S.RAJENDRA BABU, J. - (1.) IN the year 1991 the Government of India decided to liberalise the policy for the development of power Sector in India. Electricity (Supply) Act. 1948 was amended by the Electricity Laws (Amendment) Act of 1991 to enable private parties to establish, operate and maintain generating stations. A scheme was formulated by Government of India on 22nd October, 1991 to encourage the private enterprises to take part in power generation, supply and distribution which was published in the Gazette of India, The said scheme provided that the Generating company can enter into a contract for the sale of electricity generated by it with the State Electricity Board in any State where it owns/operates generating station/stations or in any other State it is carrying on its activities or with any ether person with the consent of the competent Government concerned. The procedure for fixing the tariff for the sale of electricity was also provided in the scheme. Government of India constituted, on the same date, a High level Board for considering promotion of investment by private units in the Electricity sector. On 31st March, 1992, Government of India issued a notification setting out the factors in accordance with which the tariff should be determined. In April, 1992 the Government of India published a brochure detailing the new policy for encouraging private sector participation for power generation and supply. The said brochure mentioned various clearance required for taking up the project. In May, 1992 a High Level Delegation of the Government of India visited U.K. and U.S.A. to invite foreign enterprises to set up power projects in India. These policies and the steps taken were widely circulated through the media, in the seminars and meetings and were also sent to every major company in the world. Lot of publicity was also given to the visits by the high level delegation and discussions held with prospective private enterprises. The delegation made highly publicised presentations to audiences of investors, project developers, financial institutions, independent power generators and US -based companies.
(2.) THE Government of Karnataka in order to augment its generating capacity decided to invite foreign investors in the field of Electricity inas much as the State owned Karnataka Power Corporation Ltd., (KPCL) did not have enough financial resources to set up such a project on its own. The State Cabinet approved this policy and also the Memorandum of Understanding on 15th July, 1992 for generation of power with the following companies: 1. M/s North East Energy Services, USA - Chamalpur2. M/s Westing House Electric Corprn. USA - Hospet3. M/s North East Energy Services, USA - Raichur Unit 5 and 6;4. M/s Cogentrix Inc. USA - Mangalore and Bangalore;5. M/s Condotte, Italy - Shivasamudram A team led by the then Chief Minister accompanied by Secretary, Energy Department, Principal Secretary to the Chief Minister, Director of Industries and Commerce and the Resident Commissioner, Karnataka, visited U.S.A. U.K. and Italy. The team widely publicised the purpose of its visit and distributed brochures outlining the policy of the State Government to encourage private sector participation. During the said visit, for the thermal power project to be located at Mangalore, Memorandum of Understanding (MOU) was entered into with M/s Cogentrix Energy Inc., U.S.A. The project site at Mangalore was selected on the basis of a report made by Dr.M.P Chokkalingam Committee. At that time, the project was allotted to National Thermal Power Corporation (NTPC) to set up 2420 M.W super -thermal project in collaboration with the Soviet Union. However, NTPC was not able to put up this project owing to disintegration of the Soviet Union. Thus the matter was finalised to allow M/s Cogentrix Energy Inc., to set up its project at Nandikur, Mangalore.
(3.) IN the year 1986 -87 KPCL obtained the expert advise of M/s Tata Consulting Engineers to generate power through a thermal power plant with its location in Dakshina Kannada After evaluation of several factors and several alternative sites, a report was submitted by TCE that the site nearby Nandikur village was optimally suited for the local of thermal power project. The proposal then was to establish a power plant having a capacity of 2X210 MW. The suitability of the area at Nandikur village for setting up of the thermal power project was also supported by the report of Dr. Chokkalingam, Annamalai University, who was requested to carry out environmental impact study. In the meanwhile, NTPC also evinced interest in establishing a super -thermal power plant at the said site. NTPC proposed to establish 2420 MW super thermal power project by using indigenous coal and 2400 acres of land was sought to be acquired for the purpose.;