Congress-led Rajasthan govt pays Rs 3,000 crore dues to Adani Power

Adani Power has received Rs 3,000 crore dues with interest from the Congress-ruled Rajasthan's state-owned power distribution companies as compensation for higher fuel costs.

Holding the three Rajasthan discoms guilty of contempt of its August 31, 2020 order, a Supreme Court bench led by Justice Vineet Saran had on February 25 asked the top brass of the Rajasthan discom to be personally present before it for framing of charges if they failed to pay Adani Power its dues, as directed.

The Supreme Court gave four weeks to the discoms to make a payment of Rs 3,048.63 crore to Adani Power, along with the interest.

Sources said that in the last hearing on March 31, Adani Power had informed the apex court that Rajasthan discoms made a payment of Rs 3,000 crore to the company on March 30.

The officials, who the court said would need to be personally present before it if the latest order is not complied with, are Rajasthan Urja Vikas Nigam Chairman Subodh Agarwal and its MD Bhaskar Atmaram Sawant, Jaipur Vidyut Vitran Nigam MD Navin Arora, Ajmer Vidyut Vitran Nigam MD V.S. Bhati and Jodhpur Vidyut Nigam MD Avinash Singhvi.

Adani Power had signed an agreement with the Rajasthan discoms in March 2008 to set up a 1,200 MW coal-based power project near Kawai in Baran district at a cost of Rs 6,000 crore.

As per the agreement, the state had to facilitate the supply of coal either from the Central government or other sources. Since it failed to do so, the company procured imported coal to supply power. The company claimed higher costs from the Rajasthan Electricity Regulatory Commission (RERC).

The RERC in 2018 ordered in favour of Adani Power and directed payment of compensation by the discoms. The discoms moved the Appellate Tribunal for Electricity (Aptel), which upheld the Commission's order. The matter moved to the Supreme Court as the discoms argued that Adani Power was responsible for the fuel arrangement.