S.NAGAMUTHU
E. I. D. Parry (I) Ltd, Chennai – Appellant
Versus
State of Tamil Nadu Rep by Principal Secretary to Government, Chennai – Respondent
1. The petitioners in these writ petitions are all Sugar Mills in the State of Tamil Nadu who have set up Co-generation plants to generate electricity and to supply the surplus electricity to the Tamil Nadu Electricity Board as per the agreements entered into with the Tamil Nadu Electricity Board in accordance with the provisions of the Electricity (Supply) Act of 1948. The main dispute in all these writ petitions is in respect of the fixation of price for the electricity supplied by these sugar mills to the Tamil Nadu Electricity Board.
2. Since common issues are involved in these writ petitions, they were all heard together and disposed of by means of this common order.
3. These writ petitions have come to be filed in the following background:-
Prior to 1991, private sector entrepreneurs cannot set up thermal projects, coal/lignite or gas based hydel projects and wind/solar energy projects of any size. However, the Electricity (Supply) Act, 1948 was so amended in 1991 by which private sector entrepreneurs were allowed to set up enterprises, either as Licensees, or as generating companies. Now, licenses under Section 3 of the Indian Electricity Act can be issued by the S
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