India, Aug. 22 -- In a relief for Punjab State Power Corporation Limited (PSPCL), the Supreme Court (SC) has ruled in its favour in a high-stakes, decade-long legal battle with private thermal power producers - Nabha Power Limited (NPL) and Talwandi Sabo Power Limited (TSPL). The verdict has saved the PSPCL and Punjab power consumers from a financial liability of nearly Rs.5,000 crore, claimed by the independent power producers (IPPs) under the guise of fiscal incentives.

The judgment was pronounced on August 19 by the division bench comprising chief justice of India BR Gavai and justice AG Masih.

The case revolved around the eligibility of the two private thermal power plants for "deemed export benefits" under the Foreign Trade Policy ...