The Supreme Court decides to review Adani Power’s appeal in the Punjab State Electricity Regulatory Commission matter.

The Supreme Court has agreed to hear Adani Power’s appeal against the Punjab State Electricity Regulatory Commission’s (PSERC) refusal to approve a 2006 power purchase agreement (PPA) signed between erstwhile Udupi Power Corp and Punjab State Power Corp. The PPA was for the supply of 101.5 MW of power, which was 10% of the then proposed installed capacity of the 1,015 MW project in Udupi, Karnataka. Adani Power, the successor in interest of Udupi Power, claims that the Commission’s decision is unjustified and will have far-reaching consequences for the power sector. The company argues that the Commission had earlier regulated power purchase and approved power procurement by Punjab State Power Corp from Udupi power project, effectively deeming the PPA to be approved. Adani Power also claims that the Commission’s decision will lead to regulatory uncertainty and jeopardize investments in the power sector. The company has invested around Rs 6172 crore in its 1200 MW Udupi TPS, and is seeking to have the PPA approved and to protect its legitimate expectations.