The Hon’ble Supreme Court of India has ruled against Talwandi Sabo Power Limited (TSPL), a subsidiary of Vedanta Limited, in a dispute with Punjab State Power Corporation Limited. The apex court set aside a previous tribunal order, upholding a penalty related to power availability declarations from January 2017. Consequently, TSPL is now required to pay approximately ₹127 crore to the state utility, along with applicable late payment surcharges.
Court Ruling Details
On May 20, 2026, the Hon’ble Supreme Court of India delivered a significant judgment regarding an appeal filed by the Punjab State Power Corporation Limited (PSPCL) and the Punjab State Load Despatch Centre (PSLDC). The ruling overturns the earlier decision made by the Appellate Tribunal for Electricity on March 18, 2025, effectively restoring the initial order passed by the Punjab State Electricity Regulatory Commission.
Financial and Operational Implications
The Supreme Court has upheld the penalty imposed on TSPL due to misdeclaration of power availability during January 2017, in accordance with the Grid Code. As a direct result of this judicial mandate, TSPL is obligated to settle a liability of approximately ₹127 crore. In addition to this principal amount, the company is required to cover the applicable Late Payment Surcharge due to PSPCL.
Background on the Dispute
The legal proceedings centered on operational declarations and compliance with grid-related regulations. By restoring the regulatory commission’s order, the Supreme Court has finalized the dispute in favor of the state power entity. Vedanta Limited has formally acknowledged this development following the receipt of the disclosure from its power subsidiary.
Source: BSE
