Ahmedabad: Adani Power Ltd today posted a loss of ₹1,180 crore for the third quarter ended December 31. The net loss in the corresponding quarter of the same period a year earlier stood at ₹1,311 crore.
Consolidated total income for the quarter was ₹6,667 crore, up from ₹4,916 crore in the corresponding period of 2017-18, the company said. This increase was due to improved plant load factor, higher billed availability and better merchant realisations.
The average plant load factor (PLF) achieved during the third quarter of 2018-19 was 73%, against 58% in the comparable period of 2017-18.
Consolidated EBITDA during the quarter grew by 77%, year on year, from ₹777 crore to Rs1,372 crore as a result of higher revenues and lower administrative costs.
“We are witnessing rapid progress in the resolution of regulatory issues that have affected cash flows of our projects in the past. We hope to see timely approval of supplementary PPAs (power purchase agreements) by the CERC, which will help the Mundra power plant to operate sustainably. We have also received a substantial amount of compensatory payments under ‘change in law’ for domestic coal shortfall for the Tiroda and Kawai plants. We continue to see a long-term growth potential in the thermal power sector, which is bolstered by robust economic growth and the government’s fruitful efforts in addressing challenges faced by the sector," stated Gautam Adani, chairman of the Adani group.
Adani Power had entered into two power purchase agreements of 1,000 MW each with the Gujarat government at ₹2.35 per unit and ₹2.89 per unit for its 4,620 MW plant in Mundra. It had entered into a similar accord with the Haryana government at ₹2.94 per unit for 1,424 MW.
The project ran into trouble when the Indonesian government increased the price of coal, but the power purchase agreements did not allow Adani Power to pass on the increase in fuel cost.
The company approached the Central Electricity Regulatory Commission to consider increases in the power tariff after customers in Haryana and Gujarat refused to pay higher rates for electricity generated from its imported coal-based plant in Gujarat.
In October, the Supreme Court threw a lifeline to three troubled power projects in Gujarat, including Adani Power’s Mundra project, by directing the CERC to decide on PPAs.