The Central Electricity Regulatory Commission (CERC) on Friday approved Adani Power’s revised power purchase agreement (PPA) for its Mundra power project (4,620 Mw) with Gujarat. The relief for the power generator comes after seven years of pleading for pass through of increased cost of imported coal.
The CERC approved the new terms of the PPA and tariff structure for Adani Mundra, which was devised based on the recommendations of a High Powered Committee (HPC) constituted by the Gujarat government last year. The HPC had recommended changes to both parts of the tariff — capacity charge (fixed cost) and energy charge or cost of coal (variable cost).
