Tata Power and Adaro International have entered a legal conflict over a coal supply agreement, with both companies seeking compensation. The Tata Group company provided an update on the case on Thursday, September 19 evening, in an exchange filing.
The dispute stems from a contract signed in August 2020 for the supply of high-calorific coal to Tata Power’s Trombay plant. Both sides have since exchanged notices regarding the deal’s alleged breaches.
Adaro, a Singapore-based Indonesian mining company, has accused Tata Power of breaching the contract and is seeking $106 million (approximately ₹879.8 crore) in arbitration. In response, Tata Power counterclaimed $229.94 million (around ₹1,908 crore) for the non-supply of coal.
“During the performance of the agreement, differences arose between both the parties. Adaro issued a notice alleging a breach by TPCL, which was followed by the request for arbitration with an alleged claim of $106 million. To this, TPCL responded and raised counter-claims of $229.947 million for non-supply under the agreement,” Tata Power said in a regulatory filing.
Tata Power also stated that the arbitration process is still in its early stages. “The arbitration is currently in nascent stages and the constitution of the arbitral tribunal is yet to take place i.e. party nominated arbitrators are yet to be confirmed by ICC ICA and only after such confirmation, the process for appointment of presiding arbitrator will be initiated,” the company noted.
Despite the ongoing dispute, Tata Power confirmed that both parties have been in “serious discussions to amicably resolve the dispute.” However, arbitration at the International Chambers of Commerce International Court of Arbitration (ICC ICA) will proceed as planned.
Tata Power big order book
In parallel, Tata Power’s subsidiary, Tata Power Renewable Energy, secured a 400-megawatt hybrid project from the Maharashtra State Electricity Distribution Company Limited (MSEDCL), marking the company’s largest renewable energy project in Maharashtra.
Additionally, Tata Power Renewable Energy has signed a Memorandum of Understanding (MoUb) with Tata Motors to establish 200 fast-charging stations for electric commercial vehicles across major cities in India.
Furthermore, Tata Power has commenced production of solar cells at its 4.3 gigawatt facility in Tirunelveli, Tamil Nadu, the largest single-location solar cell and module manufacturing plant in the country.
