The Supreme Court pronounced its judgment on August 6, 2025, disposing of writ petitions and civil appeals filed by BSES Yamuna Power Limited and BSES Rajdhani Power Limited, material subsidiaries of Reliance Infrastructure Limited. The court established clear guidelines for the recovery of regulatory assets worth approximately ₹21,413 crore over a 4-year period.
The court outlined 10 sutras examining regulatory asset issues and issued 9 clear directions to the Electricity Regulatory Commissions and APTEL. Key principles include cost-reflective tariffs as the first principle, regulatory assets not exceeding a reasonable percentage based on 3% of ARR as the guiding principle, and mandatory liquidation within 3 years for new regulatory assets.
The existing regulatory assets must be liquidated within a maximum of 4 years starting from April 1, 2024, following Rule 23 guidelines. Delhi Electricity Regulatory Commission recognised the regulatory assets, and ERCs must provide a trajectory and roadmap for liquidation, including carrying costs provision, whilst undertaking a strict audit of circumstances preventing recovery.
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APTEL shall register a suo moto petition under Section 121 of the Electricity Act to monitor the implementation of liquidation directions until the period concludes. The tribunal must invoke powers to issue orders, instructions, or directions to ERCs for regulatory asset performance duties as enunciated in the judgment.
Reliance Infrastructure operates through Special Purpose Vehicles in power, roads, metro rail infrastructure, and defence sectors. The company provides Engineering and Construction services whilst maintaining a leading position in power distribution through BSES subsidiaries, serving Delhi's electricity requirements with significant regulatory asset positions.
On August 8, 2025, Reliance Infrastructure share price opened at ₹277.25 on NSE, below the previous close of ₹281.30. During the day, it surged to ₹291.25 and dipped to ₹270.00. The stock is trading at ₹283.80 as of 12:02 PM. The stock registered a moderate gain of 0.89%.
Over the past week, it has declined by 4.17%, over the past month, it has declined by 24.87%, and over the past 3 months, it has moved up by 21.49%.
The Supreme Court's August 6, 2025, judgement, enabling BSES Yamuna and Rajdhani Power to recover ₹21,413 crore regulatory assets over 4 years, represents significant regulatory clarity for Reliance Infrastructure's subsidiaries. With clear guidelines on cost-reflective tariffs, 3% ARR limits, and APTEL monitoring through suo moto petition, the structured recovery framework supports sustainable power distribution operations whilst protecting stakeholder interests.
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Published on: Aug 8, 2025, 2:24 PM IST
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