LAWS(APH)-1991-3-26

MODEL ALLOYS STEELS PRIVATE LIMITED CHINNABUTAPALLI VILLAGE GANNAVARAM MANDAL KRISHNA DISTRICT Vs. ANDHRA PRADESH STATE ELECTRICITY BOARD

Decided On March 05, 1991
MODEL ALLOYS STEELS PRIVATE LIMITED, CHINNABUTAPALLI VILLAGE GANNAVARAM MANDAL, KRISHNA DISTRICT. Appellant
V/S
ANDHRA PRADESH STATE ELECTRICITY BOARD Respondents

JUDGEMENT

(1.) The above two Writ Appeals arise out of a common order dated ; 21-11-1990 passed by a learned single Judge in W P 8584/90 and batch. The petitioner in WP 9652/90 has preferred W A No. 1480/90 while the petitioner in WP No. 13742/90 has preferred W A No. 28/91.

(2.) The impugned order dated 21-11-1990 passed by the learned single Judge has resulted in the dismissal of the writ petitions refusing to interfere with the orders passed by the Andhra Pradesh State Electricity Board categorising certain industries as negative industries with in adequate social returns and thereby refusing release of new loads or additional loads in favour of such industries.

(3.) The appellants are private and public limited companies who were consumers of electrical energy at their factories situate at various places in Andhra Pradesh. It would be essential to view the common problem arising in these writ appeals in the back ground of the developments which have led to the categorisation of certain industries as negative industries with no social return in matters of employment etc., by the State Electricity Board. It is a well- known fact that there has been a steep increase in the demand for giving connections to new industries which has created a crisis between the demand and supply of energy generated in the State of Andhra Pradesh. In order to cope up with this situation, the Board, in consultation with the Industries Department of the State Government, had identified certain industries which require a high capital investment by the Board but create very low employment potential compared to certain other industries like Textiles etc. The Director of the Industries Departments Government of Andhra Pradesh, dealing with the question of extension of electrical supply to industries, informed the Board that the State Government is aware of the difficulties arising out of the fact that additional generating capacity will not be sufficient to cater to the needs of the coming industries which had necessitated categorisation of industries under preferential list and negative list. The industries coming under the negative list are not to be given release of new or additional electrical supply and feasibility of supply certificates are not to be issued by the A. P. State Electricity Beard. Certain industries which do not fall under either of these heads are proposed to be kept in the intermediate list and their cases can be considered separately. Accordingly, the Board issued a press notification categorising 12 industries therein as negative industries. It would not be out of place to re-produce the press notification issued by the Board which is in the following terms : " Press Notification " " Considering the gap between the supply and demand for power and the likelihood of such shortage continuing for some more time in future, A P S E' Board in consultation with the Government, has decided that power supply to industries should in future be limited in respect of such of new industries which have high social return. Industries listed below have been identified ag those which do not have adequate social return for supply of power. <FRM>JUDGEMENT_230_APLJ2_1991Html1.htm</FRM> Feasibility of supply certificates will not, therefore, be given to the above industries. Any diversification of the existing industry into the lines of manufacture listed above as well as expansion of production on these lines will also attract similar negative approach. A P S E. Board. It is evident from a reading of the above said press notification that the Board has categorised these industries on the basis of the social return and has, therefore, decided that feasibility of supply certificates will not be given to the above industries and that no new load or energy or additional energy will be released in favour of such industries. It is this action of the Electricity Board which was challenged in the writ petitions and is now a subject matter of the writ appeals before us.