M/S. BRAHMAPUTRA STEEL PVT. LTD. & ANOTHER Vs. STATE OF ASSAM & OTHERS
LAWS(GAU)-1994-2-18
HIGH COURT OF GAUHATI
Decided on February 01,1994

BRAHMAPUTRA STEEL PVT LTD AND ANR Appellant
VERSUS
STATE OF ASSAM AND ORS Respondents


Referred Judgements :-

BSEB V. GREEN RUBBER [REFERRED]


JUDGEMENT

- (1.)In this application under Article 226 of the Constitution of India, the Petitioners have prayed for a direction to the Respondents to pay power subsidy, transport subsidy, capital subsidy, etc.
(2.)The Government of Assam made an Industrial Policy styled as Industrial Policy of Assam 1986 (which we shall refer to as the Policy of 1986). The policy provides, inter alia, interest subsidy and power subsidy in the following terms:
Interest Subsidy;

Entrepreneurs will be provided interest subsidy on working capital above 8 percent for SSI and Sick Industrial Units for such loans taken from banks and financial institutions. This benefit will be available for the first three years from the date of commercial production/revival of the unit respectively.

Power Subsidy:

Power subsidy will be granted as follows:

With regard to the Small Scale Sector, Power Subsidy will be granted to the extent of 50% for the first five years of commercial production. There will be no ceiling to the subsidy amount which can be availed of by the small scale sector.

Subsidy on drawal of power lines:

For the SSI units 50% of the cost incurred on drawal of Electrical Power Line, from the main line to the factory sheds, will be subsidized upto a ceiling of Rs 20.000/- for each industrial unit.

The implementing Agency is the Udyog Sahayak. Guidelines issued and published by the Udyog Sahayak Division indicates that the reimbursement of the subsidy amount would be done directly by the Udyog Sahayak on a quarterly basis. In order to ensure effective and proper implementation of the Policy of 1986, committees have been constituted at the Divisional level as well as at the State Level. The Divisional Level Committee consists of nine members. A representative of the Assam State Electricity Board (ASEB) is one of the members and the Commissioner of Division is the Chairman. The committee is to meet quarterly to review implementation of the Policy of 1986 and to ensure effective and close supervision about the implementation of the scheme, As regards the State Level Committee, the Minister of Industries is the Chairman and the Chairman of the ASEB is one of the members. The main function of the State Level Committee is to review the entire implementation of the Policy of 1986 and to direct various departments and agencies concerned to expedite required clearance within the stipulated time.

(3.)The case of the Petitioner company is thus. The Petitioner company started production on and from 20.7.88 and was granted eligibility certificate for claiming subsidy under the Policy of 1986. Therefore the Petitioner company is entitled to subsidy under the policy of 1986 for five years, viz, from 20.7.88 to 19.7.93. For the said period of five years, the Government has to pay to the Petitioner company power subsidy amount of Rs 305.93 Jakhs (being 50% of the actual power consumption charge). The Government paid only five (5) lakhs on ad-hoc basis on 5.4.91. The Government has also not paid Rs 20,000.00, subsidy on drawal of power lines. The Petitioner company is also entitled lo interests subsidy for the said five years but only a sum of Rs. 17,55,981.00 had been sanctioned by the Respondent-5 vide letter dated 20.12.93. Under these circumstances, Petitioner company could not pay some of the bills Raised by the ASEB for electricity consumption charges and, therefore, the ASEB has issued notice for disconnection of power supply. The ASEB has also surcharged the Petitioner company a huge amount of money. Had the power subsidy been received in lime, the question of default in payment of electricity charges and surcharge would not have arisen and the Petitioner would have been entitled to rebate. That apart, no action has so far been taken for payment on the applications of the Petitioner company made to the competent authority claiming capital investment subsidy of Rs 10,00,000,00 and transport subsidy of Rs 30,00,000.00. On failure of the Government to pay the subsidy amount and on receipt of notice of disconnection of power supply this application has been filed by the Petitioner company claiming Power subsidy, interest subsidy and subsidy on drawal of power lines under the Policy of 198$ and also capital subsidy, transport subsidy and exemption of surcharge. The Petitioner has also claimed interest on the unpaid subsidy amount.


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