CERC Reclaims the Field: Medium-Term PPA Disputes and the KSK Mahanadi Case
Normally, medium-term power contracts are assumed to provide predictable revenue without the rigidity of long-term regulated supply.
But the KSK Mahanadi dispute with Andhra Pradesh Discoms shows how fragile that assumption can be.
✅ CERC’s order dated 28 January 2026 consolidates multiple petitions into a single adjudicatory track.
The dispute relates to a 400 MW Case-I PPA signed in 2012 and amended thereafter.
⚠️ KSK alleges systematic invoice deductions, tariff non-payment, and lapses in payment security.
Claims across billing periods reportedly run into several hundred crores.
Andhra Pradesh’s bifurcation added complexity in allocation and contractual amendments.
🔎 The matter spent years locked in jurisdictional battles across courts and appellate forums.
CERC has now reiterated its authority over composite-scheme PPA disputes.
A contested termination notice issued in December 2020 deepens contractual uncertainty.
❌ Medium-term PPAs often lack the enforcement depth of long-term arrangements, making payment stress more disruptive.
Consolidation signals that termination and tariff performance cannot be separated cleanly.
With the dispute back before the regulator, the stakes remain substantial.
Will this case influence how termination leverage is used in future PPA conflicts? And what does it reveal about the real limits of payment security in medium-term contracts?
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