Tuesday, May 7, 2013

Tata, Adani seek to raise power tariff in Gujarat; Modi govt may seek Deepak Parekh\'s help

8 May, 2013,


The fate of giant power stations owned by the Tatas, Adani Group and many others that are seeking to raise tariffs to be viable is delicately poised as the Gujarat government wants a fair and amicable resolution to the pricing dispute, but a section of the bureaucracy is taking a hard line.

Industry is cautiously optimistic as the state government plans to involve eminent banker HDFC Chairman Deepak Parekh, a renowned troubleshooter who has resolved many vexed problems, including the seamless transition of Satyam Computers from a huge corporate scam, to thrash out the issue.

Parekh has also chaired panels on the power sector in the past, including the committee that opened the bids for the ultra mega power projects (UMPP) at Mundra and Sasan, which were awarded to Tata Power BSE 0.27 % and Reliance Power BSE -0.58

respectively. The dispute over tariff revision for plants that depend on imported coal erupted after state utilities that had signed contracts to buy electricity refused to renegotiate tariffs. Last month, the central electricity regulator ruled that power companies should be paid higher tariffs. It said the \"compensatory tariff\" should be determined by a committee comprising top officials, company executives, a financial analyst and an eminent banker. Government and industry sources said the authorities had already approached Parekh to head the committee. Parekh remained unavailable for comment.

News From: http://www.7StarNews.com

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