Petition of the PPA executed between Adani Solar Energy Jaisalmer One Private Limited and Solar Energy Corporation of India Ltd – EQ

Summary:

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### 1. Procedural Timeline & Current Status

The CERC hearing on April 7, 2026, addressed the following procedural matters:

| **Action Item** | **Responsible Party** | **Deadline** |
| :— | :— | :— |
| Filing of replies in Petition Nos. 933/MP/2025 & 952/MP/2025 | SECI | Within 1 week (by ~April 14, 2026) |
| Filing of rejoinders in the same petitions | Adani entities | Within 3 weeks of reply (by ~May 5, 2026) |
| Final hearing on all three petitions | CERC | June 23, 2026 |

**Status per CERC hearing:**
– Petition No. 759/MP/2025: Pleadings **complete**; ready for final arguments.
– Petition Nos. 933/MP/2025 & 952/MP/2025: SECI replies **pending**; no final arguments yet.

### 2. Legal & Contractual Context (Articles 12 & 16)

Although the full PPA text is not public, standard renewable energy PPAs in India assign specific functions to Articles 12 and 16:

– **Article 12 (Force Majeure / Change in Law):** Typically addresses unforeseeable events (natural disasters, regulatory changes, policy shifts) that affect project viability. Disputes often arise over whether a specific event qualifies as “Change in Law” (e.g., imposition of safeguard duties, GST changes, ALMM requirements, or transmission charges) and how compensation is calculated.

– **Article 16 (Termination / Default):** Governs conditions for termination of the PPA, including payment defaults, performance failures, and dispute resolution mechanisms. Disputes under Article 16 often involve allegations of default by either party (e.g., SECI delaying payment or Adani delaying commissioning) and the calculation of termination payments.

**Business Implication:** These petitions likely involve significant financial claims. If Adani is seeking compensation under “Change in Law,” the amount could run into **tens or hundreds of crores of rupees**, depending on the specific regulatory changes cited (e.g., customs duty on solar cells, GST on renewable components, or interstate transmission system charges).

### 3. Business Analysis: Implications for Stakeholders

**For SECI & Government Agencies:**
– This is not an isolated case. SECI has faced multiple “Change in Law” claims from various developers (including ReNew, Greenko, and others) following policy shifts like the **Basic Customs Duty (BCD) imposition in 2022** and the **ALMM reinstatement** .
– A ruling against SECI could set a precedent, potentially exposing SECI to significant compensation payouts across its entire PPA portfolio. Conversely, a ruling in SECI’s favor would strengthen its position to deny claims based on “anticipated” policy changes.

**For Adani Group:**
– The three projects (one pure solar, two hybrid) represent a substantial investment in Jaisalmer. A favorable ruling would provide cash flow relief and improve project returns.
– The delay in SECI’s replies suggests either complexity in the factual matrix or strategic positioning by SECI to delay resolution (which could impact Adani’s working capital if payments are stuck).

**For the Renewable Energy Sector:**
– The interpretation of “Change in Law” remains a **highly contested area** in India’s renewable sector. Key questions include:
– Does a change in law that *reduces* project costs (e.g., lower module prices) require a downward tariff adjustment? (SECI has argued this in other cases)
– Are “anticipatory” actions (e.g., knowing a duty may be imposed but signing a PPA anyway) excluded from compensation?
– The CERC’s ruling in this case (expected in late 2026 or 2027) will provide clarity on these questions.

**For Investors / Lenders:**
– PPA disputes with SECI introduce **counterparty risk** for lenders to Adani’s projects. However, the CERC has a reasonably strong track record of protecting contractual sanctity in PPAs.
– The procedural timeline suggests a **final order may not be issued before Q1 2027**. Investors should monitor the June 23, 2026 hearing for any indications of the Commission’s preliminary views.

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