APTEL allows compensation claim to Adani Power for shortage in linkage coal supply from Coal India Ltd.

The APTEL has allowed compensation for domestic coal shortfall arising from change in law pertaining to the New Coal Distribution Policy, 2007 ("NCDP"), and the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India policy of the Government of India ("SHAKTI Policy").

Sep 17, 2019 07:09 IST India Infoline News Service

Adani Green Energy
Shares of Adani Power are currently trading lower by ~1% amid a weak market. 

The Hon'ble Appellate Tribunal for Electricity (the "APTEL") has issued a Judgement, allowing the claim of compensation for non-availability/shortage in linkage coal supply from Coal India Limited, and use of alternate coal by the Company's wholly owned subsidiary, Adani Power Rajasthan Limited ("APRL") in respect of Power Purchase Agreement ("PPA") of 1200MW signed by APRL with Distribution Companies of Rajasthan (the "Discoms").

The APTEL has allowed compensation for domestic coal shortfall arising from change in law pertaining to the New Coal Distribution Policy, 2007 ("NCDP"), and the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India policy of the Government of India ("SHAKTI Policy").

In addition to this, the APTEL has also granted Carrying Cost pertaining to the above. The APTEL has further directed the discoms to pay to APRL: (i) the balance amount of change in law compensation pertaining to NCDP along with carrying cost within two months from the date of Judgement; and (ii) the claim pertaining to the period after the grant of coal linkage under the SHAKTI Policy, along with carrying cost within three months of submission of claim along with requisite documents by APRL.
Adani Power Ltd is currently trading at Rs64.15 down by Rs0.6 or 0.93% from its previous closing of Rs64.75 on the BSE.
The scrip opened at Rs64.70 and has touched a high and low of Rs65.35 and Rs63.90 respectively. So far 66,14,247 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs24,973.68cr.

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