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Informist, Thursday, May 21, 2026

 

NEW DELHI – The Supreme Court has upheld the Punjab State Electricity Regulatory Commission's order to impose a penalty of INR 1.27 billion and applicable late payment surcharge against Talwandi Sabo Power, a subsidiary of Vedanta Ltd., for misdeclaration of available power capacity. This penalty and late payment surcharge will be payable to Punjab State Power Corp. The finding of misdeclaration against Talwandi Sabo regarding failure to demonstrate the declared capacity stood established unequivocally, said the apex court.

 

In the present case, one of the plants of Talwandi Sabo Power was shut down and the same was communicated to Punjab State Load Despatch Centre, noted the court. However, notice was issued by the dispatch centre to Vedanta's arm to demonstrate the declared capability as emanating from the two operational units, which Talwandi Sabo Power was unable to demonstrate, said the court.

 

Talwandi Sabo Power had attempted to raise a contention of "force majeure" which was hastily abandoned after the court's query to substantiate it, for which contention was also not raised before the Punjab State Electricity Regulatory Commission or the Appellate Tribunal for Electricity. The demonstration of declared capability invites strict liability if the declared capability is not achieved within the time-blocks, said the court.

 

The case has its genesis from Punjab State Electricity Regulatory Commission finding that Talwandi Sabo Power had misdeclared its available power capacity for five days from 2015 to 2017. Talwandi Sabo Power said that its plant had generated power on multiple time blocks as per the declared capacity and this demonstrates that the company had the necessary coal stock and was technically capable of generating power up to its declared capacity, putting to peril any allegation of misdeclaration.

 

Thursday, the shares of Vedanta Ltd. ended 1.2% lower at INR 329.75 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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