Tata Power seeks higher rate for Mundra unit

Mumbai : Mumbai August 25, 2011, 0:15 IST:Tata Power chairman Ratan Tata on Wednesday said they were seeking a higher rate for supply from its under-construction 4,000 Mw ultra mega power plant at Mundra in Gujarat’s Kutch district. It is in discussion with the Union government on this.

The revision is being sought due to changes in Indonesian government policy on export of coal from that country, that has pushed up the fuel cost. Mundra is supposed to use Indonesian coal.

Addressing the company's annual general meeting, Tata said he did not blame the Indonesian government for benchmarking exported coal to commercial rates.

Answering queries from shareholders, he said rate revision apart, they were examining options. One was to set up a power plant in Indonesia itself, if the Mundra revision didn’t happen.

Tata Power managing director Anil Sardana said alternatives, if the Mundra revision didn’t happen, included experimenting with low-grade coal from various sources, to keep the plant running. “We are already doing this at our Trombay power plant,” he said.