SC shoots down compensatory tariff for Tata Power, Adani Power

Sets aside Aptel order granting relief against hike in imported coal price; stocks dive

In an unexpected blow to Adani Power and Tata Power with respect to their power projects at Mundra, the Supreme Court set aside the appeal for compensatory tariff filed by the companies with the Appellate Tribunal for Electricity (APTEL). While the Tata Power project has a capacity of 4,000 Mw, Adani Power's is 4.620 Mw.

While the details of the court's order are awaited, the compensatory order being set aside implies a huge earnings setback for Tata Power and Adani Power.

In their appeal to Aptel, Tata Power and Adani Power had claimed a change in Indonesian regulations