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Maha CM writes to PM on state's worsening power situation

According to sources, in his letter to PM, Chavan has requested for a meeting of chief ministers of five states to find solution on Tata and Adani Power‘s compensatory tariff dispute.

September 09, 2014 / 16:26 IST
     
     
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    Moneycontrol Bureau

    Worried over the worsening power situation in the state, Maharashtra chief minister Prithviraj Chavan has written to Prime Minister Narendra Modi in a bid to make him aware of the current crisis, sources told CNBC-TV18.

    According to sources, in his letter to PM, Chavan has requested for a meeting of chief ministers of five states to find solution on Tata Power and Adani Power’s compensatory tariff dispute.

    He is learnt to have drawn attention to the fact that a change in law led to dispute arising out of PPAs signed with states and private producers expressing their inability to continue with operations.

    The CM had also met Piyush Goyal and Sharad Pawar on August 30 in this regard.

    In his letter, CM is learnt to have pointed out that the issue of compensatory tariff needs to be solved at the highest level and that the problems faced by the five states call for larger consultation and requires involvement of the central government.

    It may recalled that the Supreme Court on August 25 had stayed the electricity appellate tribunal Aptel’s interim order on compensatory tariff, which allowed Tata Power and Adani Power to charge hiked tariff from March 2014.

    The apex court asked the tribunal to hear the matter expeditiously. Haryana electricity distribution companies had moved SC on August 20 seeking a stay on the electricity tribunal’s interim order.

    Aptel, now on September 11 and 15, is expected to hold the next set of hearings to determine the price that Tata Power and Adani Power can charge state utilities for supplying power from their Mundra plants in Gujarat.

    The decision is likely to have a major impact on these two private power producers. The five states, which are affected by the current impasse include Maharashtra, Gujarat, Haryana, Punjab and Rajasthan.

    first published: Sep 9, 2014 12:54 pm

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