Back
2015 Supreme(AP) 26
High Court of Judicature at Hyderabad
RAMESH RANGANATHAN, J.
Independent Gas based Power Producers Association, Represented by its Secretary & Authorised Representative B. Ramesh Babu – Petitioner
Versus
Union of India Represented by its Secretary & Others – Respondents
Writ Petition No. 39390 of 2012
Decided On : 28-01-2015
For the Petitioner:S. Niranjan Reddy, Advocate.
For the Respondents:Learned Assistant Solicitor General, P. Wilson, Learned Senior Counsel, R. Raghunandan, Learned Senior Counsel, O. Manohar Reddy, Advocates.
Headnote:
Electricity Act, 2003 -Constitution of India; in 2009 - Articles 14 and 19(1)(g) - Petition are to direct respondents to frame a comprehensive policy / bring a suitable legislation with regard to energy security of India and supply of natural gas NELP as per directions of Hon’ble Supreme Court in Reliance Natural Resources Ltd Reliance Industries Limited to direct respondents to modify EGoM decision so as to enable supply of gas to gas based power plants of members of petitioner on priority over other consumers of gas in KG basin at least till time LNG terminals are set up in east coast of country to enable supply of generated power to AP DISCOMS to further direct respondent to supply MMSCMD of Natural Gas from gas fields or from any other source in KG basin to aggrieved independent power producers members of petitioner as listed in Annexure to enable them to generate their respective power plants to their full capacity and supply power – Held, This Court respondents have not furnished any information regarding extent to which gas available in non basin is affected by portability factor - It is evident from records placed before this Court that MoPNG did not take note extent to which portability factor necessitated gas supplies being restricted only to end users located in proximity to source of supply resulting in their inability to maintain parity between power plants in north and west of country and power plants in east coast - Neither did MoPNG in its note refer to this disparity in imposing a pro-rata cut in supply of non-KG-D6 gas to power plants in North and West of India and in imposing a reverse cut in supply of KG-D6 gas to power plants in East Coast nor did EGoM consider this issue in its meeting held on - As information regarding portability factor was not even placed before it in meeting held - It is evident that EGoM was not apprised of extent to which portability factor affected non-KG-D6 gas supplies to power sector - Petition dismissed
The reliefs sought for in this Writ Petition are (i) to direct respondents 1 & 2 to frame a comprehensive policy / bring a suitable legislation with regard to energy security of India and supply of natural gas under NELP as per the directions of the Hon'ble Supreme Court in Reliance Natural Resources Ltd. v. Reliance Industries Limited, (2010) 7 SCC 1; (ii) to direct respondents 1 & 2 to modify the EGoM decision dated 24.02.2012 so as to enable supply of gas to gas based power plants of the members of petitioner on priority over other consumers of gas in the KG basin, at least till such time LNG terminals are set up in the east coast of the country, to enable supply of generated power to the AP DISCOMS; and (iii) to further direct the 1st respondent to supply 19.72 MMSCMD of Natural Gas from the KG-D6 gas fields, or from any other source in the KG basin, to the aggrieved independent power producers (members of the petitioner as listed in Annexure P-2), to enable them to generate their respective power plants to their full capacity and supply power to the AP DISCOMS.
When this Writ Petition was pending adjudication before this Court the Empowered Group of Ministers (“EGoM” for short) meetings took place on 17.07.2013 and 23.08.2013, and a policy decision was taken by the EGoM on 23.08.2013. Thereafter the petitioners filed an application seeking amendment of the second prayer in the Writ Petition.
The amended relief sought for is:-
"To direct respondents 1 & 2 to modify the EGoM decision dated 24.02.2012, and the consequent EGOM decision including those dated 17.07.2013 & 23.08.2013 so as to enable supply of gas to gas based power plants in KG basin of the members of Petitioner on priority over other consumers of Gas in KG basin at least till such time LNG terminals are set up in the east coast of the country to supply generated power to AP DISCOMS".
The first petitioner is a society, registered under the Societies Registration Act, 1860, established for promoting and safeguarding the common interests of gas based Independent Power Producers (“IPPs” for short) located in the KG basin in the State of Andhra Pradesh. The 2nd petitioner, M/s. GMR Vemagiri Power Generation Limited, is an IPP and the 3rd petitioner is the authorised signatory of the 2nd petitioner. The petitioners are aggrieved by the failure of respondents 1 and 2 in responding to their various representations for a fair and equitable distribution of gas to operate their power plants which has resulted not only in their assets, worth more than Rs.30,000 crores, being rendered idle but also in loss of generation of electricity.
Respondents 1 and 2 are responsible for allocation and supply of gas from the KG basin to various sectors/consumers like power, fertilisers, steel, domestic use etc. The 3rd respondent is the Government of A.P. Respondents 4 to 7 are the State owned distribution licencees in the State of A.P. (“DISCOMS” for short) which had signed long term Power Purchase Agreements (PPAs) with the members of the first petitioner association. The 8th respondent is the co-ordination committee formed by the Government of A.P to co-ordinate procurement of power by the State owned DISCOMS. The 9th respondent is the Chambers of Commerce, a society representing large, medium and small scale industries in the State of A.P. The 10th respondent is Nagarjuna Fertilisers and Chemicals Limited, a public limited company manufacturing fertilisers. The 11th respondent, a non-profit and non-trading company registered under the Companies Act, is an association of fertiliser manufacturing units.
The Government of India framed a policy, by its resolution dated 22.10.1991, to encourage participation of privately owned enterprises in the field of electricity generation, supply and distribution. While, conventionally, electricity is generated through hydro and thermal power plan
