In Brief
Adani Power (Mundra) Limited set up a 4,620 MW power station and supplied 1,424 MW to Haryana utilities under a 2008 Power Purchase Agreement. A dispute arose over whether a 2013 policy allowing Inter Plant Transfer (IPT) of coal between Adani's plants constituted a 'Change in Law' event entitling the power company to compensation. The Supreme Court held that the IPT policy by Coal India Limited—a Government instrumentality—does amount to 'Change in Law' within the contract's definition. The Court partially allowed the appeal, setting aside APTEL's contrary finding, and remitted the matter to CERC to calculate and pass on transportation cost savings to distribution companies and consumers within six months.
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