PTI reported that faced with losses at its 4,000 MW Mundra project due to expensive imported coal, TATA Power has moved the central electricity regulator CERC seeking higher tariff for power generated from the plant.

As per report, TATA Power has petitioned the Central Electricity Regulatory Commission seeking higher tariff for the project and the first hearing of the petition is scheduled for Thursday

Mundra, the country's first Ultra Mega Power Project which is located in Gujarat, is fired by coal imported from Indonesia. However, changes in Indonesian fuel pricing regulations have made the UMPP unviable at existing tariffs.

The company won the Mundra UMPP through competitive bidding by quoting a price of INR 2.26 per unit, a tariff which has now become unviable. Now, the company has sought higher tariff of about INR 3 per unit.

This is the first time Tata Power has moved the CERC, the source said adding earlier it had raised the concerns with the Power Ministry and the concerned state governments.

As per report, if the current tariff continues, Mundra UMPP could see an annual loss of around INR 1,800 crore.

Source - PTI

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