IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANUBHA RAWAT CHOUDHARY, J.
Adhunik Power & Natural Resources Limited – Petitioner
Versus
Jharkhand State Electricity Regulatory Commission – Respondent
W.P. (C) Nos. 2723, 2765 of 2018
Decided On : 24-08-2018
Constitution of India, 1950 – Article 14 – Show Cause – Mandamus – Writ petitions have been filed for the reliefs to direct the Respondent No. 1/JSERC to approve the amended PPA – In the alternative, direct Respondent Nos. 3 and 4 to extend the deadline for submission of the approved PPA by the petitioner along with execution of Fuel Supply Agreement with regard to the Letter of Intent, till the amended PPA is approved by the Respondent No. 1/JSERC. – Direct Respondent Nos. 3 and 4 to sign/execute a provisional Fuel Supply Agreement with the petitioner, pending approval of the PPA by the Respondent No. 1 Commission. – Extend the deadline of 19.06.2018 for submission of the approved amended PPA by the petitioner and execution of Fuel Supply Agreement with regard to the Letter of Intent, till the pendency of the present petition – W.P. (C) prays for issuance of direction upon the Respondent-Jharkhand State Electricity Regulatory Commission to show cause as to what is the necessity of public hearing under the law, so far it relates to approval of Power Purchase Agreement between the Generating Company and Distribution Company is concerned, owing to which the process of execution of agreement, and the benefits/privilege arising out of such execution of agreement is being held up, concerning purchase of Coal – Consequent upon showing the cause, if any, and on being satisfied that there is legally/ technically no requirement of public hearing for giving approval to the Power Purchase Agreement, necessary directions be issued upon Jharkhand State Electricity Regulatory Commission to approve the draft Power Purchase Agreement submitted by the petitioner with the Respondent No. 1. – For issuance of an appropriate Orders, Directions directing the Respondent No. 3 to provisionally execute the Fuel Supply Agreement with the petitioner pending approval of the Power Purchase Agreement by the Respondent No. 1, Jharkhand State Electricity Regulatory Commission. – For issuance of direction upon the Respondent No. 3 and 4 to keep the last date for submission of approved Power Purchase Agreement with the Coal Company in abeyance, till the amended Power Purchase Agreement is duly approved by the Jharkhand State Electricity Regulatory Commission. – Held, Court is not inclined to issue any mandamus or direction upon the respondent Coal India Limited to execute fuel supply agreement with the petitioners or to declare the petitioners as successful bidders from their status as provisional successful bidders. – Admittedly the respondent Coal India Limited has not taken any final decision in this regard. – This is also apparent from the fact that with respect to Power Purchase Agreement with TANGEDCO which is involved in this case, the Central Electricity Regulatory Commission has been pleased to approve the amendments to the Power Purchase Agreement carried out in pursuance of SHAKTI Scheme vide order in Petition, which is admittedly prior to the extended date but the respondent Coal India Limited has not taken any final decision with respect to this also. – Court finds that as the respondent Coal India Ltd. has yet to take a decision in the matter in the changed circumstances which has taken place during the pendency of these writ petitions that the amended Power Purchase Agreement has now been approved. – Court is of the considered view that the final decision is required to be taken by the respondent Coal India Ltd. as expeditiously as possible, preferably within a period of four weeks from the date of receipt of a copy of this order, as much delay has already occurred as is apparent from the submissions of both the parties. – It is expected that the authorities of respondent Coal India Limited themselves will act fairly and reasonably so as to satisfy the mandate of Article 14 of the Constitution of India and with particular consideration of the fact that this court has already held that the petitioners were under legal disability in submitting the amended Power Purchase Agreements on account of the reasons beyond their control and one of the amended power purchase agreements (out of two) involved in WP (C) was already approved by the concerned regulatory commission much prior to 19.06.2018 but no final decision has been taken so far in connection with this also. – Writ Petitions Disposed of
