Adani Power surged up by 7 per cent

The company had filed a plea in the Supreme Court with regards to the cancellation of PPA with Gujarat Urja and the same has been allowed by the court. The stock of Adani Power trade close to its upper circuit limit of 10 per cent on Tuesday.

Adani Power's wholly-owned subsidiary, Adani Power Mundra Limited's civil appeal for the cancellation of Power Purchase Agreement (PPA) with 1000 MW capacity (Sid 2 PPA) signed with Gujarat Urja Vikas Nigam Limited has been allowed.

Earlier, Adani Power Mundra has made a civil appeal challenging the order of Appellate Tribunal for Electricity (APTEL) of September 7, 2011, in which APTEL had ruled against the termination of Sid 02 PPA by the company and termed it as invalid. As a result, Adani Power Mundra will now approach the Central Electricity Regulatory Commission demanding past compensation.

Last week, National Company Law Tribunal, Ahmedabad approved the resolution plan submitted by Adani Power Limited in respect of Korba West Power Company Limited, which is undergoing insolvency proceedings. Also, Adani received a Letter of Intent approving Adani Power's resolution plan for GMR Chhattisgarh Energy Ltd (GCEL). Post the acquisition of Korba West Power and GMR Chhattisgarh Energy, Adani Power will have a combined thermal power capacity of 12,410 MW. Korba West has a 600 MW power plant, while GMR Chhattisgarh has a 1,370 MW power plant.

Elated with all these positive news, the stock has been gaining in the last two trading day. The stock was actively traded in the exchange with huge volumes on Tuesday and closed at Rs. 64.80 per share, up by Rs. 4.55 or 7.55 per cent on BSE.