R.BANUMATHI,J.

1. Aggrieved by the order of the learned single Judge in W.P.No.15702 of 1997 dated 5.1.2001 in allowing the Writ Petition holding that the Writ Petitioner – M/s.Sumangala Steels Limited is entitled to the benefits of subsidy for unexpired period ending by 30.9.1992. in W.A.No.857 of 2001, the Government of Pondicherry preferred appeal.

2. Being aggrieved by the very same order in W.P.No.15702 of 1997 declining to issue writ of mandamus to sanction all the benefits conferred on new industries in Letter of Government of Pondicherry No.16(23)/82-SSI(II)/SSI(P) dated 9.12.1985 and also declining to hold that the Petitioner is entitled to full five years of tariff concession within the parameters of G.O.Ms.No.9/91-Industries Development Department (dated 11.2.1991), M/s.Sumangala Steels Limited has preferred W.A.No.522 of 2001. Both the Writ Appeals arise out of the same order and since the points for determination are one and the same, both the Writ Appeals were heard together and shall stand disposed by this common judgment. For convenience, the parties are referred to in their rank in W.P.No.15702 of 1997.

3. The Petitioner is a company incorporated under the Companies Act. It has been carrying on the business of producing steel in its premises in the PIPDIC Industrial Estate at Mettupalayam in Pondicherry from September 1987 and then having a capacity of 10,000 tonnes per annum (in short, "TPA"). The Petitioner filed W.P.No.15702 of 1997 seeking for a writ of mandamus to sanction all the benefits conferred on new industries in backward areas as per the Government of Pondicherrys letter No.16(23)/82-SSI(II)/SSI(P) dated 9.12.1985 to the Petitioners new unit with an installed capacity of 1,40,000 TPA on the following averments:

There was a scheme brought into effect by Government of Pondicherry following letter No.16(23)/82-SSI(II)/SSI(P) dated 9.12.1985 and as per the terms of which, the industries set up in backward areas were eligible for various benefits such as power subsidy, sales tax exemption and cash subsidy to the tune of 15 percent of capital investment. The power subsidy to Industries, both H.T. and L.T. was a period of five years from the date of commencement of production on a tapering basis i.e., 33 1/3 % for the first three years, 20% for the fourth year and 10% for the fifth year. The Petitioner was sanctioned 5 MVA power in September 1985 and commenced commercial production from September 1987 and it enjoyed the benefits under the subsidy scheme dated 9.12.1985.

4. According to the Petitioner Company, it has proposed a second unit capacity of 1,40,000 tonnes of steel billets per annum. Further case of Petitioner Company is that on 30.6.1987, with a view to instal fresh capacity on a large scale, obtained feasibility certificate from the Electricity Department, Pondicherry Government (ED) for supply of additional power of 20.05 MVA. The Government of India issued an industrial licence to the Petitioner Company. On 17.1.1990, Government of India gave approval to the Petitioner Company for installing fresh capacity of 1,40,000 TPA raising the total capacity of the Petitioners unit to 1,50,000 TPA, which was in pursuance of minimum economic scale of operation contained in Press Note No.18(10/46/88-LP) dated 13.7.1989 issued by the Government of India. According to the Petitioner, it has obtained the necessary panchayat licence for increase of the power load to 25 MVA and placed firm orders for a substantial part of the plant and machinery for the new unit and also constructed a new factory in the additional area of 3 acres acquired for the new and larger unit. Further case of the Petitioner Company is that it had purchased a new 2x12 Metric Tonne furnaces, continuous casting machine, heavy cranes, etc., and installed them. On 11.2.1991, Government of Pondicherry (Industries) reviewed the existing power subsidy scheme dated 9.12.1985 and issued fresh notification G.O.Ms.No.9/91-IND date