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Adani Power, Tata Power shares sink further, down up to 6%

LiveMint logoLiveMint 12-04-2017 PTI

New Delhi: Extending the previous day’s sharp losses, shares of Adani Power Ltd and Tata Power Co. Ltd on Wednesday fell by up to 6% after the Supreme Court ruled that power discoms cannot charge “compensatory tariff” on costlier import and set aside appellate tribunal’s judgment in this regard.

Adani Power plunged 5.77% to Rs35.05 on the Bombay Stock Exchange (BSE). Tata Power too fell 1.75% to Rs83.90. In the previous session also, these stocks had crashed by up to 16%.

Tata Power’s wholly-owned subsidiary Coastal Gujarat Power and Adani Power had originally moved the Central Electricity Regulatory Commission (CERC) seeking higher tariff on the ground that their input costs had gone up due to rupee devaluation and higher costs of coal imported from Indonesia following a regulation passed by the South-East Asian nation.

The apex court did not agree with the contention of these firms, which referred to the findings of the Appellate Tribunal for Electricity, that the rise in coal price consequent on change in the Indonesian law was a factor which entitled them to claim compensatory tariff.

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