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SBI moves SC, seeks amendment in pacts between discoms, 3 Gujarat power cos

SBI has moved the Supreme Court seeking implementation of a high power panel’s recommendation to amend the PPAs between various discoms and three Gujarat-based electricity producers who were running losses as they could not hike tariffs to compensate for the rise in cost of coal imported from Indonesia. SBI is part of a consortium of banks that funded the three power producers — Tata Mundra, Adani and Essar — who were not allowed by the apex court to charge compensatory tariff in lieu of the increase in cost of coal they were importing from Indonesia. The top court by its order of April 11, 2017 had set aside the decisions of the Central Electricity Regulatory Commission (CERC) and Appellate Tribunal for Electricity allowing the power producers to charge compensatory tariff. Thereafter, all stakeholders including the firms had a meeting with Union Finance Minister Arun Jaitley. Subsequently, the central government recommended formation of the high powered committee State Bank of India said in its application filed through advocate Sanjay Kapur. It also said that after the committee gave its recommendation, applications were moved by the Gujarat Urja Vikas Nigam Ltd (GUVNL) and the state government in the apex court for permission to amend the PPAs.

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