SC upholds tribunal order in Adani case, nixes discoms' plea
Jaipur: The Supreme Court on Friday dismissed an appeal filed by Rajasthan's power distribution companies against an order of the Appellate Tribunal for Electricity (APTEL) that ruled in favour of Adani Power Rajasthan Ltd (APRL) for levying a charge of Rs 50 per tonne of coal.
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The case is related to a Dec 2017 notification issued by Coal India Ltd, imposing a charge of Rs 50 per tonne as evacuation facility charges (EFC).
Adani Power, which signed a PPA with the state's discoms in 2010 for the supply of 1200 MW of power, claimed that the levy constituted a "change in law" under Article 10 of the PPA. A bench comprising Justices M M Sundresh and Rajesh Bindal held that there was no merit in the plea of Jaipur Vidyut Vitran Nigam Ltd (JVVNL) and Rajasthan discoms.
It upheld the APTEL's finding that a levy introduced by Coal India Ltd constituted a "change in law" entitling Adani to compensation under its Power Purchase Agreement (PPA).
After the CIL notification, Adani Power notified the discoms of the change in law event, seeking compensation. When state discoms failed to respond, Adani approached the Rajasthan Electricity Regulatory Commission (RERC), which partially allowed its claims.
Both parties subsequently approached APTEL, which in April 2024 ruled in favour of Adani Power.
In the order, Justice Sundresh said the statutory levy by a govt entity like CIL qualified as a change in law, triggering the restitution principle enshrined in the PPA. The verdict said that compensation must be provided to restore the power generator to the same economic position it would have occupied but for the change in law. "We find no merit in this appeal. The appeal stands dismissed accordingly," it held.
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