Power companies like Adani Power and Tata Power will soon find out just how much compensation they can charge distribution companies for supplying power produced from costlier imported coal; with the CERC ready to deliver its verdict in the case soon
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.
Harshavardhan Dole of IIFL is hopeful that over the next couple of quarters, there will be some realignment of tariff for power companies. He believes there has been substantial cost under recovery both in terms of fuel as well as capital cost for these companies.