Archive · 28 May 2025
Supreme Court Sides with Adani Power in Coal Levy Dispute
Imagine a company that sells electricity to the government.
They made an agreement, like a contract, to sell electricity at a certain price.
Then, the government decided that a company that provides coal would charge extra for transporting it.
Adani Power said this new charge should be paid by the government because it changed the original agreement.
The Supreme Court agreed, saying the power company should get money to cover the new cost, making sure they don't lose money.
The court found that the new coal charge was a 'change in law' which meant the government should pay for it.
Supreme Court dismissed appeal filed by Rajasthan discoms.
The case involved a dispute over a Rs 50 per tonne coal levy.
APTEL previously ruled in favor of Adani Power.
The Supreme Court upheld APTEL's finding of a 'change in law'.
Adani Power had a PPA with discoms for the supply of 1200 MW of power.
- Who
- The Supreme Court upheld an order in favor of Adani Power Rajasthan Ltd against Rajasthan's power distribution companies.
- What
- The Supreme Court dismissed the appeal of Rajasthan's power distribution companies against an APTEL order in favor of Adani Power.
- When
- The Supreme Court delivered its verdict on Friday.
- Where
- The case involved Rajasthan's power distribution companies and Adani Power.
- Why
- The Supreme Court ruled on whether a levy by Coal India Ltd constituted a 'change in law' under the PPA, entitling Adani to compensation.
- Parties Involved
- Supreme Court, Adani Power Rajasthan Ltd (APRL), Rajasthan discoms, Coal India Ltd (CIL)
- Case Outcome
- Supreme Court dismissed the appeal of Rajasthan's power distribution companies
- Issue
- Levy of Rs 50 per tonne of coal by Coal India Ltd
- Date of APTEL Ruling
- April 2024
- Power Purchase Agreement (PPA)
- Signed in 2010 for 1200 MW of power