Supreme court gave a shock to Tata power & Adani power

Vastavam Web: Supreme court overruled the verdict given by Appellate Elctricity Tribunal on 17th April last year regarding to collect componsatory tariff from customers in Gujarath, Haryana and other states. With the verdict both companies will lose their huge income says analysts. The present situation cause an extreme down fall of share value. Intraday losses 17.58 % . Tata power losses 6.65% but it can cop with power stock at the end.Adani power market value come down to 3,925 crores, whereas Tata power Rs 459 crores.

If we observe pro&cons it has an adverse impact on fuel cost due to increase in Indonesian coal cost due to changes in rules and regulations and increase coal cost on account of non availability/shortfall in supply of domestic coal. Mundra UMPP production of electricity demanded to permit them to enhance the charges, CERC granted permission but Supreme court denied to collect extra charges from the customers.