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Power | May 22, 2012
#20016

Tata to add 8,500 mw capacity by FY13 end

Tata Power is looking to put up 8,500 mw power plant by the end of FY13, of which 5,050 MW is to come from Mundra and Maithon power projects. 
 
 With Bumi Resources having a capacity of 100 million tonne plus of coal, and the remaining coal supply coming from Mandakini and Tubed, Tata Power has the coal supply in place. Mundra is scheduled to get commissioned in FY13.
 
 Though the tariff of 2.26 per unit is unlikely to be increased by the government, the company has managed to neutralise the effect of the rising fuel cost. Tata Power has decided to transfer 75 per cent of its stake in Bumi Resources to Coastal Gujarat Power, the SPV that controls Mundra project.
 
 This will not only strengthen the fuel position of the project, but will also protect it from the risk of price volatility of coal to be unused in Mundra. Bumi Resources, on its part, is turning out to be a huge asset for Tata Power.

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