Don't see further litigation on CERC order: Adani Power

Adani Power sees less likelihood of any further litigation on Central Electricity regulatory Commission's order , which proposes to provide compensatory tariff to the company for the power purchase agreements with Gujarat and Haryana.

"One hopes there is much less likely hood of any litigation as there is going to be joint and consensus based decision of all the concerned including utilities, us, bakers and analyst," Ameet Desai, Director, Adani Power told CNBC-TV18 today.

CERC on Tuesday issued an order allowing a compensatory tariff to Adani Power for its PPA with Gujarat and Haryana following the company's petition for hike in tariffs due to escalation in imported coal prices. Adani Power had appealed to CERC after Gujarat and Haryana refused to pay higher rates for the electricity generated from the company's Gujarat coal-based plant.

Although the Guatam Adani owned company was unable to anticipate the quantum of compensatory package, he is hopeful that fair tariff will emerge from discussion with concerned parties. CERC order demanded to set up a committee consisting members of Adani power, state utilities, bankers and analysts to study escalation in coal prices and come up with a compensatory package.

Desai further cleared that CERC order does not set any precedent for other power companies for renegotiation of tariffs under power purchase agreements. He stressed that CERC order very clearly puts restriction on renegotiation of tariffs.