Press Information Bureau
Government of India
Ministry of Power
07-December-2011 17:01 IST
Power Tariffs of Mundra and Krishnapatnam UMMP
Coastal Gujarat Power Ltd. (CGPL), a Tata Power Company and the developer of Mundra Ultra Mega Power Project (UMPP), has approached the Ministry of Power for its intervention to address the issue of increase in Indonesian coal price from where the company is sourcing its coal for Mundra UMPP.

A team of officers of Central Electricity Authority (CEA), Ministry of Power and Andhra Pradesh Power Generation Company (APGENCO) visited the site of Krishnapatnam UMPP and has observed that the work has been stopped by the developer inter-alia due to the increase in the prices of Indonesian coal. The State Government has also raised the issue and requested for Ministry’s intervention.

Since the Power Purchase Agreement (PPA) is a legally binding document exclusively between the procurer and the developer, the Ministry has advised the lead procurers i.e. Govt. of Andhra Pradesh for Krishnapatnam UMPP and Govt. of Gujarat for Mundra UMPP that any issue arising therein is to be settled within the provisions of PPA by the contracting parties for which the lead procurer may take necessary action.

This information was given by the Minister of State for Power Shri K. C. Venugopal in a written reply to a question in Rajya Sabha today.