Rough road ahead for Adani group over paring debt

Adani Enterprises stock falls 20% in a single day

The Supreme Court order on compensatory power tariffs could make it difficult for the Adani group to deleverage its balance sheet. Nearly half of the group’s Rs 1.1 lakh crore combined debt of its listed companies is accounted for by Adani Power.

The Central Electricity Regulatory Commission (CERC) had in April 2013 allowed higher tariffs for Adani Power’s 1,980 MW Mundhra power project to compensate for rising coal prices. As a result, Adani Power’s operating profit climbed from Rs 1,174 crore in 2012-13 to Rs 8,754 crore in 2015-16 and it turned profitable (on a net basis) beginning 2013-14 despite a