In an order that will have implications for the debt-ridden power sector in the country, the Uttar Pradesh energy regulator UPERC has asked Renascent Power Ventures, an arm of Tata Power-backed Resurgent Power Ventures, which had acquired 75% in the Prayagraj Power Generation Company (PPGCL), to offer a discount of 14 paise/unit on the fixed charges to the state power distribution entity (discom).
The regulator’s move is aimed at ensuring that acquirer passes on the benefit of taking over the asset at a discount to the end consumers. PPGCL is a unit of Jaiprakash Associates, which operated the stressed 1,980-megawatt (MW) power plant near Allahabad. The levelised tariff was Rs 3.02/unit earlier; after the Rs 0.14/unit cut, it will be Rs 2.88/unit.
Also read| How Reliance’s Mukesh Ambani is betting on startups to become new e-commerce juggernaut, take on Amazon, Flipkart
Speaking to FE, an official of the UPERC said that the cut in fixed component of tariff will come with certain sweeteners: Renascent Power Ventures would be allowed to sell 10% of the power at market price and the station heat rate (SHR) would be more than normative.
