In Brief
In this energy law dispute, the Supreme Court examined whether a coal-fired power project that bid with imported coal as primary fuel but included domestic coal as a fallback option could claim tariff relief under change-in-law provisions of its Power Purchase Agreement (PPA). The Court held that a 2013 change in India's coal allocation policy did constitute 'change in law' under the PPA and entitled the developer to relief—but only to the extent of actual coal supply shortfall. However, the Court rejected the developer's broader claim to apply lower tariff escalation rates for domestic coal, as the bid was fundamentally premised on imported coal supply. The procurer could not derive advantage from both fuel types simultaneously. The Court upheld concurrent findings of regulatory authorities and partly allowed the appeal."
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