The Central Electricity Regulatory Commission (CERC) on Friday approved higher tariff for Adani Power's 2000 MW Mundra unit.

The power plant was facing hardships after compensatory tariff was disallowed by the apex court in April 2017. Adani Power has been seeking to pass through the higher cost of imported coal to run this plant. The cost of fuel rose after Indonesia changed its regulations. The Mundra plant in Gujarat is an imported coal-based plant.

Disposing of the petition, the power regulator said said these projects (Adani and Tata's Mundra plants) are efficient, on super-critical technology and are base-load plants and therefore, it makes economic sense to keep them operationalised.

Adani Power had entered into two power purchase agreements of 1,000 MW each with the Gujarat government at Rs 2.35 per unit and Rs 2.89 per unit for its 4,620 MW plant in Mundra.

Last year, the Gujarat State Electricity Board had approached the CERC to seek approval to amend the terms of the power purchase agreement (PPA) for 2,000 MW. In Gujarat, Adani Power has two PPAs with 1,000 MW each.

The company approached the CERC to consider increases in the power tariff after customers in Haryana and Gujarat refused to pay higher rates for electricity generated from its imported coal-based plant in Gujarat.

(With inputs from PTI)

First Published:Apr 12, 2019 3:26 PM IST