MPERC approves MYT for KPL's 300 MW Unit-1 (Korba, Chhattisgarh) supplying MPPMCL via PTC for FY2024-25 to FY2028-29, rejecting capital-cost revaluation despite NCLT takeover.
Petition under Section 64(5) read with Section 62 and Section 86 (1)(a) & (b) of the Electricity Act, 2003 for determination of tariff for FY 2024-25 to FY 2028-29 in accordance with applicable MPERC (Terms & Conditions for Determination of Generation Tariff) Regulations, 2024 against long term power supply to MP Power Management Company Ltd. (MPPMCL) through PTC India Ltd. (PTC) from the 300 MW Unit I of M/s Korba Power Ltd. (KPL) (formerly known as Lanco Amarkantak Power Ltd.) (\'LAPL). Pathadi, Korba, Chhattisgarh coal hased thermal power plant. (Petitioner: 1) Korba Power Limited (formerly
KPL supplies 300 MW (273 MW net) from its Pathadi, Korba thermal unit to MPPMCL through PTC under a 2005 PPA/PSA, restructured via a 2012 Tripartite Settlement. After MPERC's 2024 Generation Tariff Regulations, KPL sought MYT for FY2024-29; earlier solo and co-petitioner filings (P.55/2024, P.129/2025) were remanded for joint filing by KPL and PTC with MPPMCL as respondent, culminating in this petition.
- Approved MYT for KPL's 300 MW Unit-1 for FY2024-25 to FY2028-29; Annual Fixed Charges allowed rising from ₹224.42 Cr (FY24-25) to ₹285.12 Cr (FY28-29).
- Rejected MPPMCL's plea to re-base capital cost using NCLT resolution value of ₹4101 Cr (for entire 4-unit, 2 operating+2 under-construction complex); retained capital cost as per last true-up order for FY2023-24.
- Held acquisition cost is for the generating station as a whole with no unit-wise allocation/reconciliation with audited accounts, so not applicable to Unit-1 tariff under Regulation 18.5.
- Allowed reimbursement of water charges, security expenses and fly-ash transportation expenses only to the extent of MPPMCL's share, per Regulations 2024.
- Held provisional additional capitalisation claims (₹6.42 Cr in FY24-25; ₹102.57/111.07/94.23/2.65 Cr projected for FY25-29) not admissible now; to be scrutinised during future true-ups against audited accounts.
- Upheld maintainability of the joint petition under Section 64(5) read with Sections 62 and 86(1)(a)&(b), rejecting stakeholder objection that trading margin to PTC should be disallowed.
- Petitioner to give 7 days' public notice under Regulation 1.30 before implementing the order and confirm compliance to the Commission.
- Provisional additional capitalisation for FY2024-25 to FY2028-29 to be examined during respective true-ups against audited accounts.
- Any impact of Regulation 18.5 (capital cost post-acquisition) to be reassessed only if reconciled unit-wise data becomes available.
- Continue monthly/quarterly reimbursement of water charges, security expenses and ash transportation costs restricted to MPPMCL's share.
- MPPMCL to continue payments to KPL through PTC as per approved tariff, with trading margin governed by existing PSA terms, not by this tariff order.
- Petition disposed; no further Commission action required absent a fresh true-up or compliance filing.
- • Confirms continued flow of high-cost, long-term coal power into MP's discom power-purchase basket, sustaining upward pressure on retail/OA tariffs for C&I consumers.
- • Sets a precedent that IBC/NCLT haircuts on stressed generation assets need not automatically reduce regulated tariffs unless unit-wise cost reconciliation is furnished — relevant for developers eyeing distressed thermal assets with regulated PPAs.
- • PTC's trading margin remains a commercial matter outside state tariff determination, affecting cost pass-through certainty for any C&I buyer relying on inter-state trading arrangements.
- • Reinforces that ancillary costs (water, security, ash) are reimbursed only pro-rata to the offtaker's share, a useful cost-allocation template for multi-buyer PPAs.
This order is a reminder that regulatory capital cost, not M&A price, drives tariff — an IBC haircut doesn't automatically cut consumer tariffs unless unit-level cost data is furnished. For C&I buyers evaluating power from restructured/acquired thermal assets, expect legacy capital-cost-linked tariffs to persist; scrutinize PPA vintage and true-up risk before treating such supply as a 'cheap' hedge.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.