Adani Power to get Rs 4200 crore compensatory tariff from 3 Rajasthan discoms, rules Supreme Court; shares rally 12%

The Supreme Court ruled in favour of Adani Power on Thursday saying three Rajasthan discoms were in contempt of the top court’s 2020 order directing payment of compensatory tariff to the Adani group company.

The discoms had not paid the dues despite their review petition having been dismissed earlier this year, the court said. The court has directed discoms to pay Adani Power Rs 4200 crore compensatory tariff within four weeks.

The power company had moved a contempt plea in the Supreme Court seeking recovery of the compensatory tariff of Rs 6738 crore from the discoms. The discoms have so far paid Rs 2426 crore.

Adani Power alleged that the Rajasthan discoms had failed to comply with the apex court’s judgment directing compensatory tariff for the power supplied by the company from 2013.

Earlier in 2020, the top court had upheld the order of the Appellate Tribunal for Electricity (APTEL) that allowed compensatory tariff to Adani Power's 1200MW Kawai plant. The Adani group firm has cited lack of domestic coal linkage, import of Indonesian Coal to bat for higher compensatory tariff.

Adani Power shares rallied following the court order. At 11:25 am, the stock was up 11.93 percent at Rs 124.30 on the Bombay Stock Exchange (BSE).