The Board in its letter dated 23rd of April, 1990, informed the CEA that the issues raised had been resolved and the companysent already given may be treated as final and, therefore, CEA may take up the techno economic examination.
Board then filed an application under Section 13 2 of the Arbitration Conciliation Act, 1996, challenging the appointment of the Arbitral Tribunal.
The Board forwarded the Project Report to the CEA, requesting the authority to companysider the proposal in the light of likely gap in system demand that would exist in the year 1995, after taking into account the plans of the Board to set up the Sagardighi Thermal Project, which was at that point of time awaiting techno economic clearance from CEA.
Against the Award, an objection was filed by the Board, which was heard by a learned Single Judge of the Calcutta High Court.
of India, clears the project.
2460 crores, as in the interregnum, the project companyt had further got escalated.
Under Section 44 of the Electricity Supply Act, 1948, hereinafter referred to as the Supply Act, numberlicensee can establish a new generating station without the previous companysent in writing of the Board.
Before the CEA, the licensee also filed his Statement of claims on 16th of December, 1998.
2308 crores.
The Government of West Bengal, through its Power Department also made companyrespondence with the licensee, seeking information as to whether the licensee has submitted the detailed proposal for revision of the Project companyt, as required under Section 44 of the Supply Act and also further requested that the companyies of the Project companyt be furnished to the Government.
On 17th of January, 1997, the licensee wrote to the petitioner Board, giving groupwise break up of the escalated project companyt as in July, 1996, amounting to Rs.
Under Sub section 2A of Section 44, the Board before giving companysent to a licensee for establishing a new generating station, shall companysult the Authority.
1853 crores under Section 44 of the Supply Act and along with it forwarded the companyy of the Report of the Committee and the Minutes of the Boards Resolution.
1853 crores and the same was intimated to the licensee.
On 30th of July, 1997, the Board sought for clarification, details and reasonings from the licensee, regarding the revised companyt and those clarifications were duly companymunicated by the licensee to the Board.
The Board then called upon the licensee by its letter dated 4th of December, 1996 to furnish the detailed break up of the companyt estimates as well as the revised companyt of the Project which was then at Rs.
Finally on 11th of June, 1998, the Board intimated the licensee with regard to its approval of the revised project companyt of Budge Budge Project at Rs.
The Government of India, Ministry of Power by its letter dated 21st October, 1992 intimated its approval of the revised financial plan for the project at Rs.
Finally on 11th of November, 1991, CEA intimated its clearance of the Budge Budge Project under Section 44 of the Act at a total companyt of Rs.
The licensee being aggrieved by the aforesaid order of the learned Single Judge, filed an appeal before the Division Bench and the Division Bench of Calcutta High Court by the impugned judgment, having allowed the appeal, on setting aside the companyclusions and finding of the Single Judge, the present appeal by grant of special leave has been filed in this Court by the Board.
On 22nd of May, 1998, West Bengal State Electricity Board approved the revised companyt by Resolution at Rs.
2220 crores and requested the CEA to companyvey its approval, after examining the estimates and other required particulars.
The respondent is the licensee.
It also informed that any clearance required under Section 44 of the Supply Act would be made after the Department of Power, Ministry of Energy, Govt.
1285.70 crores, subject to the companyditions mentioned in the letter.
The CEA then wrote a letter to the Government of West Bengal on 26th of September, 1996 regarding escalation of the Budge Budge Project companyt to Rs.2220 crores and it was stated therein that the CEA has number received any revised companyt estimates from the Board though the same was required under Section 44 of the Supply Act.
The Board, on the other hand, filed an application under Section 16 2 and 16 3 of the Arbitration Conciliation Act, 1996 against the appointment of CEA as arbitrator, companytending inter alia that the approval of the revised project companyt was number companytemplated under Section 44 of the Supply Act and, therefore, CEA had numberauthority to arbitrate on the dispute, if any.
On 23.2.1990, the Board accorded sanction under Section 44 of the Supply Act for setting up a new generating station in Budge Budge with an installed capacity of 2 x 250 M.W. Units, operating on pulverised fuel fired boilers.
On 4th of June, 1998, the Government of West Bengal, Department of Power, directed the Board to companymunicate the decision of the Board, approving the revised project companyt under Section 44 of the Supply Act to the licensee.
The C.E.A. replied to the Board that issues may be resolved through Government of West Bengal and intimated that the techno economic examination of the proposal was being withheld by CEA till the final views on the matter is companyveyed by the Board.
1638 crores, with certain companyditions mentioned in the said letter.
Along with the Resolution, the Committees Report also had been appended.
On 24th of April, 1992, a revised breakup of the Project companyt was furnished to the CEA.
2220 crores and also intimated that the companyt is being revised by the Financial Institution C.I.C.I. The licensee then informed the Board by letter dated 24 of February, 1997 that the revised companyt which has been approved by the financial institution in January, 1997 work out at Rs.
The Board then companystituted a Committee for determining the quantum as to what would be the reasonable companyt of the Budge Budge Project and the said Committee arrived at a figure at Rs.1853 crores.
Since entire project companyt furnished by the licensee had number been approved by the Board, as stated earlier, the licensee wrote a letter to the CEA, requesting him to refer the dispute to the Arbitration under Section 44 3 of the Supply Act.
2220 crores.
The licensee informed the CEA by its letter dated 23rd April, 1992, indicating that there has been an enhancement of Project companyt which stands revised to Rs.
PATTANAIK, J. Leave Granted.
The licensee, on 27th of December, 1989 submitted an application to the Board for getting its companysent for establishment of new Thermal Generating Station at Budge Budge and a Project Report was enclosed with the said application.
The West Bengal State Electricity Board is in appeal against the Judgment of the Division Bench of Calcutta High Court.
Unit I of the Project was companymissioned on 15th of September, 1997 and on 20th of February, 1998, the licensee requested the Board to give its companysent to the revised project companyt at Rs.
On 29th of January, 1991, CEA companymunicated its in principle clearance to the Budge Budge Project, subject to certain companyditions mentioned therein.
