Reliance Infrastructure Subsidiaries to Recover ₹21,413 Crore Regulatory Assets Over Four Years After Supreme Court Ruling

Reliance Infrastructure's subsidiaries, BSES Yamuna Power and BSES Rajdhani Power, have been authorized by the Supreme Court of India to recover approximately ₹21,413 crore in regulatory assets over the next four years, starting April 2024. This follows a landmark August 2025 judgment addressing issues related to non-cost reflective tariffs, unlawful creation, and delayed liquidation of regulatory assets. The court established ten guiding principles and nine binding directions for electricity regulators and the Appellate Tribunal for Electricity (APTEL), including capping regulatory assets at 3% of the Aggregate Revenue Requirement (ARR) and mandating their clearance within specified timelines. The Delhi Electricity Regulatory Commission has approved the recovery plan, which will likely result in higher electricity tariffs for consumers in New Delhi. APTEL is tasked with monitoring compliance and ensuring transparency in the recovery process, while state regulators must conduct audits and provide roadmaps for asset liquidation. This ruling also reinforces that tariffs should reflect actual costs with regulatory assets created only in exceptional cases.