SC Upholds ₹1.86 Billion Payment Order To Adani Power In Rajasthan PPA Case

The Supreme Court on Friday upheld a tribunal order directing Rajasthan’s power distribution companies to pay ₹1.86 billion toAdani PowerRajasthan Ltd., now merged into Adani Power Ltd., in connection with a power purchase agreement (PPA) between the two sides.

A bench of Justices M.M. Sundresh and Rajesh Bindal dismissed the discoms' appeal, stating there was no reason to interfere with the Appellate Tribunal for Electricity’s ruling. “Liability has been fastened upon the appellants under the agreement,” the court said, rejecting the argument that a delay in raising a supplementary bill invalidated the claim.

The dispute dates back to a 2009 competitive bidding process when Adani Power secured a contract to supply 1,200 MW from its Kawai Power Project to Rajasthan discoms at a tariff of ₹3.238 per unit, under a PPA approved by the state’s electricity regulator.

In 2017, Coal India Ltd. introduced an evacuation facility charge of ₹50 per tonne on most coal dispatches, classifying it as a "change in law" event. Adani sought compensation through a petition before the Rajasthan Electricity Regulatory Commission, which rejected the claim in 2019.

Adani then appealed to the tribunal, which accepted the delay in filing and ruled in its favour in April, allowing recovery of evacuation charges along with late payment surcharge. Rajasthan discoms challenged this in the Supreme Court, which has now backed the tribunal’s verdict.