Adani Power falls for 2nd day; tanks 9% on SC verdict

New Delhi, Apr 12 (PTI) Shares of Adani Power slumped 9per cent today after the Supreme Court said that powerdistribution firms cannot charge "compensatory tariff" fromconsumers and set aside the appe

New Delhi, Apr 12 (PTI) Shares of Adani Power slumped 9

per cent today after the Supreme Court said that power

distribution firms cannot charge “compensatory tariff” from

consumers and set aside the appellate tribunal’s judgement in

this regard.

Extending last session’s sharp losses, shares of Adani

Power tumbled 9.01 per cent to close at Rs 33.85 on BSE.

During the day, it dived 11.55 per cent to Rs 32.90.

Shares of Tata Power fell 1.75 per cent during the day

before ending marginally higher by 0.06 per cent at Rs 85.45.

The two stocks had lost up to 16 per cent in the previous

session also.

Selling was also seen in other Adani group stocks, with

Adani Transmission plunging 9.77 per cent, Adani Enterprises

(5.42 per cent) and Adani Ports and Special Economic Zone

(2.06 per cent).

Tata Power’s wholly-owned subsidiary Coastal Gujarat

Power Ltd and Adani Power had originally moved the Central

Electricity Regulatory Commission (CERC) seeking higher tariff

on the grounds that their input costs had gone up due to rupee

devaluation and higher costs of coal imported from Indonesia,

owing to a regulation passed by the Southeast Asian nation.

The apex court did not agree with the contentions of

these firms which referred to the findings of the Appellate

Tribunal for Electricity that rise in coal price consequent to

change in the Indonesian law was a factor that entitled them

to claim compensatory tariff.

While setting aside the appellate tribunal’s judgement as

well as the CERC’s order, a bench of Justices P C Ghose and R

F Nariman said that an unexpected rise in coal price would not

absolve the firms from adhering to the contract as they had

knowingly taken the risk while submitting their bids.

This is published unedited from the PTI feed.