Power Minister Piyush Goyal today met representatives of five states, which are reeling under coal shortage. Sources told CNBC-TV18 that states could ask power developers to increase power generation.
Adani Power and Tata Power, which also supply power to these five states, approached the minister to seek an early resolution in the compensatory tariff matter. However, it is leant that the Centre is unlikely to intervene.
According to sources, the government has no locus standi on compensatory tariffs as the power purchasing pacts are an understanding between procurers and developers, which are legally enforceable and governed by its terms and conditions. The power producers have been seeking an early solution to the compensatory tariff row.
It may be recalled that the Supreme Court last week 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 has asked the tribunal to hear the matter expeditiously.
After the meeting, the Power Minister promised that he would look into clearing the coal supply bottlenecks and ramp up production.
“Coal has been supplied as per schedule to all plants. Because of the delayed monsoon, hydel power was not produced to the extent it should have been. To make up for that, coal-based production of electricity was increased by nearly 20 percent in June and July due to which the nation did not have to face the severe problems it could have faced,” Goyal said.
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