The power minister has said that State Bank of India is "worried" about its exposure to the Mundra power projects of both Adani Power and Tata Power. He also went on to express concerns over stressed assets in the power sector as a whole. In an interview to CNBC-TV18, Sunil Srivastava, Deputy MD of SBI spoke about the same.
Seven plants will be brought on the stream as soon as Shakti takes effect. Shakti auction has happened, coal mines have been allotted, now some signature was pending with the Coal India Ltd. If they have signed then that will take seven more of (the projects), RK Singh, MoS, Power & Renewable Energy said.
The Supreme Court today set aside the CERC order of allowing compensatory tariff given to Tata Power and Adani Power on the grounds of force majeure.
Contrary to the market's perception of an APTEL order that is said to have struck down compensatory tariff for Tata Power and Adani Power, Anil Sardana, MD of the former says the market has got it wrong and termed the order a "vindication" for the company.
Adani had sought to raise arguments of "force majeure" and "change in law" with respect to change in Indonesian coal laws, saying it had affected its cost of coal
Dole says losing Mandakini block is a sentiment deterrent for Adani Power, but the Jitpur block should help Adani Power tie up coal for its Korba plant
Ranjan Dhawan does not think the impact of SC ruling will be too profound, but feels investors should wait and watch.
According to Jain, CERC's authority had already been upheld by APTEL and the Supreme Court.
SL Bansal, chairman and managing director, Oriental Bank of Commerce, says the bank won't convert any loans to bonds for dicoms in Q4.
RG Gupta said much depends upon the specific conditions under which the hike was allowed by the CERC and the kind of agreement that they had entered into with the power gencos.
CERC has allowed gross compensatory tariff of Rs 0.85 / kWh against Gujarat PPA (vs Deepak Parekh committee recommendation of Rs 0.89 / kWh) and Rs 0.36/kWh against Haryana PPA (vs Deepak Parekh committee recommendation of Rs 0.41 / kWh).
In the last 6-8 months, fair and remunerative price (FRP) had gained momentum, due to which the dependence of these distribution companies (DISCOMs) on banks funding had reduced substantially.
The Deepak Parekh panel has already recommended a compensatory tariff of 45-55 paise for Tata Power's 4,000 MW Mundra plant and a tariff increase to the tune of 60 paise for Adani Power's 4,620 MW Mundra plant.
Representatives of power and distribution companies will unanimously decide the quantum of tariff increase from power plants being fed with expensive imported coal.
Salil Garg of India Ratings said, â€œOnly on those power generators or those new Independent Power Producers (IPPs) who are not operating on the cost plus model and those who have either bid on a fixed price basis and they are unable to pass through the increased cost of the imported coal back to the consumers, will be impacted by this decision.â€
Adani power sees less likelihood of any further litigation on Central Electricity regulatory Commission's order, which proposes to provide compensatory tariff to the company for the power purchase agreements with Gujarat and Haryana.
After providing a relief to Gujarat based-Adani Power, Central Electricity Regulatory Commission (CERC) is likely to come up with an order on the similar tariff hike petition by Tata Power and Reliance Power in 10 days.
Pramod Deo, chairperson, CERC, says that the hearing process is complete and the orders on petitions moved by Tatas and Adanis seeking higher tariff for electricity generated from their imported coal-fired projects in Gujarat will be announced soon.
"Power stocks are underperforming due to routine profit booking," says Harshavardhan Dole, analyst, IIFL in an interview to CNBC-TV18. Dole expects the power sector to perform well over the 6-12 months, as the sector heads into recovery.
The Adani group completed its coal mining exploration programme at the Carmichael mine project in the Galilee basin in Australia. The company said that the project had estimated coal reserves of up to 10 billion tonnes at the mine.
Prabal Banerjee, CFO of Adani Power tells CNBC-TV18 that if the merger with Growmore Trade and Investment, Mauritius was done post the three phases of Tiroda going on stream, APL shares could have seen higher dilution.
In an interview with CNBC-TV18, Ravi Sharma, CEO of Adani Power said that coal shortage is a national issue and not an individual company's concern. He added that companies without integrated business model are likely to be affected by the shortfall.
Ameet Desai, Director of Adani Power tells CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee that the power sector’s budget expectations includes an extension of the benefits under the section 80-IA of the Income Tax Act for several more years.