Adani Power climbs after subsidiary gets compensation from MERC
September 12, 2019
Adani Power rose 3.58% to Rs 62.25 after the company said that its wholly owned subsidiary will receive compensation from MERC due to non-availability of coal from Lohara coal block.
Adani Power's wholly owned subsidiary Adani Power Maharashtra ("APML") has been allowed compensation on account of non-availability of coal from Lohara coal block by the M aharashtra Electricity Regulatory Commission ("MERC"). This compensation has been granted in respect of the 1.320 MW Power Purchase Agreement (PPA) dated 8 September 2008 signed by APML with the Maharashtra Electricity Distribution Co. (MSEDCL), for its power plant at Tiroda, in Maharashtra.
The Tiroda Thermal Power Station (TTPS) has an in stalled capacity of 3300 MW (5 X 660 MW supercritical units), of which Unit 2 & 3 have been tied up under the PPA dated 8 September 2008 and Unit 1, 4 & 5 have been tied up under separate PPAs executed with MSEDCL for 1765 MW .
As per the referred order from the MERC, the de-allocation of the Lohara coal block by the Ministry of Coal would qualify as change in Law, and APML is entitled to compensation for alternative coal used to meet the shortfall from the commencement of power supply under the PPA. Further, APML is also entitled to claim carrying costs on the claim amount till the date of the subject order. The announcement was made during trading hours today, 11 September 2019.
Shares of Adani Power rose 9.98% in four trading sessions to its current market price of Rs 62.25, from a recent closing low of Rs 56.60 on 4 September 2019.
On BSE, 7.31 lakh shares were traded in Adani Power counter, compared to a 2-week average of 8.48 lakh shares. The stock hit an intraday high of Rs 62.90 and an intraday low of Rs 60.35.
It hit a 52-week high of Rs 68.75 on 9 July 2019 and a 52-week low of Rs 21.10 on 8 October 2018.
On a consolidated basis, Adani Power reported a net profit of Rs 599.16 crore in Q1 June 2019 as compared with a net loss of Rs 825.15 crore in Q1 June 2018. Net sales surged 108% to Rs 7,804.78 crore in Q1 June 2019 over Q1 June 2018.
Adani Power is engaged in providing electric power generation by coal-based thermal power plants and coal trading.
News Source: Business - Standard