Shares of Adani Power
extended gains in today’s trade after the company's wholly-owned subsidiary Adani Power Maharashtra Limited (APML) was allowed compensation on account of non-availability of coal from Lohara Coal Block by the Maharashtra Electricity Regulatory Commission (MERC).
This compensation has been granted in respect of the 1,320MW Power Purchase Agreement (PPA) on September 8, 2008, signed by APML with the Maharashtra Electricity Distribution Co. Ltd. (MSEDCL), for its power plant at Gondia, Maharashtra.
The Tiroda Thermal Power Station (TTPS) has an installed capacity of 3,300MW (5 X 660MW supercritical units), of which Unit 2 & 3 have been tied up under the PPA on September 8, 2008, and Unit 1. 4 e- 5 have been tied up under separate PPAs executed with MSEDCL for 1,765MW.
As per the referred order from the MERC, the de-allocation of the Lohara coal block by the Ministry of Coal would qualify as Change in Law, and APML is entitled to compensation for alternative coal used to meet the shortfall from the commencement of power supply under the PPA.
Further, APML is also entitled to claim to carry costs on the claim amount till the date of the subject Order, the company said.
Adani Power Ltd is currently trading at Rs62.30, up by Rs2.2 or 3.66% from its previous closing of Rs60.10 on the BSE.