The Adani Group has waived the recovery of Rs 12,000 crore compensation from the Gujarat Urja Vikas Nigam Limited (GUVNL), which was granted to it by the Supreme Court in 2019.
In 2007, Gujarat Urja Vikas Nigam Limited (GUVNL) had signed two Power Purchase Agreements (PPAs) with Adani Power Limited’s (APL) imported coal-fired power stations at Mundra. After coal prices shot up post the Indonesian government deciding to price its coal exports based on international prices, APL sought fair equivalence through alternative coal supplies from the Gujarat Mineral Development Corporation (GMDC) and, when that failed, through compensatory tariffs from GUVNL.After the state utility declined the request, APL terminated the PPA in 2019. The matter reached the SC for resolution.
In October 2021, during the severe coal shortage that almost crippled the national power sector, Adani Power Ltd agreed to restart its Mundra plant operations. At the behest of the Centre and the Gujarat government, APL arranged to provide 1,200 MW power to Gujarat.
While APL won the case in the Supreme Court, the two sides agreed to move ahead with an out of-court settlement to bring relief to a vast number of consumers in Gujarat.Last week, GUVNL filed to withdraw its curative petition before the Supreme Court stating that it had arrived at a settlement with APL. Both parties are expected to file similar joint applications in other pending cases before the respective authorities.