GMR Group today announced revision of power tariff for GMR Kamalanga Energy, an SPV of GMR Energy following an order passed by Central Electricity Regulatory Commission (CERC).

GMR Kamalanga had submitted an application to CERC for determination of the tariff under the PPA.

Pending order of CERC, GMR Kamalanga was being reimbursed at Rs 2.75 / unit of total tariff. Consequent to the CERC order GMR Kamlanga will be entitled for a price of FY 14 which shall be approximately Rs 3.97/Unit and Rs 3.4/Unit thereafter.

GBS Raju, business chairman, Energy, said, ''This is another reaffirmation of the government's and Regulator's resolve to solve the problems of the Power sector. We are pleased to note that CERC has passed this tariff order which will go a long way improving the profitability and liquidity of the Group.''

This long pending order would entitle GMR Group to collect all the arrears of power supply from GMR Kamalanga Energyto GRIDCO for power supplied till September 2015. Going forward the order will help improve company's EBITDA by Rs 1.20 billion.

Around 85% of plant's power generation capacity is tied up through long term power purchase agreement (PPA) which Includes PPA with GRDICO, Orissa for off taking 25% of the power generated from the power station.

Shares of the company gained Rs 0.93, or 6.99%, to trade at Rs 14.24. The total volume of shares traded was 6,727,128 at the BSE (3.13 p.m., Wednesday).