Ahmedabad: Adani Power Ltd on Monday posted its fifth successive quarterly loss for the three months ended December in a reflection of the crisis in the power sector, hit by a shortage of domestic coal and forced to rely on imports to fuel their power plants.
The company’s net loss on a consolidated basis widened to Rs.619 crore in the period from a loss of Rs.356 crore in the year-ago quarter. Revenue rose 75% to Rs.1,884 crore from Rs.1,079 crore.
Profits were hit by the high cost of imported coal and legal changes in “coal-exporting countries”, said Prabal Banerji, chief financial officer. “Coal linkage and regular supply from the linkage of Coal India Ltd and its subsidiaries is also a must to ensure smooth power generation at optimal cost at our near 10GW (gigawatts) capacity at three plants.”
Adani Power has filed a petition with the electricity regulator Central Electricity Regulatory Commission (CERC) seeking to revise tariffs after coal-exporting countries raised royalty and income tax levies, making the fuel more expensive. A shortfall in supplies by state-run Coal India forced the company and other power producers to turn to imported coal.
“The domestic outlook for the power sector seems set to improve on the back of recent policy measures addressed by the government,” said Gautam Adani, chairman.
This includes the directive by the Prime Minister’s Office to Coal India to sign FSAs (fuel supply agreements) and “to work on coal-pooling mechanism, state electricity board debt restructuring approval by cabinet, rail links for coal evacuation, etc.,” he said. “We see these steps as clear indication of the importance attached to this vital sector and boost for more investment under the 12th five year plan (FY2012-17).”