Gmr Chhattisgarh Energy Limited v. Union of India

V.K. SHALI, J FEBRUARY 06, 2015/dm

* IN THE HIGH COURT OF DELHI AT NEW DELHI + WP(C) No.3047/2014 Decided on : 6th February, 2015 GMR CHHATTISGARH ENERGY LIMITED ..... Appellant Through: Mr. Gopal Jain, Senior Advocate with Ms. Padma Priya, Advocate. versus UNION OF INDIA & ORS. ..... Respondent Through: Mr. Sanjay Jain, ASG with Mr. Malaya Kumar Chand and Ms.Rajul Jain, Advs. for R-1/UOI. Mr.Anil Soni, CGSC and Mr.Naginder Benipal, Adv. for R-2/Central Electricity Authority. CORAM: HON'BLE MR. JUSTICE V.K. SHALI 1. This is a writ petition filed by the petitioner against the respondents for quashing the communication dated 19.06.2013 issued by the Ministry of Railways to Central Electricity Authority ('CEA' for short) as being totally arbitrary and violative of Article 14 of the Constitution of India. It has been further prayed that directions be issued to the Railway Board for permitting the movement of imported coal from Vizag port to the petitioner's plant via Tilda Station of SEC Railway. 2. Briefly stated the fact of the case leading to the filing of the present writ petition are that the petitioner had proposed to set up coal based thermal power plant of 1370 MW (2 x 685 MW) at Village Raikheda, Tilda Block, Raipur, Chattisgarh. The feasibility report was submitted to the South Eastern Central Railway (hereinafter referred to in short as 'SECR') which was approved in principle. However, the plant could not be made operational on account of the fact that the domestic coal linkage was not provided. Since there was a prolonged delay in obtaining the immediate domestic long term coal linkage, the petitioner proposed to use the imported coal from South Africa till the time of obtaining the domestic coal linkage. The petitioner accordingly signed a Memorandum of Understanding with South African coal mines for supplying the requisite coal to the plant site till the domestic coal linkage was obtained. The imported coal was proposed to be moved from Vizag port via Titlagarh-Raipur railway station to the plant site which was at a distance of 13 km from the Tilda station for the purpose of running thermal power plant. Necessary approval was sought from the Chief Operations Manager, SECR vide letter dated 29.03.2011. On 04.07.2011 the Railway Transport Clearance (hereinafter referred to in short as 'RTC') was issued to the petitioner by the Ministry of Railways for movement of imported coal from Vizag to the plant siding at Tilda wherefrom it was perhaps to be carried by road to the plant. In the said communication, it was specifically assured to the petitioner that the aforesaid RTC was valid for the full life of the project if commissioned or for five years in case project is not commissioned. On 13.10.2011, SEC Railway approved the detailed project report of the petitioner categorically mentioning that the imported coal can be moved via Tilda Station. The only requirement was that only 4.2 MT of coal volume was to be imported and it was to come via Vizag port. Based on the aforesaid assurance and the RTC, the petitioner approached the Railway Board for issuance of instructions to the concerned railways authorities on 25.01.2013 for undertaking the movement of imported coal from Vizag port to the plant site. 3. On 28.02.2013, the Ministry of Railways replied to the petitioner that the imported coal to power houses in the country, as per the logistics plan issued by the Railway Board, the power plants in Chattisgarh State have been linked to Western Ports and the power houses wanting to move imported coal from the port outside the logistics plan, the approval of the CEA was required. 4. It may be pertinent to mention here that this was for the first time after the grant of RTC by the respondent No.1 that said respondent made a reference to the logistics plan of Railways for the movement of coal to the power plants in Chattisgarh. 5. On 14.03.2013, the petitioner without prejudice to its rights approached to Central Electricity Authority for its recommendation to per