Shares of Adani Power and Tata Power today saw huge selling pressure and tumbled up to 16 per cent after the Supreme Court said that power distribution firms cannot charge "compensatory tariff" from consumers and set aside the appellate tribunal's judgement in this regard.
The scrip of Adani Power plummeted 16.12 per cent to close at Rs 37.20 on BSE. During the day, it nosedived 17.58 per cent to Rs 36.55.
Shares of Tata Power lost 1.95 per cent to end the day at Rs 85.40. Intra-day, it plunged 6.65 per cent to Rs 81.30.
Adani Power's market valuation fell by Rs 3,925.97 crore to Rs 13,179.03 crore, while Tata Power lost Rs 459.23 crore to Rs 23,098.77 crore.
Tata Power's wholly-owned subsidiary Coastal Gujarat Power and Adani Power had originally moved Central Electricity Regulatory Commission (CERC) seeking higher tariff on the grounds that their input costs had gone up due to devaluation in the rupee and higher costs of coal imported from Indonesia, owing to a regulation passed by the Southeast Asian nation.
While setting aside the appellate tribunal's judgement as well as the CERC's order, a bench of Justices P C Ghose and R F Nariman said that an unexpected rise in coal price would not absolve the firms from adhering to the contract as they had knowingly taken the risk while submitting their bids.
In a BSE filing Adani Power said, Supreme Court in its judgement today has granted relief for the cost burden arising due to shortage in supply of domestic coal under "change in law" provisions.
Adani Power had sought relief on two grounds viz. Adverse impact on fuel cost due to increase in Indonesian coal price on account of change in regulations in Indonesia and increase in coal cost on account of non availability or short fall in supply of domestic coal, the filing added.
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