Adani Power Rajasthan has filed a contempt petition in the Supreme Court against the power trading companies owned by the Rajasthan Government for non-payment of ₹6,738 crore.

In September 2020, the apex court had ordered three Rajasthan power distribution companies to pay a compensatory tariff to Adani Power Rajasthan since 2013 to recover the higher cost of imported coal.

The SC judgment was in line with an order passed by the Appellate Tribunal of Electricity (APTEL) granting compensatory tariff to Adani Power Rajasthan for its 1,200-MW Kawai thermal power plant.

Adani said it is facing severe financial hardship and grave prejudice due to the continuous default by the power trading companies in clearing the legitimate change in law dues pertaining to the last eight years.

“Due to such huge outstanding amount for a long time (since 2013), contempt petitioner (Adani Power Rajasthan) is unable to meet day-to-day operational expenses, debt service obligations and advance payments to coal suppliers,” Adani Power Rajasthan said.

State govt, Adani pact

In 2008, the Rajasthan government and Adani Group signed a pact to set up 1,200 MW coal-based power project in Kawai at an expense of ₹5,000 crore. Under this deal, the State government assured 100 per cent domestic coal linkage to the company. But the power unit was left out of the Centre’s list for supply of coal in 2013. The company then made a claim before the state electricity regulatory commission for a compensatory tariff, as it had to depend on coal imported from Indonesia.

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