‘State firm cut Adani Power’s penalty by Rs 160 cr’

The High Court Thursday sought a reply from the state government on a PIL alleging it had recovered Rs 160 crore less as penalty from Adani Power Limited (APL) that had violated its power purchase agreement with state-run Gujarat Urja Vikas Nigam Limited (GUVNL).

Written by Express News Service | Ahmedabad | Published:April 19, 2013 5:07 am

The High Court Thursday sought a reply from the state government on a PIL alleging it had recovered Rs 160 crore less as penalty from Adani Power Limited (APL) that had violated its power purchase agreement with state-run Gujarat Urja Vikas Nigam Limited (GUVNL).

The PIL,filed by Gautam Thaker,general secretary of People’s Union for Civil Liberty (PUCL) in Gujarat,has also demanded a CBI probe into the matter,besides seeking a direction to GUVNL to recover Rs 160 crore from APL.

As per its agreement with APL on February 6,2007,GUVNL was entitled to recover Rs 240 crore from the company for failure in ensuring proportionate availability of power from its 1320-MW plant at Mundra,the PIL stated.

Citing a report of the Comptroller and Auditor General of India (CAG),the petitioner alleged that GUVNL had applied incorrect rates to determine the penalty amount and that instead of recovering around Rs 240 crore in penalty,it recovered only Rs 79.82 crore from APL,thus causing a loss of Rs 160 crore to the public exchequer.

The next hearing in the matter has been kept after two weeks.

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