India’s top court ruled in favor of billionaire gautam adaniThe U.S. power unit says state-run distribution companies in the state of Rajasthan will have to pay Rs 30.48 billion ($405 million) to Adani Power Ltd and additional interest to offset higher fuel costs.
Adani is fighting several court battles against states, including Rajasthan and Haryana, seeking compensatory charges that reflect the cost of expensive imported coal used to set fire to its plants. On Friday, India’s Supreme Court ruled that four electricity retailers must pay the money to Adani Power within four weeks, to clear the dues since 2013.
State-run electricity retailers, who lose money on about a fifth of the electricity they supply due to power theft and leakage through old cable networks, owe billions of dollars in payments to power generators. The latest decision will help Adani Power to repay loans or meet capital requirements for projects.
Following the decision, shares of Adani Power in Mumbai rose up to 15 per cent, the biggest gainer in more than a week. The benchmark S&P BSE Sensex was trading 2.8% higher at 11:50 am local time.
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