Shares of Adani Power fell as much as 5% on BSE today after the Gujarat Electricity Regulatory Commission asked it to supply 1,000 megawatt (MW) power to
Gujarat Urja Vikas Nigam at Rs2.35 per unit for 25 years.
Adani Power shares closed today at Rs133.20, down Rs4.85 or 3.5% over the previous close. It had earlier been as low as Rs131.20 and as high as Rs135.30 after opening at Rs133.70. Close to seven lakh shares changed hands on the counter today.
Adani Power can not terminate a 1,000 MW power purchase agreement (PPA) with Gujarat Urja Vikas Nigam, GERC said in a ruling published on its website.
GERC and Adani Power had signed the PPA in February 2007. However, in November 2008, Adani Power sent a notice to Gujarat Urja Vikas Nigam, seeking
termination of the PPA citing its inability to execute a Fuel Supply Agreement (FSA) with Gujarat Mineral Development Corp. (GMDC).
This prompted Gujarat Urja Vikas Nigam to approach the regulator for remedial action.