MERC allows compensation to APML due to shortage of captive coal

The Maharashtra Electricity Regulatory Commission (MERC) has allowed compensation on account of non-availability of coal from the Lohara coal block to Adani Power Maharashtra Limited (APML). The compensation has been granted for a 1,320 MW PPA dated September 8, 2008 signed with MSEDCL for APML’s Tiroda thermal power plant. APML has been allowed compensation on account of non-availability of coal from the Lohara coal block. The MERC has stated that deallocation of the Lohara coal block by the MoC will qualify as a change in law and APML is entitled to compensation for alternative coal used to meet the shortfall from commencement of power supply under the PPA.

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