(T.ET)
Adani Power NSE 7.09 % and Gujarat Urja Vikas Nigam (GUVNL) have reached an out-of-court settlement on a dispute pertaining to termination of power purchase agreement, with the private power firm agreeing to forego compensation claim worth Rs 11,000 crore against the electricity distribution company.
People in the know of the development said the two companies submitted a joint application in the Supreme Court last week seeking disposal of a curative petition filed by GUVNL last year.
Adani Power did not respond to queries sent by ET. A senior official in Gujarat confirmed deliberations between both the parties but declined to offer more comments.
As per the settlement application submitted in the Supreme Court, Adani Power has agreed to relinquish its right to claim compensation. The two companies will work out a new tariff for generation and supply of the 1,000-MW electricity based on domestic coal. The parties have also agreed on the withdrawal of the proceedings pending before the Central Electricity Regulatory Commission, the sources said.
