Tata Power (BSE: 500400) has decided to refit one of its gas plants in Mumbai to be powered by coal, as the company’s executive director said they wished to avoid rising gas costs.

Executive Director of Tata Power, Sankaranarayanan Padmanabhan said the move, at the 500 MW Trombay power station will enable prices to be kept low for customers

Adding dual-fuel firing technology will cost $21.5m which includes pollution control equipment to keep its emissions at the current level.

Executive Director of Tata Power, Sankaranarayanan Padmanabhan said: “We see costs of oil and gas rising and thus have proposed modernisation which will help reduce costs and ensure higher utilisation of capacity.”

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