Case study --- Power Plant worth core available at Rs 1 only

20-7-17

"They (‘power plant’ Investors, lenders and other stake holders) should have foreseen that there may be a change, but there is no limit to how much one can imagine about the change." Piyush Goyal – Power Minister  @PiyushGoyal had to say these words on the plight of some of the mega power projects In India.

Back in 2006 February, Tata power @TataPower had won the bid for 4,000- MW Mundra Ultra Mega Power Project known as Coastal Gujarat Power Ltd (CGPL) , quoting a price of Rs. 2.26 unit of electricity generated. The project was to run on coal imported from Indonesia. In 2010, Indonesian Government came up with new regulation that coal can be exported at par with International Rates. The price of coal doubled, consequently, power generation became costly, and so it was no more profitable to supply the power at 2.26 Rs. per Unit.   

CGPL’s accumulated loss is 6,457 crore where as its paid up equity capital is Rs. 6,083 crore. Its outstanding loan is Rs. 10,159 crore. Tata power has also burned its money by lending Rs. 4,460 crore. Supreme Court has disallowed compensatory increase in tariff to the company. Tata power claims that if the tariff is not increased company will lose Rs. 47,500 crore. Moreover, tariffs of solar power and other renewable source of power have come down to Rs. 2.97 per unit.

Looking for rescue, 4,000- MW Mundra Ultra Mega Power Project, Tata power has written to the centre proposing to sell 51% equity for a nominal fee of Rs. 1.

Q. Which step of planning has been pointed out by power minister?

Q. Which limitation of planning has been pointed out by power minister?

Q. How many Environment elements have seen the change since 2006?

Q. How many concepts of plan have been involved?

Q. How many limitations of planning suffered by Tata Power

For more read at

http://www.thehindubusinessline.com/companies/tata-power-offers-to-sell-51-stake-in-mundra-for-re-

1/article9732822.ecehttps://qz.com/956477/a-sluggish-economy-and-cheap-renewables-are-choking-indias-giant-coal-power-plants/

COMPOSED BY   PATHAK SIR   @pathaksirbst ( at twitter)

send your views at avnishpathak18@gmail.com or at  @pathaksirbst ( at twitter)

To be continued.....