NEW DELHI: In a significant relief for Reliance Power's 3,960-MW Sasan project, the regulator has approved an annual hike of 9 paise or 7 percent in tariff over its entire 25-year contract period, that translates into an extra compensation of Rs.300 crore per annum.
The approval, based on what is called a change in law petition filed by the Reliance Group, has been awarded by the Central Electricity Regulatory Commission to Sasan Ultra Mega Power Project, set up in the Singrauli district of Madhya Pradesh.
"A one time compensation of Rs.271 Crore is also granted by regulatory commission till 31st July 2015," the company said in a statement, adding the regulator's directive also eases the way for future pass-through of compensation for the power project.
This, by way of a mechanism for the future payments toward changes in electricity duty rates and energy development cess that has also been approved by the regulatory commission in its 46-page order.
Reliance Power has a large largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating capacity of 5,945 MW.
In April last year, the Anil Ambani-led Reliance Group had announced that it had fully attained commercial operations of the Rs.27,000-crore Sasan ultra mega power project, 12 months ahead of schedule, with all the six units generating 3,960 MW of electricity.