Vedanta arm Talwandi Sabo Power faces Rs 127 cr penalty

Vedanta Ltd's subsidiary Talwandi Sabo Power Ltd has been ordered to pay approximately Rs 127 crore to Punjab State Power Corporation Ltd following a Supreme Court judgment.

Vedanta Ltd has said that its subsidiary Talwandi Sabo Power Ltd (TSPL) has been held liable to pay approximately Rs 127 crore, plus applicable late payment surcharge, to Punjab State Power Corporation Ltd (PSPCL) following a Supreme Court judgment.

In a regulatory filing on Thursday, Vedanta said the Supreme Court has set aside the judgment passed by the Appellate Tribunal for Electricity (APTEL), and has restored the order passed by the Punjab State Electricity Regulatory Commission (PSERC).

By the said order, the apex court has upheld the alleged penalty on TSPL for misdeclaration of availability for January 2017 in terms of the Grid Code, along with the applicable Late Payment Surcharge, the filing said.

Talwandi Sabo Power Ltd is a 1,980 MW super-critical coal-based thermal power plant located at Banawala in Mansa district, Punjab.

The filing further said that TSPL will pay an amount of approximately Rs 127 crore and applicable Late Payment Surcharge to PSPCL.

TSPL supplies 100 per cent of its generated power to Punjab State Power Corporation, playing a critical role in supporting 35 per cent of Punjab's energy requirements through dependable, large-scale electricity generation.

Talwandi Sabo Power Ltd was established by the Punjab State Electricity Board as a special-purpose vehicle to develop a large-scale thermal power project in the state. The project was awarded to Vedanta Ltd (erstwhile Sterlite Energy Ltd) under a Build-Own-Operate model.