Supreme Court Rules In Favour Of Adani Power In Change In Law Compensation Case

The Supreme Court has upheld the Appellate Tribunal for Electricity’s order allowing Adani Power Rajasthan Ltd to claim compensation under the “Change in Law” clause of its Power Purchase Agreement with Jaipur Vidyut Vitran Nigam Ltd.

A bench of Justices MM Sundresh and Rajesh Bindal dismissed JVVNL’s appeal against the APTEL decision. The dispute related to a PPA signed for the supply of 1,200 MW of power at a fixed tariff.

Adani Power had sought compensation under the “Change in Law” provision following Coal India Ltd.'s notification dated Dec. 19, 2017. The notification introduced a levy of Rs 50 per tonne as Evacuation Facility Charges, leading to increased operational costs.

The apex court affirmed that power generators are entitled to claim compensation and Late Payment Surcharge-based carrying costs under PPAs for escalations caused by regulatory changes.