NTPC Ltd, India’s largest thermal power producer, reported a nearly 17 per cent drop in net profit at Rs. 2,071.63 crore for the second quarter ended September 2014, pulled down by changes in tariff regulations.
The company had posted a net profit of Rs. 2,492.90 crore for the corresponding period a year ago, it said in a filing to the stock exchanges.
The decline in profit after tax was mainly on account of changes in Tariff Regulations, 2014, the company said in an official statement.
In July, electricity regulator Central Electricity Regulatory Commission (CERC) rejected NTPC’s petition seeking changes in the tariff norms from 2014-19.
NTPC had said that its generation incentives should be linked to the actual power produced instead of the supply.
In its order dated June 30, the electricity regulator said the risks associated with the business of electricity generation had been taken care of in the 2014 tariff regulations.
The state-run firm’s total income from operations increased to Rs. 16,736.63 crore from Rs. 16,448.90 crore in the same period last fiscal year.
Fuel cost on year-on-year basis rose to Rs. 11,439.33 crore from Rs. 10,139.25 crore whereas the company’s other income fell to Rs. 530.69 crore from Rs. 627.19 crore in the corresponding period.
In September, NTPC signed an initial agreement with the Andhra Pradesh government to develop 1,000 MW solar power projects at suitable sites in a phased manner. The projects will be implemented on Build-Own-Operate basis in the state.
For the second quarter of fiscal year 2014-15, gross generation was 55.421 billion units (BUs) as against 54.519 BUs in corresponding quarter of the previous year.
During the first six months of the current fiscal year (April-September), the company’s gross power generation grew to 118.554 BUs from 111.524 BUs for the corresponding period in previous year.