In a significant ruling on power sector disputes, the Supreme Court has dismissed appeals filed by Haryana Power Purchase Centre (HPPC) and others against orders of the Appellate Tribunal for Electricity (APTEL) and the Central Electricity Regulatory Commission (CERC). The appeals revolved around coal allocation and additional tariff claims by GMR Kamalanga Energy Limited (GKEL).
Background
The dispute arose from long-term power purchase agreements (PPAs) signed between GKEL and multiple state utilities—Haryana, Odisha (GRIDCO), and Bihar. GKEL’s power project in Odisha was originally backed by firm coal linkages and tapering linkages granted by the Government of India. However, shortfalls in coal supply forced GKEL to procure costlier imported and market coal, leading to supplementary bills raised against Haryana utilities for “Change in Law” compensation.
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While CERC allowed GKEL’s claims and directed payments, Haryana Utilities contested, arguing that only GRIDCO and Bihar should bear tapering coal costs. APTEL upheld CERC’s order, prompting the present appeal before the Supreme Court.
Court’s Observations
Chief Justice B.R. Gavai, delivering the judgment, emphasized that both CERC and APTEL had given concurrent findings after evaluating the evidence.
The Court noted: “When expert bodies like CERC and APTEL have taken a consistent view, we must be slow in interfering unless their decision is arbitrary or illegal.”
The bench underlined that coal allocations were meant for the entire GKEL project and not tied to individual state PPAs. Referring to official communications from Mahanadi Coalfields Limited, the Court observed that coal was released considering total contracted capacity, not on a state-specific basis.
Further, the Court disapproved Haryana’s attempt to reopen settled issues. “Haryana Utilities cannot selectively interpret earlier orders. The apportionment of coal on pro-rata basis to all three beneficiaries is fair and equitable,” the bench said.
Decision
The Supreme Court dismissed Haryana Utilities’ appeal, confirming that coal supplies—whether from firm linkage, tapering, or alternative sources—must be apportioned pro-rata among Haryana, Bihar, and Odisha. The utilities are now bound to clear GKEL’s supplementary bills with applicable surcharges as per the original PPAs.
Case Title: Haryana Power Purchase Centre (HPPC) & Ors. v. GMR Kamalanga Energy Ltd. & Ors.
Case Number: Civil Appeal No. 1929 of 2020 & connected appeals
Judgment Date: 2025 (Reported as 2025 INSC 1079)
