States are hopeful of resolving Mundra issue soon, said Praveer Sinha, MD and CEO of Tata Power. “All the states agreed that this is a low cost power and they would like to continue supply from this power,” he added. Tata Power’s third quarter earnings have showed some signs of improvement.
“The performance has been very good and very consistent for this quarter for Tata Power. Both EBITDA and profits have improved. This is the third quarter continuously that we have improved on EBITDA and profit,” Sinha said.
“We have made some changes in Mundra – one is the coal prices which have come down. However, there are two other things that have happened. One is the blending of coal that has helped us to use different varieties and different types of coal which is helping us to bring down the average cost of coal that is to be used,” he added.
“Secondly, we have been doing a lot of sourcing in a very smart way and that has helped us to spot purchases, distressed sell of coal, which has been there in the market, we have been able to get those coal. That has brought down the average under-recovery,” he further added.
This will continue for some more time typically, he said, as market prices for imported coal has been soft.
“There were some delays in some of the states especially in Maharashtra where the government was formed and the new minister has taken charge just a few weeks back. All the states are working towards resolving this,” Sinha stated.