Eleven thousand crore rupees of losses, and almost a decade later, Tata Power suffered another hit when, last fortnight, the Gujarat government decided to cancel the tariff hikes given to its power plant; so did others like the Essar and Adani groups who got similar relief in 2018. At a time when a fourth of the prime minister\u2019s Rs 100-lakh-crore infrastructure plan depends upon investments made in the power sector, it is amazing that such little effort has been made to sort out something so critical.<\/p>\n
The story of these plants, with around 11,000 MW of installed capacity, started in the 2000s with a big policy goof up. Till then, India had a two-part tariff for electricity. Since an entrepreneur\u2019s main job\u2014and risk\u2014was to complete a project while keeping costs down, a \u2018capacity charge\u2019 was paid for this. Since fuel costs were typically outside the control of the power producer, these were a \u2018pass-through\u2019\u2014if prices of coal went up, the electricity tariff rose and vice-versa; this part of the tariff was just passed on to the fuel supplier.<\/p>\n","protected":false},"excerpt":{"rendered":"
Eleven thousand crore rupees of losses, and almost a decade later, Tata Power suffered another hit when, last fortnight, the Gujarat government decided to cancel the tariff hikes given to its power plant; so did others like the Essar and Adani groups who got similar relief in 2018. At a time when a fourth of the prime minister\u2019s Rs 100-lakh-crore infrastructure plan depends upon investments made in the power sector, it is amazing that such little effort has been made to sort out something so critical. The story of these plants, with around 11,000 MW of installed capacity, started in […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-363710","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/363710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=363710"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/363710\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=363710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=363710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=363710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}