SC upholds tribunal order asking discoms to pay INR 1.86 bln to Adani Power
This story was originally published at 18:06 IST on 23 May 2025
Register to read our real-time news.Informist, Friday, May 23, 2025
NEW DELHI – The Supreme Court on Friday upheld an Appellate Tribunal for Electricity order that asked Rajasthan discom companies to pay INR 1.86 billion to Adani Power Rajasthan Ltd., which was merged into Adani Power Ltd., in relation to a power purchasing agreement between the parties.
The top court said that it did not find any reason to interfere with the tribunal's judgment. "Liability has been fastened upon the appellants under the agreement," said the top court. The contention that the supplementary bill ought to have been raised earlier and, therefore, the payment can only be made thereafter has neither a factual basis nor a legal one, said the bench of Justices M.M. Sundresh and Rajesh Bindal.
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 INR 3.238 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 INR 50 per tonne 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.
On Friday, shares of Adani Power closed 0.1% lower at INR 553.20 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
