In a big relief to Adani Group and Tata Power, the Supreme Court on Monday allowed state discoms and power producers move Central Electricity Regulatory Commission to seek amendment in purchasing power agreement (PPA) as per the recommendations made by a high-powered committee. The apex court has given two weeks time to the stakeholders.
The three-member higher-power panel formed by the Gujarat government recommended the option of passing the burden of high fuel price to consumers, extention of the PPA and haircut to lenders. According to news agency PTI, bankers are facing a stress of Rs 18,000 crore due to power plants set up by Adani, Tata Power and Essar Power in Gujarat.
The 4,000 MW Coastal Gujarat Power Limited of Tata Power, 4,620 MW at Mundra, Adani Power Mundra Limited and 1,200 MW Essar Power Gujarat Power Limited at Salaya were identified as stressed power projects.
The panel was formed under former Supreme Court Justice R K Agrawal, former RBI Deputy Governor S S Mundra and former Chairman of Central Electricity Regulatory Commission Pramod Deo, to explore the legal and commercial options of the stressed power projects.
The Supreme Court had earlier ruled that the companies cannot raise tariff from what was negotiated in the PPA while setting up these projects in Gujarat. The companies cited ‘act of god’ to raise power tariffs as they suffered due to higher coal prices after Indonesia imposed regulation.