Adani Power asks RUVNL to pay Rs 13.76 billion late fee

Rajasthan Urja Vikas Nigam Limited (RUVNL) has decided to move the Supreme Court after Adani Power approached the apex court demanding Rs 13.76 billion from the state power companies as late payment surcharge (LPS).

Power companies have already paid Rs 102.86 billion to Adani Power for the purchase of coal from Indonesia. After the Supreme Court had ordered to pay a 9 per cent carrying charge (interest) along with the principal amount of coal payment, the state power companies paid  Rs 102.86 billion, out of which Rs 48.11 billion was the carrying charge. However, Adani Power claimed that as per the power purchase agreement, LPS is also to be paid and the condition of the agreement was being ignored. Notably, RUVNL is expected to contest the claim in the apex court as LPS was not mentioned separately in the order of the Supreme Court and it was a part of the carrying charge.