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.
Adani Enterprises is looking forward to margin improvement in FY14 , once it starts charging higher tariff from consumers.
Salil Garg of India Ratings said, “Only on those power generators or those new Independent Power Producers (IPPs) who are not operating on the cost plus model and those who have either bid on a fixed price basis and they are unable to pass through the increased cost of the imported coal back to the consumers, will be impacted by this decision.â€
Speaking to CNBC-TV18, Anil Sardana, MD of Tata Power says the government needs to take more steps to bring reforms in the sector.
Pramod Deo, chairperson, CERC, says that the hearing process is complete and the orders on petitions moved by Tatas and Adanis seeking higher tariff for electricity generated from their imported coal-fired projects in Gujarat will be announced soon.
"Power stocks are underperforming due to routine profit booking," says Harshavardhan Dole, analyst, IIFL in an interview to CNBC-TV18. Dole expects the power sector to perform well over the 6-12 months, as the sector heads into recovery.
Private power producer Tata Power posted a lower than expected consolidated net loss of Rs 83.8 crore in the second quarter of the current financial year as against a loss of Rs 1,187 crore in a year ago period. The company‘s consolidated net sales increased 17.8% to Rs 7,399 crore from Rs 6,282 crore during the same period.
Anil Sardana, MD, Tata Power, says that the revenue of the company grew by above 20%. Positively, the Mundra unit which was commercialized in July-end has in the last 15 days is working at 100% plant load factor.
Last week 21 Indian states plunged into darkness as the northern, north-eastern and eastern grids collapsed. Power was restored within the day but, India's abysmal infrastructure created headlines around the world. An embarrassed government put up a brave defense.
News of an important defence deal that could have been won by a consortium of companies including L&T is doing the rounds. MV Kotwal, Member of L&T Board & President-Heavy Engineering, tells CNBC-TV18 that the company has partnered with Tata Power and HCL for the deal.
In an exclusive interview to CNBC-TV18, managing director of Tata Power Anil Sardana says that a tariff revision for its Mundra ultra mega power project is not yet a lost cause.
Managing director of Tata Power Anil Sardana tells CNBC-TV18 that they have entered into a joint venture with Exxaro, a South African coal company, to create energy assets in the region.
With majority of the power generation in India coming from coal, Anil Sardana, the managing director of Tata Power tells CNBC-TV18 that the PMO's directives are a step in the right direction.