Adani Power Ltd., the generation unit of India’s biggest coal importer, fell by a record in Mumbai trading after Gujarat state’s electricity regulator ruled that the company must honor a supply agreement.
The shares dropped as much as 9.4 percent, the most since Adani Power started trading on Aug. 20, 2009. The stock was at 133.7 rupees at 2:55 p.m. local time, down 3.3 percent, compared with the 0.4 percent gain in the benchmark Sensitive Index.
The Gujarat Electricity Regulatory Commission said in a ruling published on its website that Ahmedabad-based Adani Power cannot terminate a 1,000-megawatt supply agreement signed with state-run Gujarat Urja Vikas Nigam Ltd. in February 2007. Adani Power terminated the accord in January as it couldn’t conclude a deal to secure coal for the proposed power plant in Mundra in the western state, the regulator said.
Adani Power Chief Financial Officer Ameet Desai didn’t immediately respond to an e-mail seeking comment.
The power company controlled by billionaire Gautam Adani plans to spend about 825 billion rupees ($18 billion) to increase capacity almost 17-fold to 16,500 megawatts in the next four years, with a focus on coal-fired generators. The utility currently produces 990 megawatts at Mundra, the site of a planned 4,620-megawatt plant.