Vedanta's Talwandi Sabo Power to Pay ₹127 Crore Penalty Following Supreme Court Ruling
Vedanta arm Talwandi Sabo Power faces Rs 127 crore penalty
The Economic Times
Image: The Economic Times
Vedanta Ltd's subsidiary, Talwandi Sabo Power Ltd (TSPL), has been ordered by the Supreme Court of India to pay approximately ₹127 crore (around $15.3 million USD) to Punjab State Power Corporation Ltd (PSPCL) due to misdeclaration of power availability in January 2017. This ruling overturns a previous decision by the Appellate Tribunal for Electricity.
- 01The penalty of ₹127 crore includes applicable late payment surcharges.
- 02The Supreme Court's ruling reinstates the order from the Punjab State Electricity Regulatory Commission (PSERC).
- 03Talwandi Sabo Power Ltd is a significant energy supplier, meeting 35% of Punjab's energy needs.
- 04The power plant has a capacity of 1,980 MW and is located in Banawala, Mansa district, Punjab.
- 05TSPL was established as a special-purpose vehicle by the Punjab State Electricity Board to develop a thermal power project.
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Vedanta Ltd's subsidiary, Talwandi Sabo Power Ltd (TSPL), has been mandated by the Supreme Court of India to pay a penalty of approximately ₹127 crore (around $15.3 million USD) to Punjab State Power Corporation Ltd (PSPCL). This ruling, announced in a regulatory filing, overturns a prior judgment from the Appellate Tribunal for Electricity (APTEL) and reinstates an order from the Punjab State Electricity Regulatory Commission (PSERC). The Supreme Court upheld the penalty against TSPL for misdeclaration of power availability for January 2017, which violated the Grid Code. TSPL is crucial for Punjab's energy infrastructure, supplying 100% of its generated power to PSPCL and fulfilling 35% of the state's energy requirements. The plant, which has a capacity of 1,980 MW, is situated in Banawala, Mansa district, Punjab. Established by the Punjab State Electricity Board, TSPL operates under a Build-Own-Operate model awarded to Vedanta Ltd, formerly known as Sterlite Energy Ltd.
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The penalty could affect TSPL's financial standing and operational costs, potentially influencing electricity prices in Punjab.
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