Additional units to push Mundra UMPP losses higher: Moody's

NEW DELHI: The losses at Tata Power's 4,000 MW Mundra project "will mount" with additional units getting commissioned since the company can only partially pass on fuel costs to consumers, global rating agency Moody's said today.

Tata Power, the country's largest private power producer recently synchronised the fourth 800 MW unit at Mundra Ultra Mega Power Project (UMPP) located in Gujarat.

Coastal Gujarat Power Ltd (CGPL), a wholly-owned subsidiary of Tata Power, is implementing the Mundra project, the country's first UMPP.

"CGPL's losses will mount as additional units at the UMPP are commissioned because the company can only partially pass through this coal-fired plant's fuel costs to customers, given the terms of the PPAs (Power Purchase Agreements)," Moody's said in a report.