Adani Power (Mundra) and Gujarat Urja Vikas Nigam (GUVNL) reached an amicable settlement regarding a dispute over the termination of the Power Purchase Agreement (PPA) between the two parties.
Adani also agreed to waive his right to any compensation, which the industry estimates to be around Rs 11,000 crore, which was to be payable by GUVNL.
A joint application filed on behalf of GUVNL and Adani Power (Mundra) to the Supreme Court indicates that the two parties have reached a settlement agreement.
“With regard to the deed of settlement concluded between the parties, respondent no. 1 (Adani Power) agreed that the termination of offer 2 PPA of 02.02.2007 which was the subject of the decision of 02.07. 2019 of the Hon ‘ble Court will not have effect and Respondent 1 duly waives any right to enforce such termination, ”the claim reads.
“Respondent n ° 1 further agreed that he would not claim any compensation under the decision of 02.07.2019 adopted by the Court of Honor and would waive his right to claim such compensation in perpetuity”, indicates in besides demand. .
The two parties also agreed to withdraw the proceedings pending before the Central Electricity Regulatory Commission. For its part, GUVNL accepted the reworked methodology for the payment of energy charges to Adani Power for the production and supply of electricity under the power purchase agreements.
In September 2021, the Supreme Court asked Adani Power to respond to a curative request filed by GUVNL against the order issued by the Supreme Court a year earlier which characterized Adani Power’s unilateral termination of the PPA as valid and legal.
The court also ordered the CERC to determine the compensatory tariff for the electricity supplied by Adani Power to the state PSU.
Adani Power (Mundra) signed a PPA with GUVNL in 2007 to supply 1,000 MW of its project in Korba, Chhattisgarh. But citing the Gujarat Mineral Development Corporation’s lack of coal supply, Adani Power ended the pact saying electricity supply was conditional on coal supply. Adani then told GUVNL that he would instead provide electricity from his Kutch-based Mundra power plant.