Vedanta’s subsidiary, Talwandi Sabo Power (TSPL), has been held liable by the Supreme Court and ordered to pay approximately Rs 127 crore, plus the applicable late payment surcharge, to Punjab State Power Corporation (PSPCL).
In its order, the apex court upheld the penalty on TSPL for misdeclaration of availability for January 2017 in terms of the Grid Code, along with the applicable Late Payment Surcharge.
In a regulatory disclosure, Vedanta said the Supreme Court has set aside the judgment of the Appellate Tribunal for Electricity (APTEL) and restored the order of the Punjab State Electricity Regulatory Commission (PSERC).
What’s the case about?
The case relates to Talwandi Sabo Power’s alleged misdeclaration of availability for January 2017 under the grid code provisions.
The Supreme Court allowed the appeals filed by the Punjab State Power Corporation and the Punjab State Load Despatch Centre (PSLDC). The court also upheld the penalty imposed on TSPL, along with the applicable late-payment surcharge.
Vedanta added that the disclosure was made on behalf of Talwandi Sabo Power (TSPL), as the company’s equity shares are currently in the process of being listed on BSE and NSE following the demerger of the Merchant Power Undertaking from Vedanta to TSPL.
The other four Vedanta entities after the demerger are- Vedanta Limited, housing its base metals business. Vedanta Aluminum,, Vedanta Steel and Iron, and Malco Energy.
Talwandi Sabo Power operations
Talwandi Sabo Power is a 1,980 MW super-critical coal-based thermal power plant located at Banawala in Mansa district, Punjab.
TSPL supplies 100% of its generated power to the Punjab State Power Corporation, meeting 35% of the state’s energy requirements through dependable, large-scale electricity generation.
Talwandi Sabo Power was established by the Punjab State Electricity Board as a special-purpose vehicle to develop a large-scale thermal power project in the state. The project was awarded to Vedanta (erstwhile Sterlite Energy) under a Build-Own-Operate model.