Adani Power shares sink further, fall 9%
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New Delhi: Extending the previous day’s sharp losses, shares of Adani Power Ltd and Tata Power Co. Ltd on Wednesday fell by up to 6% after the Supreme Court ruled that power discoms cannot charge “compensatory tariff” on costlier import and set aside appellate tribunal’s judgment in this regard.
Adani Power plunged 9% on Wednesday to Rs33.85 on the Bombay Stock Exchange (BSE). Tata Power too fell as much as 1.75% to Rs83.90 but pared the losses to close up 0.06% at Rs85.45.
In the previous session also, Adani Power stock had crashed by up to 16%.
Tata Power’s wholly-owned subsidiary Coastal Gujarat Power and Adani Power had originally moved the Central Electricity Regulatory Commission (CERC) seeking higher tariff on the ground that their input costs had gone up due to rupee devaluation and higher costs of coal imported from Indonesia following a regulation passed by the South-East Asian nation.
The apex court did not agree with the contention of these firms, which referred to the findings of the Appellate Tribunal for Electricity, that the rise in coal price consequent on change in the Indonesian law was a factor which entitled them to claim compensatory tariff.