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Hindustan Times
24-05-2025
- Business
- Hindustan Times
Supreme Court directs Rajasthan discoms to pay 186 crore to Adani Power
The Supreme Court has dismissed an appeal filed by Rajasthan's power distribution companies against a ruling of the Appellate Tribunal for Electricity (APTEL) in favour of Adani Power Rajasthan Ltd, asking them to pay Adani Power around ₹186 crore in compensation. A bench of justices M M Sundresh and Rajesh Bindal said on May 23, that it found no merit in the appeals filed by Jaipur Vidyut Vitran Nigam Ltd (JVVNL) and other state discoms. The court upheld APTEL's April 2024 decision that recognised a levy introduced by Coal India Ltd (CIL) as a 'change in law' event under the Power Purchase Agreement (PPA) between Adani Power and the discoms. In December 2017, CIL had issued a notification introducing an Evacuation Facility Charge to cover the expenses related to transporting coal from the mine to the destination. Adani Power, which had entered a PPA to supply 1,200 MW of power to Rajasthan discoms, argued that such charge amounted to a sudden change in law and increased its cost of generating electricity. Since the provisions of the PPA protected it from financial losses due to new or modified laws, rules, or charges imposed by the government, Adani Power claimed it was entitled to receive compensation. After the Rajasthan Electricity Regulatory Commission partially allowed Adani Power's claim, the company as well as the State discoms appealed to APTEL. The Tribunal held that the new charge levied by CIL was a statutory levy imposed by a government entity and thereby qualifying as a change-in-law event and thus, Adani Power should be paid the compensation by the discoms. In its judgement on Friday, the Supreme Court, too, agreed with the Tribunal's ruling and hence, upheld its order directing JVVNL and other discoms to compensate Adani Power. The court noted that the introduction of the EFC disrupted the economic basis of the PPA and activated the principle of restitution. 'The new statutory levy by a government body like CIL qualifies as a change in law, thereby entitling APRL to be restored to the same economic position as if the change had not occurred,' the court said while dismissing the appeals filed by the discoms. The apex court also upheld the tribunal's direction that compensation to Adani Power should be paid from the date of the CIL notification, along with carrying costs at Late Payment Surcharge rates specified in the PPA. The discoms thus, will now have to pay ₹186 crore to Adani Power in dues, the top court said.
Time of India
23-05-2025
- Business
- Time of India
SC upholds Rs 186 cr payout by Rajasthan Discom to Adani Power over ‘change in law'
The Supreme Court on Friday upheld an Appellate Tribunal for Electricity's order that asked Rajasthan discom to pay 'huge sum' of Rs 186 crore to Adani Power Rajasthan, now merged into Adani Power, as benefits due to 'change in law' along with carrying costs at Late Payment Surcharge (LPS) rates of their Power Purchase Agreement (PPA). A Bench led by Justice MM Sundresh said that it did not find any reason to interfere with the tribunal's April 2024 judgment. 'Liability has been fastened upon the appellants (discoms) under the agreement. The contention that the supplementary bill ought to have been raised earlier and, therefore, the payment can only be made thereafter has neither a factual basis nor a legal one,' it said. However, the court noted that Adani had not notified the change in law event immediately after the notification was issued in 2017. The four Rajasthan discoms - Jaipur Vidyut Vitran Nigam, Ajmer Vidyut Vitran Nigam, Jodhpur Vidyut Vitran Nigam and Rajasthan Urja Vikas Nigam (Now Rajasthan Urja Vikas and IT Services) – had alleged that Aptel had allowed a huge margin of profit/windfall gain in favour of Adani, despite the fault being attributable to Adani for causing delay in litigation. In 2009, Adani Power in a competitive bidding process had bagged contract for supply of 1200 MW of power to be generated at Kawai Power Project, Rajasthan, to the discoms to meet the power requirements of the state. The four discoms had entered into a power PPA with Adani Power for supply of 1200 MW aggregate contracted capacity at a levelised tariff of Rs 3.238 per unit. The agreement was also approved by the Rajasthan Electricity Regulatory Commission. In 2017, Coal India , through a notification, imposed a levy of evacuation facility charges at Rs 50 per tonne applicable on every coal dispatch, except dispatch through rapid loading arrangement, with effect from December 20, 2017. Adani had notified Rajasthan Urja Vikas that the Coal India notification constituted a 'change in law' event and also filed a petition before the Commission seeking evacuation facility charges along with carrying costs. While the Commission in 2019 disallowed Adani's petition for the levy of evacuation charges by Coal India, the sectoral tribunal allowed the evacuation facility charges to be paid in favour of Adani Power from the date of notification and also granted relief of carrying cost at LPS rates of PPA to Adani. This was challenged by the Rajasthan discoms before the Supreme Court.
Time of India
23-05-2025
- Business
- Time of India
SC upholds Rs 186 cr payout by Rajasthan Discom to Adani Power over ‘change in law'
The Supreme Court on Friday upheld an Appellate Tribunal for Electricity's order that asked Rajasthan discom to pay 'huge sum' of Rs 186 crore to Adani Power Rajasthan, now merged into Adani Power, as benefits due to 'change in law' along with carrying costs at Late Payment Surcharge (LPS) rates of their Power Purchase Agreement (PPA). A Bench led by Justice MM Sundresh said that it did not find any reason to interfere with the tribunal's April 2024 judgment. 'Liability has been fastened upon the appellants (discoms) under the agreement. The contention that the supplementary bill ought to have been raised earlier and, therefore, the payment can only be made thereafter has neither a factual basis nor a legal one,' it said. However, the court noted that Adani had not notified the change in law event immediately after the notification was issued in 2017. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Conheça o óculos militar que os homens 40+ querem Óculos Max Saiba Mais Undo The four Rajasthan discoms - Jaipur Vidyut Vitran Nigam, Ajmer Vidyut Vitran Nigam, Jodhpur Vidyut Vitran Nigam and Rajasthan Urja Vikas Nigam (Now Rajasthan Urja Vikas and IT Services) – had alleged that Aptel had allowed a huge margin of profit/windfall gain in favour of Adani, despite the fault being attributable to Adani for causing delay in litigation. In 2009, Adani Power in a competitive bidding process had bagged contract for supply of 1200 MW of power to be generated at Kawai Power Project, Rajasthan, to the discoms to meet the power requirements of the state. The four discoms had entered into a power PPA with Adani Power for supply of 1200 MW aggregate contracted capacity at a levelised tariff of Rs 3.238 per unit. The agreement was also approved by the Rajasthan Electricity Regulatory Commission. Live Events In 2017, Coal India , through a notification, imposed a levy of evacuation facility charges at Rs 50 per tonne applicable on every coal dispatch, except dispatch through rapid loading arrangement, with effect from December 20, 2017. Adani had notified Rajasthan Urja Vikas that the Coal India notification constituted a 'change in law' event and also filed a petition before the Commission seeking evacuation facility charges along with carrying costs. While the Commission in 2019 disallowed Adani's petition for the levy of evacuation charges by Coal India, the sectoral tribunal allowed the evacuation facility charges to be paid in favour of Adani Power from the date of notification and also granted relief of carrying cost at LPS rates of PPA to Adani. This was challenged by the Rajasthan discoms before the Supreme Court.
