Adani in the news

Apex court admits Adani plea on power supply pact
The Hindu Business Line - August 13, 2012

The Supreme Court on Monday admitted a plea by Adani Power Ltd seeking to terminate a pact to supply power to public sector Gujarat Urja Vikas Nigam Ltd (GUVN).

According to the agreement inked in 2007, the company was to supply GUVN 1,000 MW of power for 25 years at a levelised tariff of Rs 2.35 a unit.

The company had sought the termination of the power purchase agreement in November 2008 claiming difficulties in obtaining fuel (coal) sourcing (from Gujarat Mineral Development Corporation Ltd). It had also reportedly cited the rise in prices of imported coal, for instance from Indonesia.

Aggrieved by the move, GUVN moved the Gujarat Electricity Regulatory Commission, which then asked Adani Power not to terminate the pact and directed it to provide power as per the conditions stated in the agreement.

Adani Power appealed to the Appellate Tribunal for Electricity, which also ruled in GUVN’s favour last year.

Following this, the company approached the apex court.

Mean while, GUVN had filed a caveat asking the apex court not to pass any order in the matter without hearing it.