Adani Power shares surge after APTEL dismisses MSEDCL appeal

11 Jul 2024 , 02:53 PM

Adani Power shares surged after APTEL’s decision, with a notable rise following the dismissal of an appeal by Maharashtra State Electricity Distribution Company Ltd (MSEDCL) at the Appellate Tribunal for Electricity (APTEL).

At the time of writing on July 11, 2024 at 2:50 pm, shares of Adani power is currently trading at ₹725.85 which is a 0.23% gain than the previous close. The stock has gained a total of 197% in the last one year and 38% since the beginning of the year.

The dismissed appeal related to normative inland transportation costs for coal supplied under the Inter Plant Transfer (IPT) scheme to Tiroda Thermal Power Plant, as revealed in a stock exchange filing by Adani Power.

The exact impact of APTEL’s decision remains uncertain, with the matter referred back to the Central Electricity Regulatory Commission (CERC) to assess potential savings in railway transport costs.

Adani Power announced that Mahan Energen Limited (MEL) ceased to be its wholly-owned subsidiary after Reliance Industries acquired 5 crore ‘Class B’ equity shares in MEL.

In March, MEL entered a 20-year Power Purchase Agreement (PPA) with Reliance Industries for 500 MW under the Captive User policy, resulting in RIL acquiring a 26% stake in MEL’s Captive Unit.

The agreement designates one unit of 600 MW capacity at MEL’s Mahan thermal power plant as the captive unit, ensuring a reliable power supply for Reliance Industries.

Adani Power emphasized the strategic benefits of the agreement, enhancing MEL’s long-term revenue visibility through stable power purchase commitments.

Adani Power, a subsidiary of the Adani Group, operates as a major player in India’s energy sector, boasting substantial thermal power generation capacity and ongoing projects like the Adani Godda Power plant in Jharkhand and a significant solar installation in Gujarat.

The company has secured long-term power purchase agreements with several state governments, contributing to its prominent role in India’s energy landscape.

Based in Khodiyar, Ahmedabad, Adani Power continues to expand its footprint in both thermal and renewable energy sectors, reinforcing its position as a key player in India’s energy transition.