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SC dismisses review petition by Rajasthan discoms on Adani Power compensatory tariff issue

Adani Power had to resort to imported coal because of the non-supply of domestic coal. The company had sought compensation for the time period between 2010 and 2018

March 18, 2021 / 01:59 PM IST
Source: AP

Source: AP

The Supreme Court has dismissed a review petition filed by power distribution companies (discoms) of Rajasthan on the compensatory tariff issue with Adani Power Rajasthan.

In September 2020, the apex court had ordered three Rajasthan power distribution companies to pay a compensatory tariff to Adani Power Rajasthan since 2013 to recover the higher cost of imported coal. The SC judgement was in line with an order passed by the Appellate Tribunal of Electricity (APTEL) granting compensatory tariff to Adani Power Rajasthan for its 1,200-megawatt (MW) Kawai thermal power plant.

"We would like to inform that the Hon'ble Supreme Court ("SC") has dismissed the review petitions filed by Rajasthan Discoms in the matter of the SC Judgment dated August 31, 2020, pertaining to recovery of compensatory tariffs by Adani Power Rajasthan Limited, a wholly-owned subsidiary of the Company," Adani Power said in a filing to the Bombay Stock Exchange on March 18.

As per the case, Adani Power had to resort to imported coal because of the non-supply of domestic coal. The company had sought compensation for the time period between 2010 and 2018 for not receiving domestic coal linkage to Kawai plant. From 2019 onwards, it got a supply of domestic coal under the Shakti scheme.

It was in 2008 that the government of Rajasthan and Adani Group signed a pact to set up 1,200 MW coal-based power project in Kawai at an expense of Rs 5,000 crore.

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The state government had assured domestic 100 per cent coal linkage to the company as part of the deal. In 2010, a power purchase agreement (PPA) was signed between Adani Power and the three state discoms. However, the unit did not feature in the Centre's list for supply of coal in 2013. Following this, the company first made a claim before the state electricity regulatory commission for a compensatory tariff, as it had to depend on coal imported from Indonesia.

The Rajasthan Electricity Regulatory Commission (RERC) ruled in favour of the company in 2018 allowing a compensatory tariff and later the case was dragged to APTEL and the Apex Court.
Shine Jacob
first published: Mar 18, 2021 01:11 pm
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