Tata Power and Adaro International are currently locked in a legal dispute over a coal supply agreement, with both companies seeking compensation from each other. The Tata Group company shared an update on the case on Thursday evening.

What Happened: The conflict originates from a contract signed in August 2020 for the supply of high calorific coal for Tata Power’s Trombay plant, leading to both parties issuing notices to each other.

The Singapore-based Indonesian mining company, Adaro, accused Tata Power of contract breach and sought arbitration with a claim of $106 million (around ₹879.8 crore). Tata Power retaliated with a counterclaim of $229.94 million (around ₹1,908 crore) for non-supply of coal.

Despite the ongoing dispute, Tata Power confirmed that both parties have been in ‘serious discussions to amicably resolve the dispute’. However, they have also agreed to proceed with arbitration at the International Chambers of Commerce International Court of Arbitration (ICC ICA). The arbitration process is still in its early stages, with the constitution of the arbitral tribunal yet to take place.

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On Wednesday, Tata Power Renewable Energy, a subsidiary of Tata Power, secured a 400-megawatt hybrid project from the Maharashtra State Electricity Distribution Company Limited (MSEDCL), marking its most significant renewable energy project in Maharashtra to date.

In addition, Tata Power Renewable Energy and Tata Motors have signed a Memorandum of Understanding (MoU) to establish 200 fast-charging stations for electric commercial vehicles across major Indian cities.

Furthermore, Tata Power Company has initiated the production of solar cells at its 4.3 gigawatt plant in Tirunelveli, Tamil Nadu, the largest single-location solar cell and module manufacturing facility in the country.

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