Lawstreet Journal

SC holds Rajasthan Discom responsible to pay Compensatory Tariff to APRL (Adani Power Rajasthan Ltd) [READ ORDER]

Lawstreet Journal 2 Sep 2020 9:10pm

Image courtesy: Lawstreet Journal Judiciary SC holds Rajasthan Discom responsible to pay Compensatory Tariff to APRL (Adani Power Rajasthan Ltd) [READ ORDER]

On 31 August 2020, the Supreme Court passed an order in favor of APRL (Adani Power Rajasthan Ltd) and upheld the order passed by the Rajasthan Electricity Regulatory Commission (RERC) and the Appellate Tribunal for Electricity (APTEL), and stated explicitly that APRL was entitled to the compensatory tariff from the Rajasthan Discom in accordance to the Power Purchase Agreements (PPAs) framed by the APRL. The Judgement comes in a seven-year-long dispute between the Rajasthan Discom and APRL, wherein in Adani Group stood a chance of claiming Rs 5000 crores from the appellants. 

The Bench comprised of Justice Arun Mishra, Vineet Saran, and M.R Shah and stated- “considering the facts of the case and keeping in view the orders of RERC and APTEL which are contemporaneous to each other and in favor of respondent with regard to “change in law” clause, with which we also support.” 

Background of the Case 

To have a better overview of the dispute, we shall delve into the background of both the parties when the agreement was signed between the Rajasthan government and Adani Enterprises Limited (AEL) in period 2006 to 2009 where they got the contract to develop a coal mine and a thermal power plant which would increase the supply of electricity to its consumers in Rajasthan. 

In October 2006, the Rajasthan Rajya Vidyut Utpadam Nigam Ltd (RRVUNL), state government power generation company communicated to Adani Enterprises Ltd that they were chosen to be the Joint Venture (JV) partner of RRVUNL. The company stated that its business activities… Continue Reading...

Tagged: Adani  
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