Power was authorized to distribute power in entire Mumbai, including the island city—the area between Colaba and Nariman Point in the south to Mahim and Sion in the north. Subsequently in August, Maharashtra Electricity Regulatory Commission (MREC) issued a license to Tata Power in August. The MERC’s decision to grant a license was challenged by BEST before the APTEL. Shares of Tata Power rose by 0.55% to Rs.90.65 on BSE.

Source:livemint