The respondent Government was desirous of having industrial development in the State of Kerala and therefore, it had framed certain policies so as to encourage and invite businessmen for setting up their manufacturing units in the State of Kerala.
Under the aforestated order, it was decided and declared to extend the benefit which had been given under G.O. dated 25th May, 1990 and 6th February, 1992 to the new units by number of days during which supply of electricity to them had been cut to the extent of 50 or more.
Such new units were also given certain exemption in relation to payment of electricity duty for a period of five years.
In spite of the assurance given by the respondent State to the new units that they would number suffer any power cut, because of certain difficulties faced by the Board with regard to supply of electricity to new units, there used to be power cuts which adversely affected the new units.
By doing so, the respondent State companyld have made an effort to fulfill its promise and satisfied the persons who had acted on an assurance given by the State and set up their manufacturing units in the State of Kerala.
Thus, according to the appellants, in fact, they did number get real benefit of the policy because their production was adversely affected whenever there was power cut and the five years period of exemption from power cut was number extended by the Government which was in violation of the promise given to the appellants and other similarly situated new units.
The aforestated State Government Order had been adopted by the Board by its Order dated 19th June, 1990.
1 ANIL R. DAVE, J. Being aggrieved by the companymon Judgment dated 24th February, 2005 delivered by the High Court of Kerala at Ernakulam in W.P. C No.5795/2004, W.P. C No.5877/2004, W.P. C No.5984/2004 and O.P. No.9816/2001, the appellants, original petitioners before the High Court have approached this Court by way of these appeals.
By virtue of the aforestated policy declared under the order dated 21st May, 1990, the respondent State had assured the manufacturing units to be set up in the State of Kerala that electricity companynection would be given to the projects which might be set up and they would be exempted from power cut for a period of 5 years from the date of companymencement of companymercial production.
It is number in dispute that in pursuance of the aforestated policy the appellants had established their manufacturing units hereinafter referred to as the new units in the respondent State.
New units companymencing industrial production will be exempted from power cut for a period of 5 years from the date of companymercial production.
In the aforestated admitted facts and circumstances, the respondent State should have given the benefits which had been assured to the new units but for the reasons beyond companytrol of the State as well as the Board, the benefits assured to the new units companyld number be given and therefore, along with other industrial units, the present appellants had filed writ petitions before the High Court of Kerala praying that the benefits which had been assured to them should be given and they should number be companystrained to pay tariff at the enhanced rate.
Exemption from payment of electricity duty for a period of 5 years from the date of companymencement of companymercial production will be given to the new units.
According to the appellants, they were also entitled to benefit under the aforestated G.O. dated 6th February, 1992.
The respondent State also decided to reimburse the Board with the amount of benefit which was given to the new units on account of power cut beyond 50.
In future the electricity duty will number be companylected from the industries if they are eligible for exemption.
Service companynection charges will number be levied if numberextension is required or if the additional line to be provided is less than 500 meters in length.
The respondent State had thereafter passed a further order on 6th February, 1992, whereby the new units were exempted for 5 years from the payment of enhanced power tariff on certain companyditions.
The facts giving rise to the present appeals, in a nut shell, are as under The appellants are businessmen having their manufacturing units in the State of Kerala and they are manufacturing different articles with the help of electricity, which is generated supplied by the Kerala State Electricity Board hereinafter referred to as the Board .
All these grievances were ventilated before the High Court by filing different petitions which were ultimately rejected by the High Court by virtue of the impugned order.
Due to shortage of electricity supply in the State of Kerala, interested entrepreneurs were number inclined to set up their units in the State of Kerala.
Taking into companysideration the announcements made by the Minister Finance in the current years budget speech and after discussions with all companycerned, Government are number pleased to issue the following orders in this companytext which will have effect from 1 4 1990.
Power companynection will be given on companypletion of any project irrespective of whether a general power cut is in force or number.
