Adani Power waives off Rs 110 billion claim to settle PPA dispute

Adani Power Limited has dropped a compensation claim of about Rs 110 billion to reach an out-of-court settlement with Gujarat Urja Vikas Nigam Limited (GUVNL) in a dispute over termination of a power purchase agreement (PPA) of February 2007 to supply 1,000 MW of power.

Both Adani Power and GUVNL have filed a joint petition in the Supreme Court (SC) seeking dismissal of a curative petition filed by GUVNL against the SC’s July 2019 decision upholding termination of Adani Power’s PPA as legal and ordered GUVNL to compensate the company for power it supplied from alternative sources. The entities have now sought to set aside the 2019 order, saying they have settled their dispute over certain aspects of the 2007 PPA and the two supplementary PPAs signed in December 2018. As part of the agreement, Adani Power will not give effect to the termination of 2007 PPA (which was the main cause of contention) and forego compensation claims for power supply from alternative sources.

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