Blame game has begun between Power Grid Corp (PGCIL) and Tata Power over the reported delay in commissioning of the latter?s Mundra ultra mega power project (UMPP) in Gujarat.
PowerGrid says it has completed the installation of associated transmission line as per schedule and that it cannot be held responsible for the delay in commissioning of the generation project. But the private developer maintains that it had to resort to application of chemical coating for the preservation of the installed power equipment in May while awaiting completion of the transmission line by the central transmission utility.
PowerGrid completed the transmission line on September 28 but Tata Power says it will take another four months to commission the first unit of the Mundra project which had become ready for operations as far back as May.
?We went into equipment preservation mode while awaiting commissioning of the transmission system. It will take us another four months to start generation from the Mundra UMPP,? Anil Sardana, managing director, Tata Power, told FE on the sidelines of a conference ?Clean Coal India 2011? held by industry body CII here.
But a senior official in the central transmission utility said it was required to complete the transmission system by September 30 as per the agreement signed with the beneficiary states. But it commissioned the project two days ahead. ?If there are delays on part of the generator now, PowerGrid will have to be compensated suitably by the benefiociary states,? the official said.
However, the PowerGrid official clarified that there was a request from the beneficiary states to complete the transmission line four-five months ahead of the contracted schedule. ?We tried our best but could not comply with the request due to the delay in getting the Right-of-Way (RO) to lay the transmission line,? the official said.
Tata Power has contracted coal supply for the project from Indonesia. However, the Indonesian government has recently made key changes in its coal pricing methodology, which has rendered the Mundra UMPP a loss-making proposition for Tata Power.
Top officials of the UMPP have also written to the power ministry to evolve a mechanism in consulation with beneficiary states where fuel cost escalation is allowed as a pass-through in tariff. Being a tariff-based bid project, fuel cost escalation is not allowed to be incorporated in the tariff. There are also doubts whether Mundra Power will go for full capacity beyond one or two 800 mw units if tariff is not allowed to be hiked.
