SBI Moves SC, Seeks Amendment In Pacts Between Power Firms, Discoms


SBI Moves SC, Seeks Amendment In Pacts Between Power Firms, Discoms

SBI has moved the Supreme Court seeking implementation of a high power panel’s recommendation to amend the PPAs between various discoms and three Gujarat-based electricity producers who were running losses as they could not hike tariffs to compensate for the rise in cost of coal imported from Indonesia.

SBI is part of a consortium of banks that funded the three power producers — Tata Mundra, Adani and Essar — who were not allowed by the apex court to charge compensatory tariff in lieu of the increase in cost of coal they were importing from Indonesia.

The top court by its order of April 11, 2017 had set aside the decisions of the Central Electricity Regulatory Commission (CERC) and Appellate Tribunal for Electricity allowing the power producers to charge compensatory tariff. Read more

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