In Brief
GMR Warora Energy Limited and several other power generators challenged orders denying or granting relief under 'Change in Law' provisions in Power Purchase Agreements after changes in coal policies and levies. The Supreme Court held that 'Change in Law' encompasses orders by any Indian Governmental Instrumentality (including Coal India, Railways, State Governments) issued after the cut-off date, and generators are entitled to restitutionary compensation to restore their economic position. Relief must be computed on actuals (100% of normative coal requirement), with carrying cost at compound interest (2% above SBAR) from the change date. All appeals were dismissed, affirming concurrent findings that Busy Season Surcharge, Development Surcharge, forest tax, and other statutory levies constitute Change in Law events.
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