Supreme Court Upholds Pro-rata Allocation of Linkage Coal for GMR Power Subsidiary

The Supreme Court has dismissed civil appeals filed by Distribution Licensees of Haryana and GRIDCO, upholding a common judgement dated 20 December 2019 of the Appellate Tribunal for Electricity. The case pertains to the proportionate allocation of Linkage Coal and the additional cost of coal procured to meet the shortage of supply under linkage amongst the three DISCOMs that GMR Kamalanga Energy Limited (GEKL), a subsidiary of GMR Power and Urban Infra Ltd, supplies power to. The Supreme Court confirmed GKEL’s position that linkage coal received is to be allocated on a pro-rata basis among the beneficiaries of the Project. Pending disposal of this matter by the Supreme Court, Haryana Discoms have been making part payments against such additional costs. The balance amount would now stand recoverable along with applicable interest as per terms of the PPA.