Shares of Tata Power and Adani Power recovered slightly as falling as much as 8.7 per cent and 11.6 per cent, respectively earlier in the day after reports said that the Appellate Tribunal for Electricity has denied compensatory tariff for the Indonesian coal-based power plants of the two companies in Mundra, Gujarat.
According to reports, APTEL has not only rejected the plea of the two companies for getting a compensatory tariff for the change in Indonesian law which led to higher coal prices for the Tata Power’s and Adani Power’s plants in Mundra.
APTEL has also adjudicated that the Central Electricity Regulatory Commission cannot levy compensatory tariff.
However, after Tata Power officials clarified that while compensatory tariff has been denied under 79 points, it has been accepted under the force majeure clause by APTEL.
As a result, share prices of Tata Power and Adani Power recovered.
Tata Power shares ended the session down by 4.28 per cent at Rs 63.80 on the BSE, while Adani Power shares ended down by 3.65 per cent at Rs 32.95.
Details on the order are still awaited.