(FE)
The Supreme Court on Tuesday validated Adani Power’s claim for compensatory tariff from state-owned discom Gujarat Urja Vikas Nigam (GUVNL) for additional costs incurred in supplying power from its imported coal-based Mundra plant, after the Gujarat Mineral Development Corporation (GMDC) reneged on its promise to supply local coal from Mogra-II coal block in Chhattisgarh.
The court asked the central power regulator to issue the relevant tariff order within three months after the power major approached it with a plea. Analysts estimate the compensation could be in the range of Rs 4,500-6,000 crore (including carrying costs) for the supplies in the 2012-2018 period.
This will be the second time Adani Power’s once-troubled 4,620-MW Mundra unit is benefiting from the provision of compensatory tariff. It was the first company to benefit from the Supreme Court’s October 29, 2018, ruling that extended the lifeline to the three troubled imported-coal-based power plants in Gujarat (Tata Power’s Mundra unit and Essar’s Salaya plant are the other two) by allowing the CERC to amend their PPAs to facilitate pass-through of future fuel price escalation, subject to a ceiling.
