How govt-RBI battle on Section 7 plays out could decide fate of power NPAs

While the legal battle over private plants in Gujarat could take up to next April, for the broader industry, the more important cues are the next SC hearing and how the Section 7 battle plays out

The Supreme Court may have allowed India’s central electricity regulator to consider reopening the power supply contracts of the loss-making generating stations of Tata, Adani and Essar in Gujarat, but it does not mean that the matter of compensatory tariff for these plants has been settled. Far from it.

Consumer forums can still continue their legal battle all the way up to the apex court to challenge grant of compensatory tariff for these plants, which would entail additional burden of Rs 1.29 lakh crore on consumers over a 30-year period.

“We make it clear that our judgment will not stand in the