The Supreme Court has allowed states that buy power from large projects of the Tata, Adani and Essar groups to approach the central electricity regulator for a tweak in contracts to allow the producers to bill these states for higher cost of imported coal.
The decision is seen as a major relief for the ailing power plants, built at a cost of Rs 50,000 crore, and their investors. The shares of Tata Power closed 12.5 per cent higher while Adani Power rose 18.7 per cent on news of the order.
The decision also gives respite to the consortium of lenders led by State Bank of India, which argued through counsel Sanjay Kapur that unviable tariffs would impact loans worth Rs 42,000 crore. Read More
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