Synopsis: Latest news on Adani power is that after noting that GUVNL’s curative appeal raises major legal problems, a five-judge bench led by Chief Justice of India NV Ramana issued notices on the petition.
The Latest Adani Power news is that the Supreme Court has decided to review its decision from 2019, in which Adani Power (Mundra) was granted permission to cancel the power purchase agreement (PPA) with Gujarat Urja Vikas Nigam (GUVNL).
After noting that GUVNL’s curative appeal raises major legal problems, a five-judge bench led by Chief Justice of India NV Ramana issued notices on the petition.
Notices have also been sent to the Gujarat Electricity Regulatory Commission (GERC) and an NGO, Consumer Education and Research Society, in addition to Adani Power (Mundra).
“We have gone through the curative petition and the relevant documents. In our prima facie opinion, there are substantial questions of law raised in this curative petition, which require consideration. Issue notice” stated the court’s order on September 16.
The petition will be heard in open court on September 30 by a panel that includes justices Uday U Lalit, AM Khanwilkar, BR Gavai, and Surya Kant. Following the dismissal of the main petition and the review petition, a petitioner may file a curative petition.
A three-judge court of Justices Arun Mishra, BR Gavai, and Surya Kant ruled in July 2019 that Adani Power was justified in terminating the PPA since it could not acquire coal from the Gujarat Mineral Development Corporation’s Naini block on time (GMDC).
Adani was also allowed to demand a compensation rate for the electricity it had alternatively provided to Gujarat from its Korba power facility in Chhattisgarh, according to the supreme court’s 2019 judgement.
It had urged the Central Electricity Regulatory Commission (CERC) to make a decision on Adani Power’s compensating rate within three months of the firm approaching it.
GUVNL will then have three months from the date the CERC makes its decision to pay Adani.
The controversy dates back to 2010 when the Gujarat Electricity Regulatory Commission (GERC) claimed Adani Power had terminated the PPA it had signed with GUVNL in an improper manner.
The Appellate Tribunal for Electricity later confirmed the GERC ruling, prompting Adani to appeal to the Supreme Court.
According to Adani’s claim before the Supreme Court, it signed a power purchase agreement (PPA) with GUVNL in 2007 for 1,000 MW of power at Rs. 2.35 per unit from its power plant in Korba, Chhattisgarh, based on coal supply from Naini.
By developing the Naini coal block, GMDC pledged to supply Adani with 4 million tonnes of coal per year.
Adani later advised GUVNL in 2007 that because GMDC was behind in coal output, it would supply power from its Mundra power facility in Kutch, Gujarat, rather than from Chhattisgarh.
The coal supply, despite repeated reminders to the Gujarat government, GUVNL, and GMDC, has yet to begin. Adani stated that it was obliged to terminate the PPA in December 2009, claiming that the agreement for electricity delivery was based on GMDC’s promise.
