India regulator allows Tata Power to raise tariff at Mundra plant

MUMBAI, April 15 Mon Apr 15, 2013 6:00pm IST

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MUMBAI, April 15 (Reuters) - India's central electricity regulator has allowed Tata Power Co Ltd to raise electricity tariffs on a temporary basis at its Mundra power plant on account of rising cost of imported coal, the power utility said on Monday.

The ruling follows a similar order by the regulator earlier this month allowing higher tariffs at Adani Power Ltd's neighbouring power plant in the western state of Gujarat.

India's power sector has struggled with domestic coal shortages and has become increasingly reliant on costlier imports to meet the country's rapidly growing energy needs. (Reporting by Prashant Mehra; Editing by Anand Basu)