Mumbai: Tata Power Ltd will not agree to lower tariffs for its proposed acquisition of Prayagraj Power Generation Co. Ltd as suggested by the electricity regulator in Uttar Pradesh,a company executive said on the condition of anonymity.
The regulator recently said Tata Power would receive the plant without any associated debt and interest costs; so it can afford to reduce the power tariff by 40 paise once the transaction is completed.
During a hearing on 6 March, the UP Electricity Regulatory Commission observed: “There is no denying the fact that now with zero debt, the element of interest on loan, which would be part of the fixed cost, becomes zero.
