P. Naveen Rao, J.

1. In all the writ petitions disposed of by this common order, petitioners own captive power generating plants. Petitioners challenge constitutional validity of Section 3-B of Andhra Pradesh Electricity Duty Act, 1939 (for short Act, 1939) as introduced vide amendment Act No. 14 of 2003. This provision vests power in the Government to impose duty at the rate of 0.25 paise per unit on consumption of electric energy by captive generating units.

2. All the petitioners are involved in industrial activity such as manufacture/production/storage etc., of various products that require high volume of uninterrupted electricity energy. They are enrolled as consumers with State Public Sector power Utilities (for short, Power Utilities). The Power Utilities classify consumers as Low Tension (LT) and High Tension (HT) consumers depending on the volume of electricity supplied. Petitioners are HT consumers. For the sake of convenience, the facts as narrated in W.P.No.6769 of 2004 are taken.

3. Petitioner is a company incorporated under the Companies Act and is engaged in manufacture of synthetic yarn at its factories at Sadshivpet, Medak District (forming part of State of Telangana) and Doddavarapadu in Ongole district (forming part of residuary State of Andhra Pradesh). On account of acute shortage of electricity energy, the power utilities resorted to imposing cut in power supply and such power cuts were more severe on industries. Certain time slots were earmarked in a day for enforcing power cuts. In addition to the fixed time schedule for power cuts, State power utilities also resorted to unscheduled power cuts. There were power holidays. The power cuts were more acute during summer months. Due to severe power cuts, the economic viability and competitiveness of the petitioner company was seriously affected. The petitioner had no option, but to look out for alternative source of electricity to run its units and make them economically viable.

4. By resolution dated 06.11.1996, Central Government laid down policy for establishment of co-generation power plants to improve energy efficiency in industries to optimum level and more beneficial utilization of fuel resources. In the meeting held on 16.10.1996 followed by another meeting on 03.12.1996, the Chief Ministers of all States adopted a Common Minimum Action Plan on power generation with specific reference to reducing the gap between the demand and supply in electric power and urgent necessity to reform and restructure the State Electricity Boards; and to encourage private sector participation in generation, transmission and distribution. The Central Government also urged the State Governments to evolve captive generation policy. The composite State of Andhra Pradesh also formulated policy to encourage industries to generate power for captive use.

5. In pursuant to the policy initiatives of the State and Central Governments, petitioner company installed four generating plants, which include two diesel generating plants within the premises of respective manufacturing units; Wind power project in Ramagiri, Ananthapuram, and Gas based power project at Y. Kothapalli of East Godavari District.

6. On account of incorporation of Section 3-B in A.P. Electricity Duty Act, 1939, impugned herein, for the first time electricity energy consumed by captive power generating unit for its own purpose is also subjected to levy of duty at the rate of 0.25 paise per unit. As a consequence to the amendment of Act, 1939, and introduction of Section 3-B impugned herein, the State Government amended the A.P. Electricity Duty Rules, 1939, defining ‘captive consumption’ and introduced the provision for recovery of the amounts due from the power generating units by the District Collectors as arrears of land revenue. In the above backdrop, petitioner sought for the following relief:

“To issue an appropriate writ, order or direction more particularly one in the nature of a mandamus or declaration (