APERC resolves issue pending for 24 yrs with Hinduja Power
A new tariff based on the approved capital cost of Rs 5,810.75 cr will come into effect from Aug 1
image for illustrative purpose
APERC has approved the capital cost at Rs 5,810.75 crore as against Rs 7,758 crore claimed by HNPCL. The capital cost claimed by HNPCL varied from time to time (Rs 4,628 crore in 1994, Rs 4,628 crore in 2010, Rs 6,998 crore in 2014, Rs 8,087 crore in 2015, Rs 7,758 crore in 2022
Visakhapatnam: The AP Electricity Regulatory Commission (APERC) has resolved the long pending dispute regarding PPA and other important issues over the claims made by the Hinduja National Power Corporation Ltd (HNPCL). The issues were pending for 24 years. HNPCL has a coal-fired 1,040 MW power plant at Palavalasa near Visakhapatnam. The unit is a merchant power plant and located close to NTPC Super Thermal Power Plant.
APERC has approved the capital cost at Rs 5,810.75 crore as against Rs 7,758 crore claimed by HNPCL. The capital cost claimed by HNPCL varied from time to time (Rs 4,628 crore in 1994, Rs 4,628 crore in 2010, Rs 6,998 crore in 2014, Rs 8,087 crore in 2015, Rs 7,758 crore in 2022.
The key takeaways of the order are APERC approved PPA keeping in view the Supreme Court observations in its order dated 02.02.2022 and to meet part of base load in the future, as the Central Government stopped giving fresh permissions to establish new thermal power plants as per its policy to promote green energy and its international commitment under Paris Agreement for reducing global warming.
Official sources said the term of the PPA has been fixed at 25 years from the date of commercial operation of the project, as against the proposal of 30 years. Third-party sales by HNPCL have been permitted in PPA as agreed by the DISCOMS and HNPCL when the DISCOMS did not require power from it. The ESCROW account proposed to be opened in favour of HNPCL for payment of bills to it is not accepted by APERC.
Ad hoc tariff paid by the DISCOMS to HNPCL from commercial operation date till July 31 has been fixed as final tariff by APERC for that period, the sources said adding because of significant reduction in capital cost and fixation of adhoc tariff as a final tariff, APERC protected the electricity consumers from the huge true-up claims for the past period of six years.
A new tariff based on the approved capital cost of Rs 5,810.75 crore will come into effect prospectively from August 1 and its levelised per unit rate is approximately Rs 3.98 which is very competitive in comparison to any base load power plant.
