CERC to compensate imported coal-based power producers

09 Jan 2023 CW Team

The CERC in an order on January 3, 2023, said, "In order to ensure that the Petitioner maintains and operate its plant to generate power for supply to the Procurers in compliance with the directions of the MoP (Ministry of Power) under Section 11(1) of the Act, the Commission under Section 11(2) of the Act is required to compensate the Petitioner to cover the cost plus a reasonable margin of profit." The order was passed by the CERC on a petition filed by Tata Power Company.

The MoP in its letter on May 5, 2022 issued directions under Section 11 of the Electricity Act asking the imported coal-based power plants to operate and generate power to their full capacity.

The plants are required to supply power in the first instance to the procurers under the respective PPAs (power purchase agreements), and any surplus power can be sold in Power Exchanges, the ministry had directed.

In cases where the power plants have PPA with multiple distribution companies, and if one distribution company does not schedule any quantity of power according to its PPA, that power will be offered to other beneficiaries and remaining quantity will be sold through Power Exchanges, the ministry had directed.

About the CERC order, the company said in a statement that Tata Power welcomes the decision of the CERC of allowing the Imported coal-based Power Plant full compensation of coal cost and operating parameters for supplying electricity under emergency supply under section 11. "The order is also beneficial for the CGPL (Coastal Gujarat Power) Mundra Plant as it can now recover the full cost incurred for supplying power in terms of the MoP Section 11 directions. We are thankful to the CERC for granting all prayers in our favour," Tata Power said.

Also Read:

General Atomics partners with Bharat Forge
AJAX Engineering to invest 1000 million in new facility

Power regulator Central Electricity Regulatory Commission (CERC) has decided to fully compensate the power producers running imported coal-based plants for higher running costs required for supplying electricity under forced circumstances. The CERC order will come as a relief for imported coal-based power plants which ran to full capacity under the directions of the Ministry of Power for meeting demand. The CERC in an order on January 3, 2023, said, In order to ensure that the Petitioner maintains and operate its plant to generate power for supply to the Procurers in compliance with the directions of the MoP (Ministry of Power) under Section 11(1) of the Act, the Commission under Section 11(2) of the Act is required to compensate the Petitioner to cover the cost plus a reasonable margin of profit. The order was passed by the CERC on a petition filed by Tata Power Company. The MoP in its letter on May 5, 2022 issued directions under Section 11 of the Electricity Act asking the imported coal-based power plants to operate and generate power to their full capacity. The plants are required to supply power in the first instance to the procurers under the respective PPAs (power purchase agreements), and any surplus power can be sold in Power Exchanges, the ministry had directed. In cases where the power plants have PPA with multiple distribution companies, and if one distribution company does not schedule any quantity of power according to its PPA, that power will be offered to other beneficiaries and remaining quantity will be sold through Power Exchanges, the ministry had directed. About the CERC order, the company said in a statement that Tata Power welcomes the decision of the CERC of allowing the Imported coal-based Power Plant full compensation of coal cost and operating parameters for supplying electricity under emergency supply under section 11. The order is also beneficial for the CGPL (Coastal Gujarat Power) Mundra Plant as it can now recover the full cost incurred for supplying power in terms of the MoP Section 11 directions. We are thankful to the CERC for granting all prayers in our favour, Tata Power said. Also Read:General Atomics partners with Bharat Forge AJAX Engineering to invest 1000 million in new facility

Infrastructure Transport

07 Oct 2025

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Infrastructure Transport

07 Oct 2025

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Infrastructure Urban

07 Oct 2025

DHL Renews Rs 1.8 Billion Lease For Panvel Warehouse

DHL Logistics Private Limited has renewed its lease for 317,000 square feet of warehousing space in Panvel, near Mumbai, with Ascendas Panvel FTWZ Private Limited — part of the CapitaLand Group — for five years, according to documents accessed by Propstack.The monthly rent for the facility, located within the Ascent Free Trade and Warehousing Zone, is Rs 18 million, or approximately Rs 56.70 per sq ft per month, the documents revealed. The lease commenced on 1 August 2024 and includes a five per cent escalation from June 2025. DHL has also deposited Rs 141.1 million as a security deposit.S..