CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI Petition No: 71/MP/2023 Coram:

Shri Jishnu Barua, Chairperson Shri Ramesh Babu V., Member Shri Harish Dudani, Member Shri Ravinder Singh Dhillon, Member Date of Order: 17^th January, 2026 In the matter of Petition under Section 79(1)(f) of the Electricity Act, 2003, seeking relief on account of Force Majeure and Change in Law events under the Power Purchase Agreements dated 22.12.2021 and 24.12.2021 executed between the Petitioner and Respondent No. 1 and Respondent No. 2, respectively.

And In the matter of MB Power (Madhya Pradesh) Limited, Laharpur, Jaithari, Anuppur, Madhya Pradesh – 484330 …Petitioner Vs.

1. PTC India Limited, 2^nd Floor, NBCC Tower, 15 Bhikaji Cama Place, New Delhi-110066

2. Torrent Power Limited, Samanvay, 600 Tapovan, Ambawadi, Ahmedabad-380015 Gujarat …Respondents Parties Present:

Shri Amit Kapur, Advocate, MBPMPL Shri Akshat Jain, Advocate, MBPMPL Shri Shikhar Verma, Advocate, MBPMPL Shri Abhishek Gupta, MBPMPL Shri Shubham Batia, MBPMPL Shri Ravi Kishore, Advocate, PTCIL Shri Singh, Advocate, PTCIL Ms. Deepa Chawan, Senior Advocate, TPL Ms. Swapna Seshadri, Advocate, TPL Ms. Reshamarani, Advocate, TPL Ms. Aishwarya Subramani, Advocate, TPL

ORDER

The Petitioner, MB Power (Madhya Pradesh) Limited (‘MBPMPL’), a generating company, has developed a 1200 MW (2x600 MW) coal-based thermal power project in District Anuppur, Madhya Pradesh (the ‘Project’). In light of the guidelines issued by the Ministry of Power dated 30.3.2016, Respondent No. 2/ Torrent Power Limited (‘TPL’) floated a tender on 8.12.2021 for the procurement of power for short-term (i.e., for the period from 1.4.2022 to 30.9.2022) through a tariff-based competitive bidding process. Respondent No. 1/ PTC participated in the bid on behalf of the Petitioner, emerged as a successful bidder and was issued a Letter of Award (LoA) on 22.12.2021 for the supply of 50 MW power to TPL. Eventually, on 22.12.2021, Respondent No. 1/ PTC India Limited (‘PTC’) entered into a Power Purchase Agreement with TPL (‘PTC PPA’) for the supply of the 50 MW power to TPL from the Project for the period from 1.4.2022 to 30.9.2022. Subsequently, on 24.12.2021, the Petitioner entered into a Power Purchase Agreement with PTC (‘MB Power PPA’) on a back-to-back basis for the supply of the 50 MW power to TPL through PTC from the Project. Unit-1 and Unit- 2 of the Project achieved Commercial Operation Date (‘COD’) on 20.5.2015 and 7.4.2016, respectively. The Petitioner is seeking discharge from the MB Power PPA dated 24.12.2021 on account of impossibility and frustration of the contract due to the force majeure events which have rendered supply under the PPA impossible. Further, the Petitioner has submitted that the MB Power PPA is not in conformity with the short-

term guidelines issued by the MoP. The Petitioner has made the following prayers:

“(a) Hold and declare that the Power Purchase Agreements dated 24.12.2021 executed between MB Power and PTC is not in conformity with the MoP Short-

Term Guidelines and GERC Guidelines;

(b) Declare and hold that MB Power PPA dated 24.12.2021 stands frustrated w.e.f. 31.03.2022, due to supervening impossibility on account of subsistence of Force Majeure Events;

(c) Hold and declare that CIL Circular dated 01.03.2022 issued pursuant to CCEA’s decision dated 26.02.2022 constitutes a Force Majeure event for MB Power in terms of Article 6 of the MB Power PPA to the extent that it has resulted in shortfall in availability of sufficient and compatible coal required to generate and supply the Contracted Capacity of 50 MW to PTC;

(d) Hold and declare that CIL Circular dated 01.03.2022 issued pursuant to CCEA’s decision dated 26.02.2022 constitutes a Change in Law event for MB Power in terms of Article 6 of the MB Power PPA read with Change in Law Rules 2021 to the extent of increase in the cost of procurement of coal;

(e) Declare that PTC is not entitled to seek any liquidated damages and/or replacement pow