We established and commissioned an Ash bagging unit to achieve 100% Fly Ash utilization. Either keep the plant closed and continue buying power at Rs 15-17 per unit from the power exchanges, or buy it at a fixed cost of Rs 4.5 per unit. CGPL is currently building the Mundra Ultra Mega Power Project, also sometimes referred to as the 'Tata Ultra Mega power project, a 4000 megawatt (MW) power station. Compared to other sub-critical plants in India, Mundra UMPP would use 1.7million tonnes of less coal per year while generating the same quantum of power. Tata Power is arguing that CERC has the power under Section 79(1)(b) of the Electricity Act, 2003 to revisit/restructure the tariff for a power project if the project has lost its viability and it has become Last Updated at May 9, 2022 21:53 IST. The loss led to an erosion of Tata Power's net worth by over 3800 crore in 3 years. Your support through more subscriptions can help us practise the journalism to which we are committed. Topics Mundra super critical units 6 & 9 achieved synchronization from boiler light up in less than 3.5 months. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. over three times its actual area.. There were two choices. This situation, coupled with state-run thermal power plants operating at 50 per cent capacity, has forced state government to buy 100 million units of power from the power exchanges on a daily basis which is costing about Rs 150 crore. The power station is located south of Tunda Wand village in Mundra Taluka, Kutch district of Gujarat, India. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. The capacity of the project is 4,000MW with 5 units of 800MW each. Plant capacity is 4620 MW, comprising of 9 units with 4 units of 330 MW and 5 units of 660 MW. For your UPSC prep, a special sale on our ePaper. Analysts believe that going ahead Tata Powers focus on consumer facing business will reduce its exposure to businesses facing imported spot coal, such as Mundra, that have dragged the overall return on capital employed, and can present monetisation opportunities in future. The work we do is funded through generous donations of foundations and individuals. APL, Mundra which is located in APSEZ, (Adani Port and Special Economic Zone). The 330 MW units are based on sub critical technology and the 660 MW units are based on supercritical technology. District Court Rules World Bank Cant be Sued. The SC says so, too, KL Rahul tests positive for Covid before Windies tour, Samantha says situation with Naga Chaitanya not amicable, Why you should read Sport Integrity or Symbol of Marriage, Close shave for TDP leaders as boat dock collapses in Andhra Pradesh. For ensuring 100% utilization of Fly Ash, we have established a fine Ash bagging unit at Mundra for bagging and disposal of fly ash generated due to our process. The move is expected to reduce the burden of buying 4000-5000 MW of electricity from the power exchanges daily. The Coastal Gujarat Power Limited (CGPL) is a wholly owned subsidiary of Tata Power. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp. No date has been set for his sale closure, which is pending regulatory clearances from the authorities, The company had requested Central Electricity Regulatory Commission to allow a tariff hike to about Rs 3.00 per unit[14], The company had petitioned the CERC to rule whether the company can claim relief under any/all of the following:[15]. At present, GUVNL is paying Rs 150 crore daily for purchasing electricity from power exchanges. The Mundra power project is also the fastest project implementation ever by any power developer in the country with a record completion of inception to synchronisation within 36 months. Tata Power|electricity, Dev Chatterjee | The scheme provides for the amalgamation of CGPL with Tata Power and will result in numerous benefits such as streamlining the corporate structure and consolidation of assets and liabilities of CGPL within Tata Power. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. 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CGPLs long-term debt comprises only Rs 3,790 crore of bonds and debentures. 159 of 2012", "CERC defers decision on Tata Power plea", http://www.cercind.gov.in/2012/orders/Signed_Order_159_2012.pdf, States of India by installed power capacity, Indian states ranking by households having electricity, https://en.wikipedia.org/w/index.php?title=Mundra_Ultra_Mega_Power_Plant&oldid=1076659529, All articles with bare URLs for citations, Articles with bare URLs for citations from March 2022, Articles with PDF format bare URLs for citations, All Wikipedia articles written in Indian English, Infobox mapframe without OSM relation ID on Wikidata, Thermal power station articles using Infobox power station, Creative Commons Attribution-ShareAlike License 3.0, Article 13 of the PPA due to Change in Law, Article 12 of the PPA, pertaining to Force Majeure. The power plant is owned by Tata Power. [9] The Indonesian government's decision in 2010 to change its mining law to bring coal price exported from Indonesia in line with the international market[10] caused an increase in coal price and under-recovery of costs at Mundra UMGPP (and similarly impacted Adani Power's 4620 MW Mundra plant). Log in to our website to save your bookmarks. On Friday, Tata Power shares closed 2.77% higher at 245.25 apiece on NSE. To help the state and region utilities evacuate electricity from the plant and into the grid, Adani Power had constructed two power lines. Kindly visit the Manage my subscription page to discover the benefits of this programme. Each machine has an operational capacity of 18 TPH and the unit operates three such machines giving it a total capacity of 54 TPH. I assure that there will be no shortage of power in Gujarat