Haryana denies reports it will challenge CERC order on Adani Power tariff

A Haryana official today denied a Reuters report that the state would challenge the latest order of the Central Electricity Regulatory Commission (CERC), allowing Adani Power "compensatory tariff" for the sale of power from its 4,620-Mw imported coal-based project at Mundra in Gujarat.

"We are yet to examine the CERC's order. We have not taken up any review proposal to the energy secretary so far," the official told Business Standard.

The Reuters report had quoted Haryana power minister Ajay Yadav as saying, "Yes", when asked whether the government was planning legal action. "Because, we have signed an agreement with them (Adani). We will make the payment as per the rate at which we have signed the agreement," Yadav was quoted as saying.

Adani Power had signed a Power Purchase Agreement with Haryana distribution companies for supply at Rs 2.94 per unit in 2008. The company later sought a hike in tariff from CERC ,arguing last year's change in regulation governing coal imports from Indonesia made coal dearer. The power regulator, a quasi-judicial body set up under the Electricity Act, 2003, said the company was entitled to a compensatory tariff until the fuel situation improved.