Breaking News Supreme Court issues notice in Gujarat PSU plea against...

Supreme Court issues notice in Gujarat PSU plea against Adani Power’s termination of PPA

-

New Delhi Sept 17 (ILNS) The Supreme Court on Thursday issued notice in a curative petition of the Gujarat Urja Vikas Ltd (GUVL) against the July 2019 judgment that upheld the termination of the Power Purchase Agreement by Adani Power signed with GUVL as it could not get coal supply on time from the Naini block of Gujarat Mineral Development Corporation (GMDC).

The 5-judge bench of Chief Justice of India N.V. Ramana , Justice U.U. Lalit, Justice A.M. Khanwilkar, Justice B.R. Gavai and Justice Surya Kant observed that there are substantial questions of law raised in the curative petition which require consideration and directed the registry to list the matter in Open Court on September 30.

The case dates to 2010, when the Gujarat Electricity Regulatory Commission (GERC) decided Adani Power Mundra had illegally terminated the PPA the latter had signed with GUVL. This decision of GERC was later upheld by the Appellate Tribunal for Electricity.

Adani contended that GMDC, again a state government entity, did not develop the Naini coal block. The block was allocated to the state agency by the ministry of coal but was de-allocated in 2014. GMDC was supposed to construct a power plant near the coal mine but decided to transport coal to Gujarat for two power units of Adani Power and Torrent Power. Adani Power signed the PPA in 2007 with GUVNL for supply of 1,000 Mw at Rs 2.35/unit from its power project at Korba, Chhattisgarh, based on coal supply from Naini. GMDC had agreed to supply 4 million tonnes of coal a year to Adani.

Later in 2007, Adani told GUVL it would supply power from its Mundra power project in Kutch, Gujarat, instead of from Chhattisgarh, since GMDC was lagging in coal production. However, despite repeated reminders to the Gujarat government, GUVL and GMDC, the coal supply did not start. Due to which, the PPA Adani had signed was terminated. Adani argued the agreement for supply of power was based on the assurance given by GMDC.

GUVL held the company should have supplied power, irrespective of whether it got the coal or not. In appeal, the Apex Court observed that the findings of the Tribunal and Commission that termination clause can be invoked only when there is an agreement between the parties that there is violation of any of the conditions specified is totally incorrect.

The Court allowed the appeal filed by Adani and held that compensatory tariff be paid to Adani based on the principles of economic justice since Adani would have incurred huge losses.The review petition filed by the GUVL was dismissed by the same bench on September 3.

In its 2019 judgment, the Supreme Court has allowed Adani to seek a compensatory rate for electricity it had alternatively supplied to Gujarat from its Korba power project in Chhattisgarh. The rate will be decided by the Central Electricity Regulatory Commission within three months from the date it is approached by the company./ILNS/SS/SNG

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Supreme Court issues notice in Gujarat PSU plea against Adani Power’s termination of PPA

New Delhi Sept 17 (ILNS) The Supreme Court on Thursday issued notice in a curative petition of...

Delhi Court issues notice to ED on the Bail application of Avantha Group promoter Gautam Thapar, accused in a bank loan fraud case

New Delhi, Sept 17 (ILNS) A Special Court in Delhi issued notice to the Enforcement Directorate on...

Allahabad High Court says two adults have right to choose their matrimonial partner irrespective of religion

Allahabad Sept 17 (ILNS) The Allahabad High Court on Thursday said that two adults have the right...

Delhi High Court seeks response from Delhi Police Commissioner on plea on crackers licence

New Delhi Sept 17 (ILNS) The Delhi High Court, on Thursday, sought response from the Commissioner of...

Delhi High Court issues notice to Centre, Defence Ministry on plea challenging curbs on strike by defence personnel

New Delhi Sept 16 (ILNS) The Delhi High Court on Thursday sought response from the Centre and...

Allahabad High Court directs shifting of monkeys to forest within three months for creating upheaval in Varanasi city

Allahabad Sept 16 (ILNS) The Allahabad High Court has directed to shift the monkeys who created upheaval in Varanasi city,...

Must read

You might also likeRELATED
Recommended to you