- (1.) M . KARPAGA VINAYAGAM 1. "Whether the Torrent Energy Limited, the Appellant is entitled to be granted exclusive license in the SEZ area of supply by carving out the SEZ area from the existing distribution licensee area of DGVCL and by delimiting its existing area of Supply - This is the question posed for consideration in this Appeal.
(2.) M /s Torrent Energy Limited (TEL)is the Appellant herein. 1st Respondent Dakshin Gujarat Viz Company Limited (DGVCL) is the distribution licensee in terms of Section 14 of the Electricity Act 2003 having Southern Part of Gujarat as its area of supply. 2nd Respondent Dahej SEZ Limited is the Developer of Dahej Special Economic Zone. 3rd Respondent is workers union of 2nd Respondent. 4th and 5th Respondents are the Government of India and Government of Gujarat respectively. Gujarat Electricity Regulatory Commission (State Commission) is the 6th Respondent.
(3.) TORRENT Energy Limited has filed the present Appeal aggrieved by the order dated 17.11.2009 passed by the Gujarat State Commission granting a second license for distribution of power in a specified area to the Appellant instead of granting exclusive license. The short facts are as follows: (a) The Dahej Special Economic Zone (SEZ) Limited is a Company floated by GIDC and ONGC duly notified by the Ministry of Commerce and Industry, Government of India as a Developer of multi product SEZ at Dahej in Southern part of Gujarat. (b) On 23.6.2005, the Special Economic Zone Act, 2005 came into force, on 10.2.2004 Gujarat Special Economic Zone Act, 2004 came into force. (c) On 20.12.2006, the Dahej SEZ was notified by the Ministry of Commerce and Industry, Government of India as a Multi product SEZ. (d) On 11.6.2007, the Government of Gujarat gave "in principle" approval to designate Torrent Power Limited as a Co -Developer of Dahej SEZ Limited for the purpose of establishing 1500 MW Generation and Distribution Facilities in the SEZ area. (e) On 14.7.2007, the Dahej SEZ Limited acknowledged the designation of Torrent Power Limited as a Co -Developer. (f) On 13.2.2008 Torrent Power Limited and others promoted Torrent Energy Limited as Special Purpose Vehicle for carrying out its obligations related to generation and distribution of power in SEZ. (g) On 30.5.3008, the Dahej SEZ Limited acknowledged and accepted the Appellant, Torrent Energy Limited as a Co -Developer. (h) On 2.8.2008, the Dahej SEZ Limited (the Developer) and the Torrent Energy Limited (the Co -Developer), the Appellant, entered into an agreement called the "Co -Developer Agreement". As per the Agreement, the Co -Developer shall have sole and exclusive rights with respect to development of gas based power generation upto 1500 MW and distribution of power in the SEZ area. (i) On 10.10.2008, the Government of India issued a letter approving the Appellant as a Co -Developer in the place of Torrent Power Limited. (j) On 6.8.2008, the Appellant filed an application before the State Commission for issuance of license under Section 14 of the Electricity Act, 2003. (k) In pursuance of the order of the State Commission, the Appellant published a public notice on 20.9.2008 in leading Newspapers under Section 15 of the Electricity Act, 2003. (l) The State Commission directed the Appellant to furnish some more particulars and to comply with certain queries. Accordingly, the Appellant has furnished all the particulars along with required certificates. (m) In the meantime, the DGVCL reported to the State Commission that once a distribution license is granted to the Appellant, an SEZ's Developer, the DGVCL will no longer be obliged to discharge its duties in the area of Dahej SEZ Limited (n) On 8.5.2009, the State Commission passed an order admitting the petition of the Appellant for grant of exclusive distribution license. Under Section 15(5) (a) of the Electricity Act the State Commission published a public notice in News Papers (o) On this basis, on 3.6.2009, the State Commission published public notices Under Section 15 (5) and Section 18 of the Electricity Act, 2003 inviting the stake holders to submit their suggestions and objections on issuance of an exclusive distribution license to the Appellant and also for amendment to existing license of DGCVL. After considering the objections, the license application was finally heard by the State Commission on 14.10.2009. (p) After considering the materials available on record, the State Commission by the impugned order dated 17.11.2009 though refused to grant exclusive license to the Appellant in the SEZ area of its supply, it granted a second license to the Appellant without disturbing the distribution work of the existing licensee namely the DGVCL. (q) Aggrieved by the refusal of the Exclusive License, the Appellant has filed the Review Petition against the said order. The Review Petition has been dismissed on 8.10.2010. Hence this Appeal. The main question that arises in this Appeal is that "Whether the Appellant is entitled in law to an exclusive license in the SEZ area of supply to the exclusion of the incumbent distribution licensee, DGVCL by delimiting and reducing its existing area of supply ?;