Judgment in Pet.68.2002 - GERC

Petn.No.68/2002M/s.Searchchem’s own units located at Vapi and Ankleshwar, was grantedsubject to the conditions mentioned therein. As per the provisions of ConditionNo.1, erstwhile GEB was allowed to bill as per the existing Contract Demand of25000 KVA, where as the concerned industry was allowed to pay as per thereduced contract demand of 6250 KVA i.e. 25%. It was clarified in the said letterdated 2.7.1998 that this ad-hoc arrangement shall come into force w.e.f. 22.6.1998and remain in force till either the recipient company or supplying companycontinues to hold 40% of issued share capital in the other company. As decidedby Government, at relevant point of time, this was an absolutely stop-gap ad-hocarrangement to take care of the long pending demand of industry and subject tothe adjustments as per the provisions of final policy. This decision of theGovernment has also been reflected in para 10 of the Captive Power Policyannounced vide Government GR dated 9.11.1998. The same has been repeated inthe letter dt.28.10.1999, from Joint Secretary to Government, Energy &Petrochemicals Department addressed to Member (Finance) erstwhile GEB. Asper the provisions of final policy for captive power, as contained under para 8 ofGR dated 9.11.1998, the industries on commissioning of Captive Power Plants,require to be allowed to reduce their existing contract demand up to a level of25% of their original Contract Demand. The reduction in Contract Demandallowed to the unit on ad-hoc basis (i.e. upto 25%) is exactly in line of thisprovision. “As per the provisions of Para 10 of the said GR dated 9.11.1998, thead-hoc arrangement sanctioned by Government vide letter dated 2.7.1998 has tobe regularized as per the provisions of the Captive Power Policy-1998 w.e.f.22.6.1998 i.e. from the date of commencement of the ad-hoc arrangement grantedearlier”.[16] In view of letter dt.28.10.1999 and in view of Affidavit filed by the Governmentof Gujarat on 6.9.2006, the opponents have to take appropriate action in thematter of reduction of contract demand. It is clear from the above letter that theState Government had passed orders on 22.6.1998 to allow reduction in contractPage 16 of 17