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.”
ALSO READ: Adani ranks as the largest solar power generation owner globally: Mercom
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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.