Tata Power CEO: Coal price  hike to push tariffs by 8-10%

New Delhi : Power tariff is likely to increase by 8-10 per cent in the country after Coal India decided to hike the commodity’s prices, Tata Power CEO and Managing Director Anil Sardana has said.

He also warned against early exuberance over the UDAY scheme and claims of electricity surplus by the government.

“Coal price has increased from 13 per cent to 19 per cent. So the minimum increase that will happen, will be 13 per cent for thermal. If the variable price will go up by 13 per cent, then the average price of power will go up by 8 to 10 per cent,” Sardana told PTI.

Last month Coal India had increased weighted average coal prices by 6.2 per cent over the current price to garner additional revenue of Rs 3,234 crore this fiscal.

Commenting on UDAY scheme, meant for the revival of debt ridden discoms, he said: “At this stage nothing has changed. It is too early to assume they (discoms) will come out of their challenges and start to buy more power. They just got bonds. They are paying for arrears. You have to give them more time.” “In past also we had many schemes, which always attempted and assumed that they will reduce their losses and improve their performance. If that does not happen then rest part of UDAY will sequentially has a challenge. One has to wait and see how actually they change their performance.”

On the recent Appellate Tribunal for Electricity (APTEL) order setting aside compensatory tariff allowed by Central Electricity Authority (CERC), he explained, “CERC adjudicated under removal of difficulties. It is not the right way to do but force majeure is the right way to do.”

He also indicated that the capex during the fiscal will be Rs 2,500 crore, as has been in past few years.

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