Apr 29, 2013, 10.12 AM | Source: PTI
Power companies which seek hike in tariffs due to global factors should also reduce rates when international coal prices soften, an expert has said.
RV Shahi, former power secretary and a power-sector expert, said the compensatory tariff is a variable tariff and it should be revised both ways.
Welcoming power sector regulator CERC's order to provide a compensation package to private companies like Adani Power and Tata Power for increase in the cost of international coal, Shahi said, "CERC has recognised, if there is a change in law in Indonesia, which leads to increase in the price of coal from that country for the companies setting up thermal power projects here, they (firms) should be compensated."
"The companies, which are increasing their tariffs due to increase in price of coal from Indonesia, should also revise the tariff downwards if international prices fall."
Earlier this month, the CERC, in its order, said Adani Power should be granted compensation package for its Mundra project which would provide a cushion against the escalation in cost of imported coal for the plant.
The company had approached CERC in 2012, seeking revision in tariff from its 1,980-MW Mundra project in Gujarat saying increase in imported fuel cost.
In a similar case, CERC allowed Tata Power to increase tariff from its 4,000 MW ultra mega power project at Mundra.
The commission has asked the states which buy electricity from Tata Power's Mundra plant to form an expert panel to decide on compensating the firm for higher cost of coal imports from Indonesia.
Adani Power stock price
On February 12, 2016, Adani Power closed at Rs 24.80, up Rs 0.65, or 2.69 percent. The 52-week high of the share was Rs 60.00 and the 52-week low was Rs 19.65.
The company's trailing 12-month (TTM) EPS was at Rs 0.48 per share as per the quarter ended December 2015. The stock's price-to-earnings (P/E) ratio was 51.67. The latest book value of the company is Rs 25.21 per share. At current value, the price-to-book value of the company is 0.98.
Adani Power Q3 net at Rs 102 crore
Net sales of the company during the quarter under
Adani Power: Outcome of board meeting
Adani Power has informed BSE that the Board of Dir
Adani Power allots 25 lakh equity shares on preferential basis
Adani Power Ltd has informed BSE that the Manageme
Adani Power to sign deal to build $2 bn plant in Jharkhand
The utility, controlled by billionaire Gautam Adan
Short Adani Power, Arvind may test Rs 280: Prakash Gaba
Prakash Gaba of prakashgaba.com recommends shortin
Adani Power gets shareholders nod to convert debt into equity
The proposed special resolution for converting deb
Artech Power Products: Outcome of board meeting
Artech Power Products in its Meeting held on Febru
Experts discuss the need for 'Make in India' campaign
A panel of experts discuss the need for "Make in I