The reverse trend, where domestic coal based power plants are using more imported coal than ICB plants, is due to a government policy aimed at ensuring continuous electricity generation to meet the rising demand.
This action is in line with the company's objective of repaying debt in CGPL to reduce the periodic debt servicing obligations of CGPL and thus make its operations more self-sustainable, the filing said.
The CAO, in its second monitoring report in relation to audit of CGPL following complaint by fishing communities, said there was a need for rapid, participatory and remedial approach to assess and address project impacts raised by the complainants.
"The tariff increase will reduce CGPL's financial losses and benefit Tata Power Company's (TPC) credit quality. CGPL is a material part of TPC group and its debt accounted for approximately 30 per cent of total consolidated debt as of 31 March 2013," Moody's Investors Service said.
Consumers in five states, including Maharashtra, will have to foot higher electricity bills once the CERC order providing relief for Tata Power's Mundra project gets implemented.
Power sector regulator CERC on Monday said Tata Power should be compensated for the increase in imported fuel cost for 4,000 MW Mundra ultra mega power project in Gujarat.
Speaking to CNBC-TV18, Anil Sardana, MD of Tata Power says the government needs to take more steps to bring reforms in the sector.
The losses at Tata Power's 4,000 MW Mundra project "will mount" with additional units getting commissioned since the company can only partially pass on fuel costs to consumers, global rating agency Moody's said.