G.S.SINGHVI, J.

1. hether allocation made in favour of the petitioner by the Haryana State Energy Development Agency (HAREDA) for development of small Hydro Power Projects on canal drops of Dadupur Western Yamuna Canal (Lower) on Build, Operate and Own basis could be cancelled without giving opportunity of hearing and whether the said site could be allocated to Haryana Power Generation Company Ltd. (respondent No. 3) even though it was not entitled to submit proposal in terms of the advertisement issued by HAREDA are the questions which arise for determination in this petition filed under Article 226 of the Constitution of India.The background

2. For the purpose of seeking financial assistance from the World Bank to support its efforts to reform and develop the power sector, the Government of Haryana took the following steps :(i) In the year 1997, the State Government introduced the Haryana State Electricity Reform Bill which was passed by the Legislature on 22-7-1997 leading to the bifurcation of the Haryana State Electricity Board into four Corporations, two of which were to exclusively deal with the generation and transmission of the electricity.(ii) In May, 1997, HAREDA