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The Supreme Court has ordered Vedanta Limited's subsidiary, Talwandi Sabo Power (TSPL), to pay about Rs 127 crore, plus applicable late payment surcharges, to the Punjab State Power Corporation (PSPCL).
Grid Code Violation Leads to Penalty
The penalty is for misdeclaring power availability in January 2017, violating Grid Code provisions. The Supreme Court's decision reinstates an order from the Punjab State Electricity Regulatory Commission (PSERC), reversing a previous judgment by the Appellate Tribunal for Electricity (APTEL).
Vedanta disclosed this development in a regulatory filing for TSPL. The company is also proceeding with the listing of TSPL's equity shares on the BSE and NSE after a demerger.
TSPL's Role in Punjab's Power Supply
Talwandi Sabo Power operates a 1,980 MW super-critical coal-based thermal power plant in Punjab's Mansa district. It supplies all its generated power to PSPCL, meeting roughly 35% of the state's energy needs. The project was initially built by the Punjab State Electricity Board and later awarded to Vedanta (then Sterlite Energy) under a Build-Own-Operate model.