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 Urban

16 Oct 2025

Shivraj Singh Chouhan inaugurates ICAR-IIMR admin block in Ludhiana

Union Agriculture Minister Shri Shivraj Singh Chouhan recently inaugurated the administrative building at the Indian Council of Agricultural Research – Indian Institute of Maize Research (ICAR-IIMR) in Ludhiana, Punjab. During the visit, he interacted with maize stakeholders, farmers, rural development scheme beneficiaries, and women self-help group (SHG) members. He said that under the leadership of Prime Minister Narendra Modi, the government’s key goals include boosting foodgrain production, reducing input costs, and improving farmers’ incomes. He highlighted the importance of div..

Technology

16 Oct 2025

Google to Build Rs 10,000 Cr Data Centre in Visakhapatnam

In a major boost to India’s digital infrastructure, Google will establish a 1-GW hyperscale data centre and Artificial Intelligence (AI) hub in Visakhapatnam, Andhra Pradesh. The project, valued at Rs 100 billion, is expected to significantly contribute to the state’s economy and create more than 20,000 direct and indirect employment opportunities. Union Minister of State for External Affairs and Education, Dr Pemmasani Chandrasekhar, highlighted that this landmark investment by Google will help position Andhra Pradesh as a prominent digital hub under the “Swarandhra Pradesh” vision. ..

Infrastructure Urban

16 Oct 2025

TCIL honoured with HR Excellence Award 2025

Telecommunications Consultants India Limited (TCIL), a Miniratna Schedule ‘A’ PSU under the Department of Telecommunications, has been honoured with the HR Excellence Award at the Fortune Leadership Awards 2025, held at Radisson Blu Plaza, Delhi. The accolade acknowledges TCIL’s outstanding HR practices promoting employee development, innovation, and inclusivity. The award was presented by Dr. Dinesh Upadhyay, Former Member, Ministry of AYUSH, and Shri M. S. Nethrapal, IRS, and received by Shri P. Suresh Babu, CGM (HR), in the presence of distinguished leaders from various sectors. Bet..