ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Raising the ‘Bar’ for India’s Power Sector

Two prominent infrastructure companies belonging to Adani Group and Tata Group had sought the assistance of electricity regulators to hike the rate at which they sold power to several state power utility and distribution companies. They claimed that compensatory tariffs to the tune of nearly ₹8,000 crore were due to them as they had to absorb an increase in the price of coal imported from Indonesia used to fuel their power plants. But this was denied to them by the Supreme Court.

The authors wish to thank Paranjoy Guha Thakurta, editor of the EPW for his editorial inputs and Advait Rao Palepu for his research assistance.

This article follows the revelations made in this journal (“How Over-invoicing of Imported Coal Has Increased Power Tariffs: A ₹29,000 Crore Scam,” EPW, 9 April 2016, and “Power Tariff Scam Gets Bigger at ₹50,000 Crore: Did Adani and Essar Group Over-Invoice Power Plant Equipment?,” EPW, 21 May 2016) of how the Adani Group and others sought to exploit regulations by inflating power tariffs through the over-invoicing of imported coal and the over-invoicing of imported power generation equipment. The total size of scam is currently estimated to be around ₹50,000 crore, if not more.

.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Or

To gain instant access to this article (download).


Pay
INR 59

(Readers in India)


Pay
$ 6

(Readers outside India)

Published On : 2nd Mar, 2024

Support Us

Your Support will ensure EPW’s financial viability and sustainability.

The EPW produces independent and public-spirited scholarship and analyses of contemporary affairs every week. EPW is one of the few publications that keep alive the spirit of intellectual inquiry in the Indian media.

Often described as a publication with a “social conscience,” EPW has never shied away from taking strong editorial positions. Our publication is free from political pressure, or commercial interests. Our editorial independence is our pride.

We rely on your support to continue the endeavour of highlighting the challenges faced by the disadvantaged, writings from the margins, and scholarship on the most pertinent issues that concern contemporary Indian society.

Every contribution is valuable for our future.