Rajasthan discoms tells SC over Rs 5,995 crore has been paid out to Adani Power. Adani seeks an additional sum of Rs 1,300 crore. The discoms argued the additional sum cannot be claimed, given that coal for power production was available domestically since November 2021 and no import was needed
Adani Power has managed to get a favourable ruling in case against Rajasthan discoms, and is now set to get Rs 4,200 crore as compensatory tariff
The power generator posted a loss of Rs 325.3 crore in December quarter from a profit of Rs 104 crore in the same quarter of previous fiscal; brokerages worry on the company's debt situation, likely unfavourable result in an SC litigation.
Contrary to the market's perception of an APTEL order that is said to have struck down compensatory tariff for Tata Power and Adani Power, Anil Sardana, MD of the former says the market has got it wrong and termed the order a "vindication" for the company.
Kotak Institutional Equities Research's current estimates for Tata Power and Adani Power continue to build compensatory tariffs for both, as the same are economically affordable, though it sees increased risks of the apex court taking a high principled stance on compensatory tariffs.
Aptel in July had allowed Tata Power and Adani Power to recover dues from procurers on account of unforeseen rise in import cost of fuel
The Haryana Discom has moved the Supreme Court for a stay on the Appelate Tribunal for Electricity's order on compensatory tariff.
"The board has approved raising funds upto Rs 2,000 crore by way of a rights issue of equity shares of face value of Rs 1 each subject to all applicable statutory and regulatory approvals," it said in a statement to the BSE.
The Deepak Parekh panel has already recommended a compensatory tariff of 45-55 paise for Tata Power's 4,000 MW Mundra plant and a tariff increase to the tune of 60 paise for Adani Power's 4,620 MW Mundra plant.
Power companies which seek hike in tariffs due to global factors should also reduce rates when international coal prices soften, an expert has said.