1. Heard Mr. Sumit Gadodia and Mr. Nitin Pasari, counsel appearing on behalf of the petitioners.
2. Heard Mr. Anoop Kumar Mehta, counsel appearing on behalf of respondent Central Coalfields Ltd.
3. Heard Mr. Indrajit Sinha, counsel appearing on behalf of respondent no. 1.
4. Heard Mr. Prashant Kumar Singh, counsel appearing on behalf of respondent Union of India.
5. Heard Mr. Ajit Kumar, Sr. Advocate assisted by Mrs. Aprajita Bhardwaj, counsel appearing on behalf of respondent Jharkhand Bijli Vitran Nigam Ltd.
6. These writ petitions have been filed for the following reliefs:-
W.P. (C) No. 2723 of 2018
(a) To direct the Respondent No. 1/JSERC to approve the amended PPA dated 15.02.2018, before 19.06.2018 (Annexure-9)
(b) In the alternative, direct as follows:
(i) Direct Respondent Nos. 3 and 4 to extend the deadline of 19.06.2018, for submission of the approved PPA by the petitioner along with execution of Fuel Supply Agreement with regard to the Letter of Intent dated 21.12.2017, till the amended PPA dated 15.02.2018 (Annexure-8) is approved by the Respondent No. 1/JSERC.
(ii) Direct Respondent Nos. 3 and 4 to sign/execute a provisional Fuel Supply Agreement with the petitioner, pending approval of the PPA by the Respondent No. 1 Commission.
(c) Extend the deadline of 19.06.2018 for submission of the approved amended PPA by the petitioner and execution of Fuel Supply Agreement with regard to the Letter of Intent dated 21.12.2017, till the pendency of the present petition (Annexure-8).
W.P. (C) No. 2765 of 2018
(a) For issuance of direction upon the Respondent-Jharkhand State Electricity Regulatory Commission to show cause as to what is the necessity of public hearing under the law, so far it relates to approval of Power Purchase Agreement between the Generating Company and Distribution Company is concerned, owing to which the process of execution of agreement, and the benefits/privilege arising out of such execution of agreement is being held up, concerning purchase of Coal.
(b) Consequent upon showing the cause, if any, and on being satisfied that there is legally/ technically no requirement of public hearing for giving approval to the Power Purchase Agreement, necessary directions be issued upon Jharkhand State Electricity Regulatory Commission to approve the draft Power Purchase Agreement submitted by the petitioner with the Respondent No. 1.
(c) For issuance of an appropriate Orders, Directions directing the Respondent No. 3 to provisionally execute the Fuel Supply Agreement with the petitioner pending approval of the Power Purchase Agreement by the Respondent No. 1, Jharkhand State Electricity Regulatory Commission.
(d) For issuance of direction upon the Respondent No. 3 and 4 to keep the last date for submission of approved Power Purchase Agreement with the Coal Company in abeyance, till the amended Power Purchase Agreement is duly approved by the Jharkhand State Electricity Regulatory Commission.
7. Short facts of W.P. (C) No. 2723 of 2018
The petitioner has entered into a long term power purchase agreement (PPA) on 28.09.2012 for sale of power to be made available to the State from its coal based power plant for a period of 25 years from the date of commercial operation at the tariff to be determined by the appropriate commission for which appropriate steps were taken. In the meantime, Government of India, Ministry of Coal introduced a new mode of coal allocation policy for power sector in the year 2017 namely SHAKTI vide letter dated 22.05.2017 and SHAKTI scheme dated 16.08.2017 was issued by Coal India Ltd. wherein terms and conditions of auction of coal linkages of independent power producer was provided. The petitioner duly participated in the coal linkage allocation under the SHAKTI scheme and after being declared as provisional successful bidder the respondent Coal India Ltd. issued Letter of Intent dated 21.12.2017 declaring the petitioner as provisional successful bidder.
Pursuant to issuance of letter of intent, the p
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