Between 2013 and 2018, Adani’s 1,320-megawatt thermal power generation plant at Kawai in Baran district operated on imported coal from Indonesia, because cheaper domestic coal was not available. Adani later claimed that a compensation of Rs 5,100 crore be paid on account of higher cost of Indonesian coal.
In September 2018, the Appellate Tribunal for Electricity (APTEL) had directed the public-sector electricity distribution companies (discoms) in Rajasthan to pay Rs 3,591 crore to Adani Group-owned Adani Power Rajasthan Limited (APRL). Following an appeal by the discoms before the Supreme Court, the apex court in October 2018 reduced the amount payable to around Rs 2,500 crore that Rajasthan had to pay.
However, the DRI has estimated 50 to 100% cost inflation on the imported coal.
The DRI also noted that “while Indonesian Coal was directly shipped from Indonesian ports to the importers in India, the import invoices were routed through one of more intermediaries based in Singapore, Dubai, Hong Kong, British Virgin Islands (U.K.) etc. for the purpose of artificially inflating its value.”
“Due to over invoicing Rajasthan consumers have been made to pay Rs 2,500 crore to Adani, mainly due to fraudulent over invoicing of coal,” says All India Power Engineers’ Federation (AIPEF).
— source newsclick.in | 26 Jun 2019