In Brief
CLP India challenged a power purchase agreement with Gujarat Urja Vikas Nigam, arguing its gas-based unit should not be bound by tariff notifications applicable to naphtha-based units, and claiming interest on a deemed loan was payable beyond the agreed period. The Supreme Court upheld lower court findings, holding that the unit's actual fuel mix does not override the PPA's express reference to Central Government notifications for naphtha-based units. The Court also ruled that the change-of-law clause binds both parties to tariff amendments, including incentive provisions, and that interest is payable only for the period specified in the contract. The appeal was dismissed.
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