Adani Power on Wednesday said power regulator MERC has allowed pass through of higher coal prices for its Tiroda plant.
The coal mine allocated to Tiroda plant was de-allocated and the company had to make arrangement for fuel supplies at higher cost. Adani Power arm Adani Power Maharashtra Ltd (APML) runs Tiroda plant.
In a regulatory filing on Wednesday, Adani Power said the compensation to APML has been granted in respect of the 1320 MW power purchase agreement signed on September 8, 2008 by APML with Maharashtra Electricity Distribution Co Ltd (MSEDCL), for its power plant at Tiroda in Maharashtra.
“APML has been allowed compensation on account of non-availability of coal from Lohara coal block by Maharashtra Electricity Regulatory Commission (MERC),” a company statement said.
Tiroda thermal power station has an installed capacity of 3300 MW (5X660 MW supercritical units), of which two units have been tied up under the PPA signed in 2008 and three have been tied up under separate PPAs executed with MSEDCL for 1765 MW.
As per the referred order from the MERC, the de-allocation of the Lohara coal block by the coal ministry would qualify as Change in Law, and APML is entitled to compensation for alternative coal used to meet the shortfall from the commencement of power supply under the PPA.
Further, APML is also entitled to claim carrying costs on the claim amount till the date of the subject order, it added.
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