Haryana Establishes High-Power Committee to Address Adani Power PPA Challenges
In a decisive move to resolve protracted power sector disputes, the Haryana government has officially notified the Terms of Reference for a High-Power Committee. This panel is specifically constituted to examine critical issues surrounding the Power Purchase Agreement (PPA) and Supplementary Power Purchase Agreement (SPPA) of M/s Adani Power Limited (APL). The committee's formation marks a significant step toward ensuring stable and affordable electricity supply for consumers across the state.
Committee Composition and Mandate
The High-Power Committee is chaired by Justice Krishna Murari, a former judge of the Supreme Court of India, bringing considerable legal expertise to the table. Other distinguished members include:
- S D Dubey, former chairman of the Central Electricity Authority (CEA)
- T C Gupta, retired IAS officer currently serving as Chief Commissioner of the Haryana Right to Service (RTS) Commission
Issued under the authority of Shyamal Misra, Additional Chief Secretary to the Government of Haryana's Energy Department, the notification empowers the committee to conduct a comprehensive examination of all documents related to Adani Power's Mundra Thermal Power Plant (TPP), particularly units 7 to 9 that supply electricity to Haryana.
Addressing Financial and Operational Hardships
The committee's primary objective is to analyze whether Adani Power Limited has encountered any financial or operational hardship in supplying power to Haryana. If such hardship is established, the panel will examine appropriate mitigation measures, considering the actual costs incurred by APL in delivering power compared to the energy charge rate under the existing PPA.
Sources indicate that APL has faced numerous challenges under long-term PPAs, including:
- A significant gap between the tariff fixed in PPAs and actual power generation costs
- Increased fuel and operational expenses since the agreements were signed
- Volatility in international coal prices affecting the Mundra plant's imported coal supply
- Changes in export regulations by coal-producing countries
Historical Context and Current Disputes
Under original long-term PPAs, Haryana's two distribution companies – Dakshin Haryana Bijli Vitran Nigam Ltd (DHBVNL) and Uttar Haryana Bijli Vitran Nigam Ltd (UHBVNL) – were contracted to purchase 1,424 MW of electricity from Adani Power's Mundra plant for 25 years. Subsequent Supplementary Power Purchase Agreements revised this to 1,200 MW (600 MW each), but disputes have disrupted this power supply.
The committee will focus on achieving an amicable resolution to pending claims and counterclaims between Haryana discoms and APL, which have been contentious for years. It will also examine:
- Rights and obligations related to the Payment Security Mechanism (PSM) under PPAs
- Overall viability of the PPA under existing tariff structures
- Measures to ensure long-term sustainability of the agreement
Committee's Authority and Timeline
The High-Power Committee has been empowered to call upon both the Haryana Power Purchase Centre and Adani Power Limited to submit necessary details and clarifications during its examination. Additionally, it has the flexibility to examine any other relevant issues and suggest sustainable solutions for dispute resolution.
The committee is expected to finalize its recommendations within 180 days from January 30, 2026. To facilitate its work, the Chief Engineer of HPPC, UHBVNL, Panchkula has been designated as the nodal officer responsible for presenting documents and preparing meeting minutes.
The notification clarifies that while the committee operates, the state government reserves the right to take any further action deemed necessary at any stage. This initiative represents a crucial effort to balance corporate viability with consumer interests in Haryana's power sector.
