Tata Power's ultra mega power plant at Mundra – Coastal Gujarat Power Ltd's (CGPL) - net loss widened by 12% to Rs 431 crore in the first quarter ending June.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) have also turned a negative Rs 77 crore, down 135% year on year.
On Monday, Tata Power announced its quarter results wherein revenue from CGPL reduced. This subsidiary of Tata Power had earned revenue of Rs 1,217 crore in the first quarter of previous fiscal as compared to Rs 1,175 crore now.
In the last quarter, the power generation from this 4,000-megawatt plant had reduced resulting in lower revenue. During the quarter, the company generated 5,310 million units (mu) as against 5,420 mu a year ago.
Among the factors that have led to rise in losses is higher fuel costs "as Free on Board price' or transportation cost of coal was higher by $17 per metric tonne.
For the entire last fiscal, CGPL's accumulated loss stood at Rs 6,457 crore.
A couple of months ago, CGPL had approached the procuring states to arrive at alternative solutions to minimise operating losses. This includes "offer of 51% shareholding in CGPL at a nominal value to procurers subject to grant of compensatory tariff to CGPL for the entire period of Power Purchase Agreement (PPA)," stated the results filing.
According to reports, the company is ready to sell 51% of its equity for Re 1. CGPL has been in trouble ever since imported coal prices procured from Indonesia became expensive due to changes in regulations in Indonesia of levying international rates on coal being exported from the country. Last year, the Supreme Court rejected Tata Power's appeal for a higher tariff, maintaining that PPA cannot be revised for a compensatory tariff.
Meanwhile, parent company Tata Power posted a 126% jump in consolidated net profit to Rs 163.78 crore mainly driven by strong performance from renewables and coal.
