In Brief
Nabha Power Limited bid for a thermal power project under competitive tariff-based bidding rules. A Cabinet decision on 01.10.2009 modified the Mega Power Policy, announced via press release, removing the inter-state power requirement and replacing privatization with distribution reforms. Nabha claimed it factored in these benefits when bidding on 09.10.2009. The actual notification amending customs duty came on 11.12.2009, followed by the revised policy on 14.12.2009. The buyer (PSPCL) sought to reduce tariffs citing change in law post-bidding. The Supreme Court held that a press release announcing a Cabinet decision does not constitute 'law' under the contract unless formally notified. The legal regime altered only on 11.12.2009/14.12.2009, not 01.10.2009. Therefore, PSPCL was entitled to tariff reduction benefits from the change in law. The appeal was dismissed.
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