France-based Thales will hold 26% stake while BEL would hold the rest in the JV that would manufacture radars for Indian and global markets
Tulip Telecom has missed its deadline for redeeming FCCBs. The shares are down 10% in the last couple of days and there could be further downside on the back of this uncertainty, says Nomura
CERC has the jurisdiction to regulate/revise or consider the appeal for tariff revision in case the power generating company sells power to more than one state and has signed legally binding PPAs, said the Attorney General of India. This may benefit Adani Power and Reliance Power, finds Nomura
Power generating companies have a glimmer of hope now in increasing power tariffs, says Nomura given that the Attorney General of India (AG), G Vahanvati, has told the Forum of Regulators (FoR), that the Central Electricity Regulatory Commission (CERC) has the jurisdiction and can regulate/revise electricity tariffs if legally binding contracts (PPAs—Power Purchase Agreements) have been signed by the generating company (IPP) with discoms across multiple states. The AG opined:
(a) CERC is the appropriate commission which has the ‘jurisdiction’ in cases where the generating company is supplying to more than one state. Whether the generating company originally had just one state as a buyer and thereafter added more units/capacity and started supplies to buyers/beneficiaries in other states, is immaterial.
(b) CERC has the jurisdiction to and can regulate/revise signed PPA tariffs (between the generating company and state discoms). Whether the relief is to be granted or not, is ultimately for the appropriate commission (CERC) to consider.
(c ) In case of the anomalous situation where an SERC has already passed a tariff order while the other state refuses to acknowledge the same, CERC is the appropriate commission and it is immaterial whether an SERC has passed a tariff order or not (relating to the power plant/generating company in subject).
In essence, CERC has the jurisdiction to regulate/revise or consider the appeal for tariff revision in case the generating company sells power to more than one state and/or have signed legally binding PPAs, says Nomura.
The implications for IPPs (independent power producers) are as follows, according to Nomura:
(a) Adani Power and Reliance Power are the most likely beneficiaries given their fixed tariff PPAs in Mundra and Krishnapatnam UMPP. Adani’s appeal, seeking revision in tariff related to PPA with GUVNL (Mundra II, 1000MW at Rs2.35/kWh) has been admitted in the Supreme Court while it has also filed petitions with the CERC for PPAs with GUVNL and Haryana SEBs (1424MW with UHBVNL & DHBVNL). Adani’s Tiroda-I PPA with MSEDCL is also under negotiation and a positive outcome may impact the results positively.
(b) Reliance Power’s Krishnapatnam UMPP case is also sub judice (as Reliance seeks stay on encashment of bank guarantee by the procurers) subsequent to which a tariff revision petition would be filed.
(c) JSW Energy and Lanco Infratech can also benefit in respect of their PPAs with MSEDCL (300MW from its Ratnagiri facility) and HSEB (165MW from its Amarkantak facility) plants respectively.
(d) Tata Power could potentially benefit from this development.