The Supreme Court of India has upheld Adani Power Rajasthan Ltd.’s (APRL) entitlement to compensation under the “Change in Law” clause of its Power Purchase Agreement (PPA) with Jaipur Vidyut Vitran Nigam Ltd. (JVVNL). This decision stems from a regulatory change introduced by Coal India Limited (CIL) on December 19, 2017, which imposed an additional ₹50 per tonne levy on coal, increasing APRL’s operational costs. The Court affirmed that such regulatory changes qualify as “Change in Law” events, entitling power generators to compensation to restore their original economic position. Additionally, APRL is entitled to receive Late Payment Surcharge (LPS) at the contracted rate (2% above the State Bank of India Base Rate) from the date of the levy notification. The Court dismissed JVVNL’s appeal, reinforcing the principle of restitution in contractual obligations.

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