Adani Power, in a stock exchange filing, has said that the Supreme Court has partially upheld the appeal filed by power distribution utilities of Rajasthan, in connection with Adani Power Rajasthan Ltd (APRL), a wholly-owned subsidiary of Adani Power.
While the Supreme Court judgement dated August 31, 2020, has allowed APRL to recover compensatory tariff from discoms as per the Appellate Tribunal for Electricity (APTEL) order of September 14, 2019, the order limits the interest rate applicable on delayed payments by discoms at SBI Prime Lending Rate with a cap of 9 per cent per annum. Further the order says that the interest will be compounded annually instead of monthly.
It may be mentioned that in its order dated September 14, 2019, APTEL allowed the claim of compensation for non-availability/shortage in linkage coal supply from Coal India Ltd, and use of alternate coal by APRL in respect of the power purchase agreement of 1,200 mw signed by APRL with discoms of Rajasthan.
APTEL allowed compensation for domestic coal shortfall arising from change in law pertaining to the New Coal Distribution Policy, 2007 (NCDP), and the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) policy of the Government of India.
APTEL also granted carrying cost pertaining to the above. APTEL further directed the discoms to pay to APRL:
- the balance amount of change in law compensation pertaining to NCDP along with carrying cost within two months from the date of judgement; and
- the claim pertaining to the period after the grant of coal linkage under the SHAKTI Policy, along with carrying cost within three months of submission of claim along with requisite documents by APRL.
Featured photograph shows the 1,320-mw Kawai supercritical thermal power plant of Adani Power Rajasthan Ltd.