GOVERNMENT JOB ALERT
The Supreme Court of India on Tuesday set aside an order by the Appellate Tribunal For Electricity allowing compensatory tariff to Tata Power Ltd and Adani Power Ltd, sending down shares of both companies.Shares of Tata Power reversed early gains to fall as much as 6.78 per cent, while Adani Power slumped up to 20 per cent to its lowest since February 21.
At about 12.20 pm, Tata Power shares were down 3.96 per cent or Rs. 3.45 at Rs. 83.65. Similarly, Adani Power shares were trading down 16.35 per cent or Rs. 7.25 at Rs. 37.10.
The tribunal, in April last year, had said that the two companies needed to be compensated as the change in Indonesian laws on coal export prices were outside the control of these companies.The cost calculations of Tata Power and Adani Power went awry after the change in Indonesian regulations made coal exports from the country unviable. While the decline in international coal prices in recent times has brought some relief, the Mundra plants are still incurring losses. The plants account for a chunk of the companies’ generation capacities and have dragged their consolidated financials into the red.