New Delhi : The Supreme Court on Tuesday disallowed compensatory tariff to Tata Power Ltd and Adani Power Ltd for their power plants at Mundra in Gujarat, setting aside the Central Electricity Regulatory Commission and Appellate Tribunal for Electricity’s orders.
This comes as a major blow to both companies, which suffered losses due to a change in law in Indonesia, which led to sharp increase in the cost of imported coal, reports Cogencis.
Tata Power operates 4,000-MW Mundra ultra mega power plant through its subsidiary Coastal Gujarat Power Ltd. Adani Power’s Mundra power plant has a capacity of 4,620 MW.Power distribution companies in Rajasthan, Maharashtra, and Punjab, along with two non-governmental organisations had moved the apex court after losing the case in the Appellate Tribunal for Electricity as well as in the Central Electricity Regulatory Commission.In the last order by the central electricity regulator in December, the companies had been allowed to hike tariff provided the Supreme Court did not state otherwise.
