SIEL LIMITED Vs. PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

JUDGEMENT

(1.) THIS judgment would dispose of FAO Nos. 5371 of 2002, 5243 of 2002, 5298 of 2002, 216 of 2003, 278 of 2003, 371 of 2003, 412 of 2003, 508 of 2003 and 875 of 2003 as common questions of law and in some cases, common facts are also involved in all the aforestated appeals. However, the facts are being taken from FAO No. 5371 of 2002.

(2.) THIS appeal has been filed by SIEL Limited. The appellant has set up a large industrial estate jointly with Government of Punjab within the precincts of the Industrial Estate near Rajpura, District Patiala. In this very estate, a commercial complex was also to be set up, which is to act as nucleus for the ancilliary industry. In the aforestated endeavour, the land had been acquired by Government of Punjab and a unit under the name and style of Sri Ram Industrial Enterprises Limited had been promulgated for setting up an industrial estate. The complex was also known commonly as Siel Chemical Complex to be developed at a cost of Rs. 210 crores. The chemical complex came into existence and the commercial production was started with effect from February, 1999. The main products being produced are Caustic soda and Chlorine by electrochemical process. In this process, "power cost" projected in the manufacturing cost is around 60%. Thus, the appellant is a large intensive power consumer of the Punjab State Electricity Board (hereinafter referred to as "the PSEB"). The contract demand of appellant is 35 Megawatts whereas the active load is 38 Megawatts (MWs). The power consumed in terms of money during the financial year 2001-2002 came to be around Rs. 60 crores based upon the applicable tariff of Rs. 3.17 per unit. It is further averred that the appellant is not a defaulter of the PSEB and has been paying the power bills regularly.

(3.) BEFORE the fixation of the tariff for supply of electricity by the PSEB, the Commission received objections from various consumer organisations/consumers, inclusive of the explanations of the PSEB and the Government of Punjab. The Commission heard the consumers and all the concerned persons at the public hearings and that the State Advisory Committee had also been consulted. The relevant material required for the purpose of determining the tariff was also examined by the Commission. An order dated 6.9.2002 has been passed by the Commission and that the tariff described and prescribed has been made effective from 1.8.2002.