ASSOCIATED CEMENT COMPANIES LIMITED Vs. CHIEF ENGINEER

JUDGEMENT

(1.) THE Chief Engineer, Tamil Nadu State Electricity Board (hereinafter referred to as 'Electricity Board') served the impugned order dated 14th July, 2006, on the appellant, M/s. Associated Cement Companies Ltd. (hereinafter referred to as 'ACC') bringing down its allotment of fly ash from 80% to 40% in Unit -II of Mettur Thermal Power Station (hereinafter referred to as 'MTPS') on the ground that ACC failed to reach its target of lifting 80% of fly ash. Learned single Judge having upheld the order, the present appeal has been preferred.

(2.) THE Ministry of Environment and Forest, Government of India, by its notification dated 14th Sept., 1999, directed all concerns generating fly ash, such as coal and lignite based thermal power plants, to make available fly ash without any cost for atleast 10years to manufacturers of ash based products, such as cement, concrete blocks, bricks, etc. Pursuant to the said direction, Electricity Board reached a Memorandum of Understanding (hereinafter referred to as 'MoU') with ACC on 5th Dec., 2001, as per which 100% fly ash generated has to be collected by ACC and out of the same 20% of the fly ash should be spared for Electricity Board for allotting the same to other industries. ACC has to pay 80% of the charges towards water and current consumption since it is allowed only 80% collection. The appellant, pursuant to the MoU, invested more than Rupees Four Crores and put up necessary machinery for collection of fly ash. Since then, it continued to collect fly ash, paid proportionate electricity, water and other charges and spared fly ash to others as per the direction of electricity board. After about 4 - years, the Chief Engineer, Electricity Board, issued the impugned order dated 14th July, 2006, bringing down the share of ACC from 80% to 40% in Unit -II of MTPS for the reasons as mentioned above. Stand of Appellant - ACC :

(3.) CASE of the respondent before the Court: