If both Seller (Developer) and Buyer(Discom) mutually agree without any coercion (*), Then CERC shall

allow. Let the business decide what is best for them. If Discom is not allowed to pass the increased tariff
to consumers by SERC than Discom will not accept.

As far as consumers are concerned they are/were not part of this agreement (PPA). Imagine if the Coal
price in Indonesia would have been high at the time of bidding than the PPA would have been signed at
higher price and consumer would have paid the same. Consumers had no agreement or control over PPA.

If buyer and seller cannot reach an agreement then do what the PPA say, i.e. do not allow the buyer to
increase the tariff. If Buyer submit his incapacity or do not perform as per agreement, look into the
termination clause and apply the applicable damages allowed under the contract.

In next step take over the plant (I don’t know who has the power to take over the plant, if not lenders
then shall go to NCLT) and bid the plant (SPV). The bidding of the plant shall be again a tariff based
competitive bidding (difference here is that plant is ready). The new bidder shall bear the outstanding
payment to lenders, and other creditors and shall take full responsibility to any existing obligations
towards lenders. In this way the new bidder will acquire plant at lower cost (i.e. total cost minus capital
infuse by original developer). With this approach whatever tariff the new bidder quotes, it will be lower
than the tariff what original developer might quote if allowed to increase the tariff with new coal price.

Also, with this approach original developer will stop his recurring loss and make loss of just original capital
infused for project development. (Remember tata and adani wanted to sale their stake at Re 1).

Consumer will have to bear the increased cost but something less, but this prevent creation of another
NPA (which if occur will anyway will be pubic loss), plus original developer will stop his recurring loss and
incur damages as per contract and law, plus consumer will keep getting power supply.

Just an idea based on what I understand is fair and reasonable from contractual, legal and public interest.
May be my assumptions are wrong or someone else here has better idea.