GMR Revises Power Tariff Of SPV In Odisha

18 November, New Delhi

Engineering major GMR Group Wednesday said it has revised power tariff for GMR Kamalanga Energy limited, an SPV of GMR Energy Limited following an order passed by Central Electricity Regulatory Commission (CERC).

GMR Kamalanga had submitted an application to CERC for determination of the tariff under the Power Purchase Agreement (PPA). Pending order of CERC, GMR Kamalanga was being reimbursed @ Rs. 2.75 per unit of total tariff.

Consequent to the CERC order, GMR Kamlanga will be entitled for a price of FY 14 which shall be approximately Rs 3.97 per unit and Rs 3.4 per unit thereafter, a statement from the company said. Commenting on the development GBS Raju, Business Chairman- Energy, said: This is another reaffirmation of the governments and regulators resolve to solve the problems of the power sector.

We are pleased to note that CERC has passed this tariff order which will go a long way improving the profitability and liquidity of the group. This long- pending order would entitle GMR Group to collect all the arrears of power supply from GMR Kamalanga Energy limited to GRIDCO for power supplied till September 2015. Going forward the order will help improve companys EBITDA by Rs 120 crore. Around 85 per cent of plants power generation capacity is tied up through long term PPA which Includes PPA with GRDICO, Orissa for off taking 25 per cent of the power generated from the power station, the statement said. GMR Kamalanga

Energy limited owns and operates 3×350 MW coal based thermal power plant at Kamalanga village, in Dhenkanal district, Odisha. Its unit 1 was commissioned in April 2013, unit 2 in November 2013 and unit 3 in March 2014. The Power Ministry has granted it the mega power project status.