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Tata Power has raised bills to procurers in accordance with the compensatory tariff from March 2014, said Anil Sardana, CEO and MD.
Addressing the media after the annual general meeting here on Wednesday, he said procurers have a 90-day credit window to pay. Because of this, the first quarter revenues do not reflect receipts of the higher tariff.
An interim order by APTEL (Appellate Tribunal for Electricity) has directed the procurer States to make payments related to billing of March 2014 onwards to be according to the compensatory tariff orders of the CERC (Central Electricity Regulatory Commission).
On Tuesday, while announcing its first quarter results, Tata Power said the compensatory tariff for Mundra had not been accounted for this quarter. Had it been added, the consolidated profit after tax would have been higher by ₹225 crore. Tata Power had posted ₹111 crore loss in Q1 FY15.
On debt reduction, Sardana said that with the sale of an Indonesian mine (for $510 million) and the recently concluded rights issue, the debt equity ratio is back to normative levels. The company is working on selling non-core assets, which include investments in other companies.
On expansion plans, Sardana said Tata Power aims to achieve 18GW (gigawatt) capacity by 2022.
Capital addition in the current fiscal, he said, will amount to about ₹2,500 crore.
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