Punjab, Haryana to work out fiscal burden following CERC order

Punjab and Haryana discoms today said they are studying the CERC orders allowing Tata Power and Adani Power to recoup losses and increase tariff on electricity generated from Mundra projects.

They said they are working out the actual "financial burden" before taking any call on the issue that pertains to recovery of losses on account of costlier imported fuel from power purchasing states.

The power distribution companies might hold "mutual consultation" with discoms of other affected states for taking a final decision on this issue.

"We are studying the order to work out the likely impact. How much impact will be there (on power utility) could be known only after a detailed study of order," Punjab State Power Corporation Limited (PSPCL), Director (Generation), G S Chhabra said today.

"We are calculating the figures...What will be the overall impact including loss, burden on consumers (on account of CERC order)...Any decision like challenging the order at High Court will be taken once we determine the exact detail," an official of Haryana distribution company said.

Punjab is getting 475 MW of power from Tata Power's 4,000-MW Mundra project in Gujarat.

Haryana has a share of 300 MW of power from Tata Power's project and 1,400 MW from Adani Power project.

The Central Electricity Regulatory Commission (CERC), in its latest order, has allowed Tata Power to recover Rs 329.45 crore as higher tariff and compensation from five states -- Gujarat, Maharashtra, Rajasthan, Haryana and Punjab -- on account of increased price of imported coal for its 4,000 MW Mundra project.

In another order, CERC has granted nearly Rs 830 crore compensation for Adani Power's 4,620 MW Mundra plant. Out of it, Haryana discoms have been asked to pay Rs 409.51 crore as compensation.

PSPCL was looking at 10 per cent hike in power tariff with a projected revenue gap of Rs 2,595.30 crore for 2014-15.

With assembly elections due this year, Haryana government had already announced not to hike power tariff for 2014-15.

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