Adani Power scrip hits circuit as Rajasthan discoms pay ₹3,000 crore – EQ Mag Pro

NEW DELHI: Adani Power shares on Tuesday shot as much as a 52-week excessive, hitting the ten% higher circuit on reviews the corporate has acquired Rs 3,000 crore in previous dues from three Rajasthan discoms (distribution firms).

The scrip was additionally propelled by the information of 32 lakh shares, or 0.2% of the fairness, exchanged fingers in a block deal. The purchaser remained unidentified.

The firm acquired the cost beneath a March 25 Supreme Court order asking Rajasthan Urja Vikas Nigam, Jaipur Vidyut Vitran Nigam and Jodhpur Vidyut Nigam to pay previous dues with curiosity inside 4 weeks or face the prospect of the discom brass to personally seem in courtroom to elucidate.

At the listening to on March 31, the discoms knowledgeable the courtroom that they’ve paid Rs 3,000 crore to the corporate on March 30 as per its order.

Adani Power had signed an settlement with the Rajasthan discoms in March 2008 to arrange a 1,200 MW coal-based energy challenge within the state’s Kawai space at a price of Rs 6,000 crore.

According to the settlement, Adani Power was to arrange the plant and Rajasthan needed to facilitate coal provide from the Central authorities or different sources. As the state authorities couldn’t prepare coal, Adani Power used imported coal to fulfil its provide dedication.

Since imported coal is costlier than home coal, Adani Power claimed a better tariff as increased gasoline prices are allowed to be handed on to customers. The state tariff regulator in 2018 allowed compensatory tariff to Adani Power.

The discoms challenged this on the Appellate Tribunal for Electricity, which upheld the state regulator’s order. The matter finally moved to the Supreme Court, which settled the case in favour of the provider.

Source: PTI