New Delhi, March 18, 2021: Adani Power share price touched the 52-week high of Rs 91.50, rising 5 percent intraday on March 18 after the Supreme Court (SC) dismissed a review petition filed by power distribution companies (discoms) of Rajasthan against paying compensatory tariff to the company.
In September 2020, the apex court ordered three Rajasthan power distribution companies to pay a compensatory tariff to Adani Power Rajasthan since 2013 to recover the higher cost of imported coal.
“We would like to inform that the Hon’ble Supreme Court (“SC”) has dismissed the review petitions filed by Rajasthan Discoms in the matter of the SC Judgment dated August 31, 2020, pertaining to recovery of compensatory tariffs by Adani Power Rajasthan Limited, a wholly-owned subsidiary of the Company,” Adani Power said in a filing to the Bombay Stock Exchange on March 18.
The September 2020 judgment was in line with an order passed by the Appellate Tribunal of Electricity (APTEL) granting compensatory tariff to Adani Power Rajasthan for its 1,200-megawatt (MW) Kawai thermal power plant according to the reports published in moneycontrol.com.
Adani Power had to resort to imported coal because of the non-supply of domestic coal. The company sought compensation for the time period between 2010 and 2018 for not receiving domestic coal linkage to Kawai plant. From 2019 on, it got a supply of domestic coal under the Shakti scheme.