Supreme Court Allows BSES Yamuna, BSES Rajdhani To Recover Regulatory Dues of Rs 21,413 Crore

Mumbai, August 8, 2025: Reliance Infrastructure Limited has announced that two of its main subsidiaries, BSES Yamuna Power Limited and BSES Rajdhani Power Limited, have been given approval to recover a large sum of money. The companies can now get back about ₹21,413 crore over a four-year period, starting from April 1, 2024. This follows a major court ruling that has set new rules for how power tariffs are decided.

Reliance Infrastructure Limited is a major Indian company involved in various infrastructure projects. Its operations are spread across different sectors, including power distribution, roads, metro rail, defence, and engineering and construction services. The company’s headquarters are located in Mumbai, Maharashtra. Its shares are listed on the NSE with the ticker RELINFRA and on the BSE with the ticker 500390.

Following the announcement, the shares of the company increased by 0.85%, or ₹2.40, and were trading at ₹283.70, as of 11:50 AM today.

What Does This Mean For The Investors?

• Big Financial Win:
  Reliance Infra’s subsidiaries are now set to recover ₹21,413 crore from past dues, which is a major financial win.
• Payment Timeline Fixed:
  The recovery will take place gradually over four years, from April 2024 to March 2028.
• Steady Cash Flow Ahead:
  This ensures a steady cash flow for the company, improving its financial stability.
• Positive for Investors:
  Investors may benefit as the company clears old debts and strengthens its balance sheet.
• Legal Clarity Achieved:
  The Supreme Court decision brings long-awaited legal clarity, boosting investor confidence.
• Better Regulation Now:
  Strong regulatory oversight is now in place to prevent similar payment disputes in the future.

What are Regulatory Assets?

Regulatory assets are essentially money that a power company is owed for services it has already provided. This happens when the government or a regulator sets a tariff (the price of electricity) that is lower than the actual cost of providing power. To avoid a sudden, large increase in electricity bills for consumers, this shortfall is recorded as a “regulatory asset,” with the understanding that the company will be allowed to recover it later. This new ruling allows the BSES companies to finally recover these long-pending dues.

Court-Mandated Recovery Framework

The ruling resolves a long-standing dispute that began in 2014 over non-cost reflective tariffs and the prolonged continuation of regulatory assets without liquidation. The decision establishes:

How Will This Impact Reliance Infrastructure’s Future?

The approval to recover ₹21,413 crore in regulatory assets over four years is likely to have a positive impact on Reliance Infrastructure’s future. The phased recovery will improve the cash flow of its subsidiaries, making the company financially stronger and more stable. With these funds, Reliance Infra can reduce debt, invest in new infrastructure projects, and improve overall performance. The legal clarity also reduces uncertainty, which can attract more investors and help improve the company’s valuation. Additionally, the new regulatory framework ensures better control and transparency in the power sector, reducing the risk of such issues happening again. Overall, this ruling sets the stage for long-term growth and financial improvement for the company.

REF: https://nsearchives.nseindia.com/corporate/RELINFRA_08082025102947_Rinframediarelease08082025.pdf

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