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Adani Power's Gets Relief for Lohara Block Cancellation

Coal News - Published on Fri, 13 Sep 2019

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Financial Express reported that the Maharashtra Electricity Regulatory Commission validated Adani Power’s claim for compensatory tariff from state-owned discom Maharashtra State Electricity Distribution Company for additional costs incurred in supplying power from its 3,300 MW Tiroda plant, after the allocation of the Lohara coal block withdrawn due to environmental reasons. Analysts estimate the compensation could be around INR 2,500 crore including carrying costs for the supplies in the 2013-2018 period. Holding that the cancellation of the coal block qualifies as a ‘Change in Law’, the state power regulator asked the discom to reimburse the company for the expenses it had to bear to make fuel arrangements to compensate for the shortfall arising from the coal block de-allocation.

The Lohara block was allocated to the company by the Union coal ministry in 2007 and subsequently it was cancelled in 2009. The company had signed four power purchase agreements with Maharashtra between 2008 and 2013, for 3,085 MW capacity, to supply electricity from the Tiroda plant.

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Posted By : Rabi Wangkhem on Fri, 13 Sep 2019
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