SC upholds APtel order granting compensatory tariff to Adani Power plant

The Supreme Court on Monday upheld the order passed by Appellate Tribunal of Electricity (APTEL) granting compensatory tariff to Adani Power Rajasthan Limited for its 1,200 MW Kawai thermal power plant, to be paid by power distribution companies (discoms) of Rajasthan.

In a notice to the exchanges, Adani Power said, “Hon'ble Supreme Court vide its judgment dated 31st August 2020 partially upheld the appeal filed by Rajasthan discoms. The order allowed Adani Power Rajasthan Limited a wholly-owned subsidiary of the Company to recover compensatory tariff from discoms as per APTEL order of 14th September 2019.”

The company said the interest rate applicable on delayed payments by discoms at SBI Prime Lending Rate with a cap of 9 per cent per annum will be compounded annually instead of monthly.

The case pertains to the cost incurred by Adani Power Rajasthan on sourcing costlier imported coal due to lack of domestic coal supply. The company requested compensation under 'change in law'. Between 2010, when power purchase agreement was signed with Rajasthan discoms and 2018, the Kawai unit did not receive any domestic coal linkage. In 2019, the unit won coal supply under the SHAKTI coal supply scheme.