New Delhi, Apr 12 (PTI) Extending the previous day’s sharp
losses, shares of Adani Power and Tata Power today fell by up
to 6 per cent after the Supreme Court ruled that the power
discoms cannot charge “compensatory tariff” on costlier import
and set aside appellate tribunal’s judgment in this regard.
Adani Power plunged 5.77 per cent to Rs 35.05 on BSE.
Tata Power too lost 1.75 per cent to Rs 83.90.
In the previous session also, these stocks had crashed by
up to 16 per cent.
Tata Power’s wholly-owned subsidiary Coastal Gujarat
Power and Adani Power had originally moved the Central
Electricity Regulatory Commission (CERC) seeking higher tariff
on the ground that their input costs had gone up due to rupee
devaluation and higher costs of coal imported from Indonesia
following a regulation passed by the South-East Asian nation.
The apex court did not agree with the contention of these
firms, which referred to the findings of the Appellate
Tribunal for Electricity, that the rise in coal price
consequent on change in the Indonesian law was a factor which
entitled them to claim compensatory tariff.
This is published unedited from the PTI feed.