Petition of the Electricity Act of the Power Purchase Agreements between Gujarat Urja Vikas Nigam Ltd. and Adani Power Ltd. – EQ
Summary:
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## 1. Case Overview
| Parameter | Detail |
|———–|——–|
| **Petition No.** | 335/MP/2025 |
| **Petitioner** | Gujarat Urja Vikas Nigam Limited (GUVNL) – State discom |
| **Respondent** | Adani Power Limited (APL) – Power generator |
| **Legal Provisions** | Sections 79(1)(b) and (f) of the Electricity Act, 2003 |
| **Underlying Agreements** | PPAs dated 6.2.2007 and 2.2.2007<br>SPPAs dated 05.12.2018<br>SPPAs dated 30.3.2022 |
| **Date of Hearing** | 7 April 2026 |
| **Next Hearing Date** | **4 June 2026 at 2:30 PM (Physical Mode)** |
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## 2. Regulatory Context
The petition invokes CERC’s jurisdiction under:
| Section | Subject |
|———|———|
| **Section 79(1)(b)** | Regulating tariff of generating companies owned or controlled by Central Government |
| **Section 79(1)(f)** | Adjudicating upon disputes involving generating companies and transmission utilities |
> While APL is not a Central PSU, the petition likely arises from **inter-state aspects** of the PPAs/SPPAs, bringing it under CERC’s purview.
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## 3. Key Observations from the Proceeding
| Observation | Implication |
|————-|————-|
| **Matter not heard due to lack of time** | Adjourned without any substantive discussion |
| **GUVNL requested physical hearing** | Prefers in-person rather than virtual; wants **afternoon slot** |
| **No interim relief granted or denied** | Status quo maintained until next hearing |
| **Both sides represented by senior counsel** | High-stakes dispute – GUVNL by Sr. Adv. M.G. Ramachandran, APL by Sr. Adv. Amit Kapur |
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## 4. Strategic Business Implications
### For GUVNL (Discom)
– Seeks to **limit financial liability** under old PPAs
– May be challenging **change in law claims** or **fuel cost pass-through**
– Physical hearing request suggests desire for vigorous oral arguments
### For Adani Power
– Seeking to **enforce PPA terms** for higher tariff or cost recovery
– Likely claiming **non-payment or underpayment** by GUVNL
– Strong legal team indicates high commercial stakes (likely ₹100+ crore dispute)
### For Other Stakeholders (Lenders, Investors, Regulators)
– **Outcome will set precedent** for other old PPAs with similar clauses
– **Payment discipline** for discoms v/s generator rights under long-term PPAs
– May impact **trade receivables / securitization** of APL’s dues
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