Moneycontrol Bureau
Shares of Tata Power jumped over 7 percent while Adani Power soared 5 percent in early trade on Central Electricity Regulatory Commission (CERC) tariff order. In a landmark judgment, the electricity regulator has allowed both the firms higher tariff and compensation for the Mundra power projects in Gujarat.
As per CERC order, Tata Power has been granted compensatory tariff of 52 paise per unit from the period beyond April 1, 2013. It has also been allowed compensation of Rs 329.45 crore for Mundra project. Tata Power’s Mundra project provides electricity to Gujarat, Maharashtra, Rajasthan, Haryana and Punjab.
Meanwhile, CERC has allowed Adani Power gross compensatory tariff of 85 paise against Gujarat PPA and 36 paise against Haryana power purchase agreement (PPA). CERC granted nearly Rs 830 crore compensation for Adani Power's 4,620 MW Mundra plant.
As expected, CERC toned down Deepak Parekh panel recommendations. Deepak Parekh Committee had recommended a compensatory tariff between 45-55 paise per unit for Tata Power and around 60 paise per unit for Adani Power.
At 09:36 hrs Tata Power Company was at Rs 82.55, up Rs 3.85, or 4.89 percent while Adani Power was at Rs 36.75, up Rs 0.30, or 0.82 percent on the BSE.
Posted by Nasrin Sultana
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