CERC revises tariff for NTPC's Kawas project

Following a petition from the public sector power generation major, NTPC, the Central Electricity Regulatory Commission (CERC) has revised the fixed annual tariff for the utility`s 656.20 MW Kawas gas-based power project for the period April 1, 2004 through March 31, 2009. The apex regulator made this revision, in accordance with the provisions of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004, after considering the impact of additional capital expenditure incurred during 2008-09. The fixed charges for the generating station were originally determined by CERC, vide its order dated November 16, 2006. Subsequently, the Commission revised these charges vide its orders dated February 3, 2009 and December 30, 2009, respectively. 

 Seven western-region beneficiaries of this project, namely Madhya Pradesh Power Trading Company Limited, Maharashtra State Electricity Distribution Company Limited, Gujarat Urja Vikas Nigam Limited, Chhattisgarh State Electricity Board and the Electricity Departments of Goa, Daman & Diu, and Dadra & Nagar Haveli, will bear the difference between the last revised charges and those now approved by CERC, in three equal monthly installments. In addition to these charges, NTPC would be  entitled to levy other charges, like incentive, claim for reimbursement of income-tax, taxes and cess, in accordance with the 2004 regulations.

Pertinently, Kawas project, located in the Surat district of Gujarat, was commissioned in March 1993 to supply power to the seven western region states, namely Madhya Pradesh, Gujarat, Maharashtra, Goa, Daman & Diu, Dadar Nagar Haveli and Chattisgarh. The project, constructed at an expense of Rs 1,599.57 crore, has four gas turbines of 106 MW capacity, each, and two steam turbines of 116.10 MW capacity, each.