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Reliance Infrastructure subsidiaries to recover Rs 21,413 crore regulatory assets over four years as per Supreme Court ruling
By Aditya Bhagchandani Published on August 8, 2025, 10:27 IST
Reliance Infrastructure Limited announced that its material subsidiaries, BSES Yamuna Power Limited and BSES Rajdhani Power Limited, have secured the right to recover approximately Rs 21,413 crore worth of regulatory assets over the next four years. This follows a Supreme Court judgement pronounced on August 6, 2025, which set clear guidelines for the recovery process.
The judgement, stemming from writ petitions and civil appeals filed in 2014, addressed issues including non-cost reflective tariffs, unlawful creation of regulatory assets, and delays in liquidation. The Court outlined ten principles for regulatory asset management and issued nine directives to Electricity Regulatory Commissions (ERCs) and the Appellate Tribunal for Electricity (APTEL).
Among the key directives, the Court mandated that regulatory assets should not exceed a reasonable percentage of the Aggregate Revenue Requirement (ARR) and must be liquidated within three years if newly created, and within four years for existing assets starting April 1, 2024. ERCs are required to provide a clear liquidation roadmap and conduct strict audits, while APTEL will oversee compliance.
Reliance Infrastructure, a major player in power distribution and infrastructure development, said the DERC-approved regulatory assets for its subsidiaries will now be liquidated within the stipulated timeline.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
