Adani Power drops Rs 11,000 crore claim to settle PPA dispute

NEW DELHI: Adani Power has waived compensation claim for an estimated Rs 11,000 crore to reach an out-of-court settlement with Gujarat Urja Vikas Nigam (GUVNL) in a dispute over termination of a February 2007 power purchase agreement (PPA) for supplying 1,000MW electricity.
The two entities have filed a joint petition in the SC seeking dismissal of a curative petition filed by the Gujarat power utility against the apex court’s July 2019 judgement upholding Adani Power’s termination of the PPA as legal and ordering GUVNL to compensate the company for power it supplied from alternative source.
Adani Power had moved the SC after losing the case against GUVNL in the state regulatory commission and the appellate tribunal for electricity.
The entities have now sought scrapping of the 2019 order, saying they have settled their dispute over the 2007 PPA and some aspects of two supplementary PPAs signed in December 2018.