Adani Power and Gujarat Urja Vikas Nigam settle compensation dispute outside the apex court

The Supreme Court of India. (File image)

The Supreme Court today disposed of a curative petition on a tariff dispute issue between Gujarat Urja Vikas Nigam Ltd (GUVNL) and Adani Power Mundra Ltd as an out-of-court settlement has been reached.

The top court was hearing the petition filed by GUVNL against the 2019 ruling of the Supreme Court in favour of Adani Power. The court had in 2019 held as valid Adani Power’s termination of its power purchase agreement (PPA) with GUVNL and had directed the electricity commission to compute compensation to be paid to Adani Power by GUVNL.

The court has now been informed that Adani Power will resume energy supply to Gujarat, relinquishing claim for Rs 10,000 crore compensation.

The amount and specifics of the out-of-court settlement were not disclosed.

Adani Power had entered into a PPA with GUVNL in 2007 which was later terminated allegedly on account of Gujarat not supplying coal to Adani Power as per the revised agreements.

On being challenged, the termination was held to be illegal by forums but the Supreme Court ruled in favour of Adani Power in 2019, prompting the curative petition by GUVNL.