K ASHOK RAO Vs. STATE OF A P

JUDGEMENT

(1.) These writ petitions are filed for issuing a Writ of Mandamus, declaring the impugned action of entering into Memoranda of Understanding (for short 'MOUS') by the 1st respondent with respondents 4 to 26 on 18-2-1995, for setting up of power projects in private sector in the State of Andhra Pradesh, as arbitrary, illegal and violative of Article 14 of the Constitution of India.

(2.) On introduction of Private Power Policy, the Union of India, the 2nd respondent, had written to all the State Governments, in the month of October 1993, to introduce competition by asking for priced bids, for setting up of Power Projects. Pursuant to the said Policy, necessary training was given to the Officers working in the State Electricity Boards of Andhra Pradesh, Maharastra and other States and a number of Workshops for the State Electricity Board Officers were organised, so as to prepare scientific bidding documents. The Ministry of Power, the 2nd respondent, also prepared guidelines for competitive bidding route for private power projects in following the bidding route. By letter dated 16-1-1995, addressed to the then Chief Secretary to the Government of Andhra Pradesh, by the Union of India-2nd respondent, guidelines were indicated making it clear that all future power projects should come through the competitive bidding and the Central Electricity Authority has asked the State Governments not to entertain any proposal which has not been processed through the procedure of competitive bidding. In response to the same, the 1st respondent-Government of Andhra Pradesh, appointed an Expert Committee on 3-1-1995 by making Sri Hiten Bhayya, a retired Member of the Planning Commission as head of the said Expert Committee, requesting them to prepare the report within forty days, assiging total responsibility to the private enterpreneurs for generation, transmission and distribution of power and also for re-structuring the tarrifs of the A.P. State Electricity Board. The said Expert Committee is yet to submit its report. Coming to know about this policy of respondents 1 and 2, for setting up private power projects, about 65 offers were made by interested parties. On 15-2-1995, the 2nd respondent-Union of India, wrote a letter addressed to the Principal Secretary to the Government of Andhra Pradesh, Energy, Environment and Technology Department, Hyderabad, the substance of which is in following terms: "The undersigned is directed to refer to D.O.of even no dated 18th January 1995 from Secretary (Power) addressed to Chief Secretary regarding competitive bidding route for private power projects.

(3.) Ministry of Power has taken a decision that Central Electricity Authority will consider those project proposals for techno-economic clearance which have been selected through the process of competitive bidding route in future. In order to monitor the implementation of this decision, it is requested that information about MOUS signed between promoters and SEBs/State Governments upto 18th February 1995 may kindly be furnished in the following format."