Tata Power seeks cost-linked Mundra tariff pacts with 4 more states
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Tata Power expects to sign agreements with four states to link Mundra plant electricity prices to fuel costs.
- ✓CEO Praveer Sinha said Wednesday, "We are working closely with all of them to get these things finalized." The company hopes Rajasthan and Haryana will sign these new contracts before December end.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Standard
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Tata Power has been seeking tariffs that reflect fuel costs to operate its Mundra plant consistently | Image: Bloomberg
By Rakesh Sharma and Rajesh Kumar Singh
Tata Power Co. expects to soon sign agreements with four Indian states allowing it to charge prices for electricity from its 4-gigawatt plant in Gujarat reflecting higher cost of coal, Chief Executive Officer Praveer Sinha said Wednesday.
The company is seeking to finalize supplementary power-purchase contracts with Rajasthan, Maharashtra, Punjab and Haryana after it finalized a deal with Gujarat to sell power at prices that are in line with fuel costs.
"We are working closely with all of them to get these things finalized," he told reporters on an earnings call. "We expect at least two more states of Rajasthan and Haryana to sign before December end."
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