Supreme Court green light to end Adani-Gujarat power purchase agreement

The Supreme Court decided Adani Power Mundra was right in terminating the power purchase agreement (PPA) it had signed with Gujarat Urja Vikas Nigam (GUVNL), as it could not get coal supply on time from the Naini block of Gujarat Mineral Development Corporation (GMDC).

This could set a precedent for power companies that become unable to commission their capacity or suffer losses due to insufficient coal supply.

The apex court has also allowed Adani to seek a compensatory rate for the electricity it had alternatively supplied to Gujarat from its Korba power project in Chhattisgarh. Adani Power’s share price jumped 7.6 per cent on Tuesday, following the three-judge Bench’s decision.