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Informist, Monday, Sep 9, 2024

 

NEW DELHI – The Supreme Court today issued a notice to Adani Power Ltd on a plea by Rajasthan power distribution companies against an order passed by the Appellate Tribunal for Electricity asking the latter to pay 1.86 bln rupees in relation to a power purchasing agreement between the parties.

 

In 2009, a competitive bidding process was initiated by Rajasthan power distribution companies, as per guidelines issued by the Ministry of Power for meeting the state's power requirements. Adani Power submitted its bid in response to the request for proposal to offer 1,200 MW of power to be generated at Kawai Power Project, Rajasthan, and supply power to the distribution companies.

 

Jaipur Vidyut Vitran Nigam Ltd, Ajmer Vidyut Vitran Nigam Ltd, Jodhpur Vidyut Vitran Nigam Ltd, and Rajasthan Urja Vikas and IT Services entered into a power purchase agreement with Adani Power for supply of 1,200 MW aggregate contracted capacity at a levelised tariff of 3.238 rupees per unit. The agreement was also approved by the Rajasthan Electricity Regulatory Commission.

 

In 2017, Coal India Ltd, through a notification, imposed a levy of evacuation facility charges at 50 rupees per tn applicable on every coal dispatch, except dispatch through rapid loading arrangement, with effect from Dec 20, 2017. Thereafter, Coal India notified Rajasthan Urja Vikas that its notification constitutes a "change in law" event. In 2018, Adani Power filed a petition before the electricity commission seeking evacuation facility charges along with carrying costs.

 

Thereafter, in 2019, the commission passed an order and disallowed the levy of evacuation charges by Coal India. Consequently, Adani Power moved the tribunal against the commission's order. The tribunal condoned the delay of 332 days by Adani Power to file the appeal and 236 days in refiling the appeal. In April, the tribunal allowed the evacuation facility charges to be paid in favour of Adani Power from the date of notification and also granted relief of carrying cost at late payment surcharge rates of agreement to Adani Power. Challenging this, the Rajasthan power distribution companies moved the Supreme Court.

 

Today, shares of Adani Power Ltd ended 0.1% higher at 635.20 rupees on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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