Supreme Court pulls the plug on Tata, Adani power tariff relief

Earnings downgrade likely, order paves way for stricter power agreements

In a blow to Tata Power and Adani Power, the Supreme Court (SC) on Tuesday disallowed any relief to them in the five-year-old contentious issue of compensation to their respective power plants. 

The order sets a precedent for the power sector that consumers should not bear the cost of any change in international regulations. At the same time, the future of power plants using imported coal becomes bleaker.

The matter pertains to Tata Power’s 4,000-Mw Ultra Mega Power Plant and Adani Power’s 1,980-Mw plant at Mundra, based on imported coal, sourced from Indonesia.

The case was being fought between the