+
CERC to compensate imported coal-based power producers
POWER & RENEWABLE ENERGY

CERC to compensate imported coal-based power producers

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

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

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?