Adani Power shares in focus as SC agrees to hear appeal in Punjab State Electricity Regulatory Commission case
Adani Power shares will remain in focus on Tuesday, January 7, after the Supreme Court on Monday agreed to examine the company's appeal against the Punjab State Electricity Regulatory Commission's (PSERC) refusal to approve a 2006 power purchase agreement (PPA) between the former Udupi Power Corp and a Punjab state discom.
A Bench led by Justice PS Narasimha issued a notice to the Punjab State Electricity Regulatory Commission (PSERC) and Punjab State Power Corp (PSPCL) on Adani Power's appeal challenging the Appellate Tribunal for Electricity’s September order that upheld the Commission’s decision to refuse approval.
The agreement was signed between Udupi Power Corp and Punjab State Power Corp for the supply of 101.5 MW of power, which was 10% of the then proposed installed capacity of the 1,015 MW project located in Udupi, Karnataka. Adani Power is the successor in interest of Udupi Power. The generating company having a 600 MW imported coal-based power project in Udupi district supplies power to discoms in Karnataka, Punjab and Gujarat.
The Commission had refused to approve PSPCL’s proposal regarding procurement of 101.5 MW of power from Udupi in terms of the PPA, saying the need to procure power from Udupi on long-term basis is not established and it would not be economically viable propositions for PSPCL to purchase power from Udupi project at the given price determined by the Central Commission particularly when much cheaper power is available in the market.
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