Supreme Court says Adani Power eligible for carrying cost

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Published: February 26, 2019 5:17:53 AM

Supreme court ruled that the generating company is entitled to adjustment in its monthly tariff payment

A Bench led by justice RF Nariman while dismissed the appeals by Haryana discoms

Holding that Adani Power is eligible for carrying cost, the Supreme court ruled that the generating company is entitled to adjustment in its monthly tariff payment from the date on which the exemption notifications became effective.

A Bench led by justice RF Nariman while dismissing the appeals by Haryana discoms — Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam — held that Article 13.4.1 of the PPA “makes it clear that adjustment in monthly tariff payment on account of change in law shall be effected from the date of the change in law, in case the change in law happens to be by way of adoption, promulgation, amendment, re-enactment or repeal of the law or change in law”.

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It further said that if the change in law is on account of a change in interpretation of law by a judgment of a court or tribunal or governmental instrumentality, then the monthly tariff payment shall be effected from the date of the said order/judgment of the competent authority/tribunal or the governmental instrumentality and the case would fall under sub-clause (ii) of clause 4.1.

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