But Mahavitaran rejected its petition, after which JSW Energy has moved the Maharashtra Electricity Regulatory Commission (Merc), seeking a review of the utility's decision.
JSW Energy Ltd has approached Maharashtra's power regulator for permission to increase power tariff after the state government's distribution utility Mahavitaran refused its request. Sajjan Jindal-controlled JSW Energy wanted to hike tariff after the supply of coal for its 1,200MW imported coalbased plant at Jaigad in Ratnagiri district ran into trouble. It approached Mahavitaran when Indonesia's supreme court cancelled the allocation of a mine to the company by the Indonesian government. But Mahavitaran rejected its petition, after which JSW Energy has moved the Maharashtra Electricity Regulatory Commission (Merc), seeking a review of the utility's decision.
JSW Energy signed an agreement with Merc in 2009 to supply power at '2.71 per unit. The petition filed with Mahavitaran did not say by how much the company wants to raise it now. Mahavitaran rejected JSW Energy's request, saying the company had quoted the agreed rate after taking all commercial risks into consideration. Mahavitaran's managing director Ajoy Mehta confirmed it has rejected JSW's request, but refused to comment further as the matter is pending before the regulator. An email sent to JSW Energy's spokesman on Tuesday remained unanswered. The company has an operational capacity of 1,730MW and projects worth 1,410MW are under construction.
Half the capacity of the 1,200MW Jaigad plant has already become operational. Imported coal-based projects face a wide range of risks, said Kameswara Rao, executive director of international auditing and consultancy firm PricewaterhouseCoopers. "While the price risks are covered in pass-through provisions, there are diverse non-price risks which should be assessed by developers when they plan their sourcing strategy or acquire overseas mines," he said. In many cases, he added, developers are in a rush to acquire resources and so don't prepare their bids well.
JSW Energy Ltd has approached Maharashtra's power regulator for permission to increase power tariff after the state government's distribution utility Mahavitaran refused its request. Sajjan Jindal-controlled JSW Energy wanted to hike tariff after the supply of coal for its 1,200MW imported coalbased plant at Jaigad in Ratnagiri district ran into trouble. It approached Mahavitaran when Indonesia's supreme court cancelled the allocation of a mine to the company by the Indonesian government. But Mahavitaran rejected its petition, after which JSW Energy has moved the Maharashtra Electricity Regulatory Commission (Merc), seeking a review of the utility's decision.
JSW Energy signed an agreement with Merc in 2009 to supply power at '2.71 per unit. The petition filed with Mahavitaran did not say by how much the company wants to raise it now. Mahavitaran rejected JSW Energy's request, saying the company had quoted the agreed rate after taking all commercial risks into consideration. Mahavitaran's managing director Ajoy Mehta confirmed it has rejected JSW's request, but refused to comment further as the matter is pending before the regulator. An email sent to JSW Energy's spokesman on Tuesday remained unanswered. The company has an operational capacity of 1,730MW and projects worth 1,410MW are under construction.
Half the capacity of the 1,200MW Jaigad plant has already become operational. Imported coal-based projects face a wide range of risks, said Kameswara Rao, executive director of international auditing and consultancy firm PricewaterhouseCoopers. "While the price risks are covered in pass-through provisions, there are diverse non-price risks which should be assessed by developers when they plan their sourcing strategy or acquire overseas mines," he said. In many cases, he added, developers are in a rush to acquire resources and so don't prepare their bids well.
No comments:
Post a Comment