Dec 05, 2012, 12.36 PM IST
Power sector regulator Central Electricity Regulatory Commission (CERC) will continue hearings next week on the plea by Tata Power for revision of tariff for electricity generated from its ultra mega power project in Gujarat.
However, the company cannot pass on rising cost of coal to end-consumers because the company has bid for the project at a price which cannot be increased for 25 years. The plant sources its coal from Indonesia, which revised the price of coal from its mines in September, last year, which resulted in hike in the cost of the raw material. In July, this year, Tata Power filed a petition with CERC asking for a tariff hike for its Mundra project.
The company is seeking higher tariff for electricity generated from the plant, which would help mitigate losses arising out of costlier imported coal. Tata Power has commissioned the third 800 MW unit at Mundra project, taking its overall generation capacity to 6,899 MW. Two units - 800 MW each - of this plant were commissioned earlier this year.
Meanwhile, the company is also looking for additional mines in Australia, Mozambique, South Africa and Indonesia for Mundra UMPP. The project needs about 10 to 12 million tonnes of imported coal per annum.
Tata Power stock price
On December 05, 2013, Tata Power Company closed at Rs 83.45, up Rs 1.45, or 1.77 percent. The 52-week high of the share was Rs 113.20 and the 52-week low was Rs 68.25.
The company's trailing 12-month (TTM) EPS was at Rs 4.36 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 19.14. The latest book value of the company is Rs 51.67 per share. At current value, the price-to-book value of the company is 1.62.
Tags: Central Electricity Regulatory Commission, CERC, Power sector regulator, Tata Power, Pramod Deo
Action in Tata Power Company
Video of the day
Dec 5 2013, 12:20
- in FII View
Dec 4 2013, 11:08
- in FII View
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.