Updates

• Security Code: 532460
• Company: PONNIERODE

Ponni Sugars (Erode) Ltd has informed BSE that the Company has completed the installation of its Cogeneration plant. It now awaits shortly the 'Consent to Operate' from the Tamil Nadu Pollution Control Board. It targets to commission the Cogen plant during August 2012.

While so, the Tamil Nadu Electricity Regulation Commission (TNERC) by its Order dt. July 31, 2012 has fixed comprehensive tariff for bagasse based Cogeneration plants. As per this order, power tariff has been lowered to Rs. 3.76 per unit for the first year as against the tariff rate of Rs. 4.47 per unit fixed under the earlier Order No.3 of 2009. The new order would apply in respect of Cogen plants commissioned on or after August 01, 2012.

Despite all-round increase in the capital cost and operating expenses of Cogen Projects that would normally warrant and justify commensurate increase in regulatory tariff, the Company is now faced with lower tariff fixation that will have
considerable adverse impact on its Cogen Project. The Company would study in detail the order of TNERC and decide upon moving the appropriate Appellate forum in due course.