The Electricity Board cannot withdraw promised concessions before the statutory period lapses, regardless of policy changes.

1.The A.P. State Electricity Board and its officers representing the Board preferred this appeal against the order of a learned single Judge of this High Court dated 23-10-1998 in W.P. No. 17129 of 1988 which was filed by the respondent herein under Art.226 of the Constitution of India praying to issue a writ of Mandamus declaring the action of the appellants in withdrawing 25% power rebate to the Mini Steel Plants (MSPs) by including them in the list of non - eligible industries as illegal, arbitrary, unjust and to further declare that the petitioner - industry is entitled for 25% power rebate till the completion of initial period of three (03) years as per the policy - decision of the Government of Andhra Pradesh.

2. The writ petitioner is a Mini Steel Plant (MSP) engaged in the manufacture of steel ingots, billets etc., and was registered as a small scale industry situated in Ranga Reddy District. The petitioner unit is a High Tension consumer with a CMD of 3250 KVA with a capacity of 100 MT per day. The petitioner - industry is a power intensive unit and requires considerable power. It was commissioned in the year 1985 and has gone into regular commercial production w.e.f. 1-2-1985. The Government of Andhra Pradesh from time to time announced certain incentives for new industries to ensure the rapid industrial growth including an incentive of 25% power rebate for the initial period of three (03) years. In pursuance of the incentives offered by the Government, the petitioner and other similar units have come into existence under small scale industries sector. The District Manager, District Industries Centre, Ranga Reddy District issued an eligibility certificate to the petitioner for claiming 25% rebate on power tariff for initial three years through his Certificate No. EC No. 2366 / F / 85, dated 21-3-1985. As per the said eligibility certificate the petitioner is entitled for 25% rebate from 1-2-1985 to 31-1-1988. Basing on the said certificate the 1st appellant - Electricity Board extended the benefit of 25% rebate w.e.f. 1-2-1985. The 1st appellant - Electricity Board issued an order in B.P. Ms. No. 946, dated 14-10-1987 amending B.P. Ms. No. 152 (Commercial), dated 13-2-1978 bringing the petitioner unit and other MSPs into the list of non - eligible industries for the rebate of 25% power consumed by the industry. The above amendment was given w.e.f. 15-10-1987. Accordingly in the last week of October 1987 the 1st appellant directed all its subordinates to discontinue the 25% power rebate to MSPs and on filing writ petitions by those MSPs the High Court directed the Electricity Board to continue that power rebate till completion of initial three years. The petitioner - industry was allowed to have the rebate of 25% till 31-1-1998 i.e., the date on which the initial three years' period was completed as per eligibility. But, the 2nd appellant issued Notice No. SC / O / OC / HT4 / OMAL / 2376, dated 3-11-1988 to the petitioner directing to pay a sum of Rs. 6,65,875-97 ps. within seven (07) days by stating that the 25% rebate was withdrawn to the petitioner w.e.f. 15-10-1987, in pursuance of the Memo issued by the 1st appellant, including the petitioner - industry in the list of 65 non - eligible industries. The petitioner being aggrieved by the said notice filed the writ petition for the reliefs mentioned above.

3. The petitioner contends that since the Government granted the rebate as a matter of policy, the Board has no power to withdraw the same unless and until the Government chooses to withdraw the rebate. The Government issued G.O.Ms. No. 379, Industries and Commerce