DLF POWER LIMITED Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) The petitioner-M/s. DLF- Power Limited being not satisfied with the order of withdrawal of No Objection Certificate (for short NOC) granted over four years ago, has challenged the order contained in letter No. 1757 dated 17th July, 2002 issued by Jharkhand State Pollution Control Board (J.S. Pollution Control Board for short). The NOC earlier granted to the petitioner has been withdrawn and cancelled in pursuance of letter No. 103-22/EPE dated 18th June 2002 issued from the Ministry of Environment and Forests. Eastern Regional Office, Government of India, New Delhi. The aforesaid letter dated 18th June, 2002 has also been challenged by the petitioner.

(2.) The case of petitioner is that it entered into an agreement with the Coal India Limited (for short CIL) on 11th January, 1995 for setting up captive power plant, on Build-Own-Operate Basis at Madhuband Washery of Bharat Coking Coal Limited, Dhanbad (for short B.C.C.L.). As per the agreement, petitioner is to supply power to Madhuband Washery Areas, at Baghmaro in the district of Dhanbad (now in the State of Jharkhand). The land for the power plant was provided by B.C.C.L., a subsidiary of C.I. L. As per the agreement, petitioner had to arrange finance, design and procure, install, operate and maintain fluidized bed combustion boiler based. Thermal Power Plant along with various other equipments for the power plant. Further case of petitioner is that the plant based on fluidized bed combustion technology is a latest technology which is environmental friendly. The actual cost of the project as installed is about Rs. 80 crores. After signing of the agreement and acquiring land the petitioner vide its application No. 284 dated 26th August, 1997 applied to the Bihar State Pollution Control Board (for short B.S. Pollution Control Board) for obtaining NOC u/Ss. 25 & 26 of the Water (Prevention & Control of Pollution) Act, 1974 (for short Act, 1974) and u/S. 21 of the Air (Prevention & Control of Pollution) Act, 1981 (for short Act, 1981) for setting up 1 x 10 MW Captive Power Plant at Madhuband, NOC u/Ss. 25 & 26 of the Act, 1974 and u/s. 21 of Act, 1981 was issued by the B. S. Pollution Control Board to the petitioner vide Reference No. T-1975 dated 25th March, 1998. On the basis of NOC dated 25th March, 1998 granted by B.S. Pollution Control Board, the petitioner went ahead with the setting up of the Power Plant and made huge Investment of about Rs. 80 crores in the project. It has erected, tested and the plant has already been commissioned in the month of September, 2002 itself. According to petitioner, it came as a shock to receive letter dated 17th July, 2002 from J. S. Pollution Control Board stating that the NOC granted by B.S. Pollution Control Board dated 25th March, 1998 has been cancelled on the plea that NOC was granted without conducting public hearing which is inconsistent with S.O. No. 319-E dated 10th April, 1997. The petitioner has been asked to get a fresh environmental clearance before start of construction activity and has been directed to stop all activities such as site clearance. The cancellation of NOC seems to have been done on the direction of 4th respondent-Union of India vide letter dated 18th June, 2002.

(3.) Further, according to petitioner, the respondents failed to appreciate the fact that construction and erection of plant had already been carried out after obtaining NOC and the same has already been completed and commissioned after huge investment of Rs. 80 crores. It has been alleged that the NOC has been cancelled in pursuance of an order dated 18th June, 2002, communicated vide letter dated 17th July, 2002 without issuing any show cause notice to the petitioner and without taking into consideration the relevant fact that the plant has already been commissioned and all the construction activities were complete.