in the run up to Diwali.. If its foray into some complementary consumer-facing businesses is successful, it could present interesting long-term monetisation opportunities, in our view, Morgan Stanley report said. Canada Visa Express Entry: Low cut-off scores boost demand, Broadcom intends to make VMware its flagship brand. The Indian Express on Tuesday had reported that Gujarat is currently facing a grim situation as 6400 MW of thermal and gas-fired power plants are lying idle due to high prices of imported coal and natural gas. When contacted, a Tata Power spokesperson said: "Presently the provisions for a long term resolution plan are still under discussion and not yet finalised and we cannot therefore comment regarding the same.. This is the worlds first thermal project based on supercritical technology to get registered as a CDM Project under UNFCCC. In 2007, Tata Power had acquired a 30% stake in two Indonesian thermal coal companies owned by PT Bumi ResourcesPT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia for about $1.1 billion[13] as part of a strategy to provide low cost coal for the Mundra UMPP. Copyrights 2022 Business Standard Private Ltd. All rights reserved. As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Boris signs off with 'hasta la vista': What does the phrase mean? The latter is the first and longest HVDC system by a private player in India. The plant was also the first to introduce the 660 MW supercritical power technology to India with the commissioning of its Unit # 5 in December 2010 following installation of four 330 MW units. The Gandhidham railway station is located 50 km away. Do not miss out! Support quality journalism and subscribe to Business Standard. 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All Rights Reserved, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on WhatsApp (Opens in new window), All eyes on the US CPI inflation numbers: Will cryptos rise again? The plant is near National Highway 8A and adjacent to the sea. CGPL will provide Tata Power with a huge tax break of up to Rs 10,000 crore over multiple years. The committee also asked Tata Power to share 1 profits from its Indonesian mines subject to a floor of 15p/kWh; and increased the normative plant availability factor to 90 per cent for the same capacity charges. San Francisco Bay Area, Silicon Valley), This is the parent Organization of the sub-organization, Operating Status of Organization e.g. The demand for power is expected to rise further in coming days as the weather department has predicted that heatwave sweeping through the country will intensify. The state government has given consent to this purchase, said a state government official about the power procurement from Mundra plant which used imported coal as fuel and was not supplying power to Gujarat due to higher cost of coal. [17], Central Electricity Regulatory Commission, "Tata Power commissions Mundra UMPP's first 800 MW unit", "Business Line: Companies News: Tata Power's Mundra plant Unit II becomes operational", "Tata Power synchronises third 800 MW unit at Mundra UMPP - PTI", "Tata Power synchronises unit 4 of Mundra UMPP", "Tata Power commissions Mundra UMPP 5th unit", "Tata Power sees Rs 3,000 crore equity erosion in Mundra UMPP project: Sources - Economic Times", "Rajasthan break to put Tata's Mundra power in open market", "On Mundra UMPP, great confusion, no clear solution - Money - DNA", "Mundra UMPP has eroded Tata Power's net worth by Rs 3,800 crore in three years: Anil Sardana", "Major relief for Tata Power, Adani in compensatory tariff case", "Tata Power cuts sale consideration for Arutmin mine in Indonesia to $246 mn", "Tata Power seeks higher tariff for Mundra UMPP", "Record of Proceedings in Petition No. Horoscope Today: Money astrological predictions for Jul PM Modi congratulates India's 15th President Droupadi M All jobs businesses cut in pandemic are back, but not w Inflation has outpaced wage growth. Losses in Q3FT21 fell by Rs 69 crore to Rs 95 crore on the back of subdued coal prices. In its analysts call, Tata Power said its mining permit for its coal mine in Indonesia, PT Kaltim Prima Coal (KPC) was renewed for 10 years by Indonesia. This ultra mega project established Indias first 800-megawatt unit supercritical technology thermal power plant, which is likely to be the most energy-efficient, coal-based thermal power plant in the country. Coastal Gujarat Power (CGPL), the wholly owned subsidiary of Tata Power, turned cash-positive in the October-December quarter of 2020 after fuel under recovery reduced further to Rs 0.32 per unit from Rs 0.40 per unit a year ago on lower imported coal prices. Imported coal from Indonesia is used for the project. NABL accredited P&M lab established at Mundra, Have been certified for all the three standards under the umbrella of IMS, ISO 14001 Environmental management system, NECA awards received from Ministry of Power and BEE for 2 subsequent years from Hon'ble President of India, Received 5 S certification in Excellence Category. [16], On 25 October 2012 the CERC admitted the petition for hearing since the consultative process under Article 17.3 of the Power Purchase Agreement (PPA) between Coastal Gujarat Power Ltd and the lead procurer, Gujarat Urja Vikas Nigam Limited (GUVNL) had failed. You are now subscribed to our newsletters. Edit Lists Featuring This Company Section, Lenders' haircut to help Tata Power revive generating firm Coastal Gujarat, DealsBuzz: OkCredit raises $15.5 million from Tiger Global, others. The company stand is that the definition of law under the PPA is an inclusive (and not exhaustive) definition. The tax break is expected to be value accretive for Tata Power as its profitability will improve on deleveraging and asset divestment gains.