Indian Supreme Court deals a blow to Adani
IN A finding which has seen Adani's share price drop, the Supreme Court of India ruled the company cannot charge its energy customers more to cover a rise in the cost of imported coal.
The ruling on Tuesday came after lengthy legal proceedings which began after Indonesia established new benchmark coal prices in 2010, meaning coal would cost more to be imported to India.
While the ruling applied to existing purchase agreements with coal suppliers, predominantly Indonesia, it's unknown whether it will impact Adani's operations in Australia.
Shares for Adani Power Limited, the Adani Group subsidiary energy provider in India, were trading at 44.25 rupees (AU$0.9) on Monday, but dropped to 32.90 rupees by the end of trading on Friday.
Adani Enterprises, the subsidiary connected with the Carmichael Coal project, traded on Monday for 120.10 rupees ($AU2.46) a share, but has also dropped, reaching 116.85 by the end of Friday.