The power tariff of the GMR Kamalanga Energy limited, Dhenkanal has been revised following an order passed by the Central Electricity Regulatory Commission (CERC) on November 16. The company had earlier applied for determination of the tariff under the PPA.
While the GMR Kamalanga was being reimbursed at Rs 2.75 per earlier, now it would be entitled for a price of FY 14 which is approximately Rs 3.97/unit and Rs 3.4/unit thereafter.
Commenting on the development, company’s business chairman (energy) GBS said: “This is another reaffirmation of the Government’s and the CERC’s resolve to solve the problems of the power sector. The revised tariff will go a long way in improving profitability and liquidity of the Group.”
This order would entitle the GMR Group to collect all the arrears of power supply from the GMR Kamalanga Energy limited to the Grid Corporation of Odisha (Grdico) for power supplied till September 2015. It will also help improve company’s EBITDA (Earnings before interest, taxes, depreciation and amortisation) by Rs 120 crore.
Around 85 per cent of the plant’s power generation capacity is tied up through long-term Power Purchase Agreement (PPA), which Includes PPA with Gridco for off taking 25 per cent of the power generated from the power station.
The GMR Kamalanga Energy limited operates 3x350 MW coal-based thermal power plant at Kamalanga village in Dhenkanal district.
