Telugu boothu kathalu(Paata-jnaapakaalu part 1)

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Salil Garg, director- corporates, Indian Ratings says the bidding of Tamil Nadu and Odisha Ultra Mega Power Projects (UMPPs) will lead to a 50-60 percent hike in tariffs. The bidding for the power projects are currently underway. Speaking to CNBC-TV18’s Ekta Batra and Reema Tendulkar, Garg says the hike will be keeping in mind the higher coal prices in both international as well as domestic markets.

“The last bidding took place in 2006-2007. The tariffs earlier did not pass the fuel costs, but now that cost of coal has increased significantly in both international as well as domestic markets, higher tariffs are very much possible,” adds Garg. For domestic coal-based UMPP in Odisha, India Ratings expected bids to be in the range of Rs 2-2.4 per unit, which is nearly 70-100 percent higher than Rs 1.19 a unit for Sasan Power (another UMPP in Madhya Pradesh).