The order of the Central Electricity Regulatory Commission (CERC) allowing Adani Power to charge "compensatory" tariffs for electricity from its Mundra plant has not gone down well with Haryana government.
The state government plans to take legal action against the CERC order as it feels that the order violates the power purchase agreement signed by it with Adani Power.
The state government maintains that it would make the payment according to the rate at which it signed the agreement. Some reports indicate that even Gujarat government may explore all options to defend itself.
According to the CERC order, Adani Power is allowed to raise tariffs for electricity supplied (from its Mundra plant) to existing clients in two states.
The regulator said Adani should be allowed such a tariff, citing what it called the "unforeseen" events of the rising cost of imported coal from Indonesia coupled with the shortage of domestic supplies from state-run Coal India (CIL).
Indian power companies welcomed the order saying it would give fillip to the sector stricken by domestic fuel shortages and the rising cost of imported coal.
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