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ARTICLE · 13 APRIL 2017

No Compensatory Tariff for GENCOs after Conclusion of PPA under Section 63, EA

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The Hon'ble Supreme Court by way of its judgment dated 11 April 2017 has set aside the common judgment dated 7 April 2016, rendered by Appellate Tribunal for Electricity ...

IndiaEnergy and Natural Resources
Divya Chaturvedi
Divya Chaturvedi
Arunima Kedia
Arunima Kedia
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Factual Background

The Hon'ble Supreme Court by way of its judgment dated 11 April 2017 has set aside the common judgment dated 7 April 2016, rendered by Appellate Tribunal for Electricity (APTEL) where APTEL had allowed the claims of Adani Power Ltd. (APL) and Coastal Gujarat Power Ltd. (CGPL), a wholly-owned subsidiary of Tata Power Ltd. to claim compensatory tariff in the wake of change in Indonesian Coal Regulations as 'Force majeure' event envisaged in the Power Purchase Agreement (PPA). Change in Indonesian Coal Regulations had led to increase in cost of production of electricity as APL and CGPL were sourcing coal from Indonesia for producing and supplying to several State distribution companies.

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