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

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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.


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Published On : 2nd Mar, 2024

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