No possibility of power tariff hike after GST rollout: Goyal

NEW DELHI: Power Minister Piyush Goyal sees no possibility of increase in power tariff across the country post GST, saying industry associations have not sought its deferment.

The Goods and Services Tax (GST), which is set for July 1 kick-off, will usher in a new system under which there will be one tax on commodities and services across the country.

"I don't see any possibility of spike in power tariff due to implementation of GST. There could be one or two paise variation (per unit of electricity)," Goyal told reporters after his meeting with the industry covering power, coal, mines and renewable energy sectors.

Goyal added that there are a couple of issues raised, which will be put forth at the next meeting of the GST Council. One of them pertains to the issue of tax on product made up of fly ash, a by-product at coalbased thermal power plants. The industry association, Goyal said, has not sought postponement of the GST implementation and all are content with the new framework. The power ministry will make an analysis on the basis of tax collection before and after implementation of GST to find out if the new tax rates are "inordinately" high or not. NEW DELHI: Tata Power has offered to sell 51 per cent stake in its 4,000 MW Mundra power project for Re 1 to states like Gujarat which buy electricity from it so as to rescue the debtladen, loss-making business.

Coastal Gujarat Power Ltd (CGPL), the Tata Power unit which operates the Mundra project, wrote to Gujarat Urja Vikas Nigam Ltd earlier this month offering to retain only 49 per cent stake and operate the project as a contractor provided the procurers buy all the power at higher tariffs.

In the letter, copies of which were marked to Nripendra Misra, Principal Secretary to Prime Minister, and Union Power Secretary, CGPL CEO Krishna Kumar Sharma said Mundra has accumulated losses of Rs 6,457 crore against a paid up equity of Rs 6,083 crore. Besides, CGPL has outstanding loan of Rs 10,159 crore and lenders have stopped further disbursal due to non-viability of the project, he wrote.