Tata Power net loss at Rs 329 cr
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Tata Power slumped into consolidated net loss of Rs 328.92 crore during the third quarter ended December 2012, bogged down by impairment charge of Rs 600 crore related to its Mundra Ultra Mega Power Project.
The country's largest private power producer had posted net profit of Rs 297.95 crore in the October-December quarter of 2011.
The total income from operations climbed, however, to Rs 9,039.31 crore in the third quarter of current financial year. In 2011-12, it was Rs 6,659.87 crore, Tata Power said in a regulatory filing.
Impairment charge of Rs 600 crore with regard to its flagship 4,000 MW Mundra Ultra Mega Power Project (UMPP), which is grappling with high fuel costs and low tariff realisation, pushed the company into the red.
Imported coal fired-Mundra, the country's first UMPP, is being implemented by Coastal Gujarat Power Ltd (CGPL). Rise in overseas coal prices is impacting the financial viability of the project and the company has sought higher tariff for electricity generated from the plant.
The company said it has decided to take a provision for impairment loss after reviewing the "recoverability of the carrying amount of the project (including assets under construction) considering the fuel cost, exchange rate variation and other operating costs that would impact future cash flows on commencement of commercial operations".
The impairment loss provision for nine months of this fiscal ended December was Rs 850 crore. To support CGPL's cash flows, Tata Power will restructure its holding structure whereby at least 75 per cent of its equity interests in the Indonesian Coal Companies to CGPL, subject to regulatory and other approvals.
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