CHANDIGARH: All India Power Engineers Federation (AIPEF) has written to Chief Minister Rajasthan and others to appear in the supreme court as a key stake holder in the matter of compensation claim of Adani Power Rajasthan Ltd. (APRL) on account of using imported coal at Kawai and recovery of over invoiced cost of imported coal .

Padamjit singh Chief Patron AIPEF said that at the time of bid processing, APRL had submitted two rates- one based on Domestic coal and second based on importee coal. However , APRL committed that whether domestic or imported coal was used, the energy rate based on domestic coal would apply. The LOI was unconditionally accepted by APRL and the PPA was signed in January 2010 incorporating this very condition. Adani commissioned both 660 MW units in 2013 without t arranging domestic coal and started using imported coal from the very beginning.

Now APRL is claiming the bogey of “Change in Law” as per coal distribution policy of 2007, CIL was to supply 100% of the coal requirement but in 2013 policy was amended in 2013 under which 65% of the coal requirement was to be met by CIL and therefore costlier Indonesian coal had to be used from May 2013 for a period of about 5 years.

APRL filed its claim for compensation on account of using higher cost imported coal instead of domestic coal before the Rajasthan Electricity Regulatory Commission . The commission issued an order in May 2018 allowing the claim of APRL which was later quantified as being of the order of Rs. 5130 crore.

Rajasthan Discoms appealed to the Appellate Tribunal for Electricity which ruled that 70% of the claimed amount be paid to APRL initially pending final decision in the appeal. Rajasthan discoms appeal to the Supreme Court against APTEL order of which upheld the order of APTEL but reduced the quantum of compensation to 50%.

Padamjit said that, however, the aspect of over invoicing of imported coal has not been dealt with in any one of the judgments. Over invoicing involves two dimensions, inflating the cost of the coal and secondly inflating the gross calorific value.

The Department of Revenue Intelligence ( DRI ) is probing at least 40 companies including six Adani companies for alleged overvaluation of coal imports from Indonesia pegged at Rs 29,000 crore between 2011 and 2015. After its failure to get import documents from Singapore court DRI approached Bombay High Court for the release of documents without success. The DRI has now filed a SLP in Supreme Court against the Bombay High Court Order