Adani Power's Claims Against State Discoms Upheld By Supreme Court
The Supreme Court dismissed appeals against the orders of the Appellate Tribunal for Electricity filed by discoms.
Adani Power Ltd. said the Supreme Court has upheld the claims of the company and its erstwhile units against state distribution companies.
The court dismissed appeals of Maharashtra State Electricity Distribution Company Ltd. against the decision of Appellate Tribunal for Electricity to grant compensation to Adani Power, according to an exchange filing.
The order allows compensatory tariff for Adani Power under the 'change in law' clause in its agreement with the Maharashtra state discom. MSEDCL had challenged Adani Power's claim to recover the cost of alternative coal after the change in coal distribution policy reduced its supply of domestic fuel.
Appeals of Rajasthan Distribution Companies against two orders of the tribunal were also dismissed by the apex court. The Rajasthan unit of Adani Power had moved the Rajasthan Electricity Regulatory Commission claiming loss incurred from having to import coal, which was supposed to be provided by the state government, as part of a memorandum of understanding from 2008.
The top court also dismissed appeals by Haryana discoms against three orders of the appellate tribunal. It also partially set aside another order and directed the Central Electricity Regulatory Commission to calculate the benefits that would be accruable to any of the parties, within a period of six months.
Shares of Adani Power were trading 1.02% higher at Rs 197.8 apiece, compared to a 0.18% decline in Nifty 50.
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