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Tata Power to run Mundra UMPP at low capacity

Tata Power to run Mundra UMPP at low capacity

Tata Power Company is preparing contingency plans to minimise loss from running the plant as the cost of imported coal from Indonesia has risen sharply. The company plans to run the 4,000-MW Mundra unit at low capacity, at around 72-78 percent, and is considering blending the fuel with che­aper coal of low calorific value to reduce cost of generation. This would lead to lower power supplies to Gujarat, Maharashtra, Punjab, Haryana and Rajasthan which have signed pacts to buy  power from the unit at Rs 2.26 a unit.

Tata Power has approached the Power Ministry expressing its concerns over the viability of tariff and seeking an increase in rates to pass on the impact of escalating prices of coal imported from Indonesia to customers.

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