
Summary: The Supreme Court’s ruling in Nabha Power v. PSPCL makes a clear distinction: government press releases and policy clarifications, even if they affect project economics, do not qualify as “Change in Law” under Power Purchase Agreements. Only formal legal instruments like statutes, rules, regulations, or gazette notifications carry the weight needed to trigger compensation. This brings greater certainty for regulators and distribution companies, but it also means developers must be more cautious when bidding, since informal policy signals can no longer be relied upon for relief. The decision ultimately reinforces contractual discipline while reminding the sector that policy announcements must be formally notified to have legal effect.
Continue Reading When Policy Isn’t Law: Why Press Releases Don’t Trigger “Change in Law” Compensation






