- (1.) INTERPRETATION and/or application of the provisions of the Andhra pradesh Electricity Reforms Act, 1998 (for short the 1998 Act) vis-a-vis the orders passed by the Andhra Pradesh Electricity Regulatory commission (for short 'the Commission') are involved in these appeals which arise out of the judgments and orders passed by a Division Bench of the Andhra Pradesh High Court.
(2.) THE matter relating to generation, supply and distribution of electrical energy in the State of Andhra Pradesh used to be governed by the provisions of the Electricity (Supply) Act, 1948 (For short, the 1948 act ). With a view to bring reforms in the Power Sector and to meet shortages in power supply, the State of Andhra adopted a policy decision for generation of power through MPPs of 30 MW capacity in private sector. For the said purpose it issued two G. Os. being G. O. No. 116 dated 5th August, 1995 and G. O. No. 152 dated 29th November, 1995. In the said Government orders, the liberalization policy of the state in respect of its industrial economy so as to enable the State Government to attract investment from other parts of the country as also from outside the country was highlighted. It intended to bring about competition in the industry.
(3.) IT is stated to have taken a series of measures for augmenting power including privatization. It took into consideration the fact that the power plants costing less than Rs. 100 crores and which do not require Central Electricity Authority's clearance, and in respect of which project clearance at the State level would suffice as a result thereof the period may be reduced considerably. The relevant extract of G. O. No. 116 dated 5th August, 1985 reads :- "the state government have therefore felt that it would be appropriate to setup mini power plants based on residual fuels in the industrial estates to relieve the burden of the industrial load centres and tail end areas which are suffering from stress on account of transmission and distribution problem. " It further provided: "the Government have also felt it necessary to take up mini power plants of 30 MW capacity which could be implemented within a period of 12-18 months at suitable locations where industries are concentrated and the power plants can meet the demand of industries without any interruption. " ;