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September 21, 2011. With no immediate relief in sight on the tariff hike sought by Tata Power Company for its Mundra Ultra Mega Power Project, the company is preparing contingency plans to minimise loss from running the plant as the cost of imported coal from Indonesia has risen sharply. The Tata Group utility plans to run the 4,000-megawatt Mundra unit at low capacity, at around 72-78%, and is considering blending the fuel with cheaper coal of low calorific value to reduce cost of generation. This would lead to lower power supplies to Gujarat, Maharashtra, Punjab, Haryana and Rajasthan which have signed pacts to buy power from the unit at 2.26 a unit.
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