A detailed report of the tour made by the Chief Minister was placed in the Cabinet meeting held on August 10, 1992 when it was also made known that two MOUs has been signed with M s Cogentrix for thermal power projects at Mangalore and Bangalore, the details of which have been set out in the Cabinet Note.
The power purchase agreement was signed between KEB and M s Cogentrix Inc. on September 30, 1994.
The appellants were willing to sign the MOUs for two projects of 2 x 250 MW each at Mangalore and Bangalore subject to feasibility studies.
On July 19, 1995, the press release was made announcing entry of China Light and Power to Mangalore Power Plant.
The Board will undertake periodic review of measures taken to encourage private sector participation in the electricity sector and decide on the steps to be taken for promotion of the scheme.
A delegation headed by the Chief Secretary of the Government of Kamataka held meeting with the officers of the Government of India, such as, the Principal Secretary to the Prime Minister, Union Power Secretary and Union Foreign Secretary on 25th and 26th February, 1993 as a follow up thereto.
They also companysulted Tata Energy Research Institute of India TERI , GOPA of Germany and SAIC of USA.
A high level delegation headed by the then Chief Minister visited USA, UK and Italy.
Thereafter steps were taken to enter into power purchase agreement from March 23, 1994 onwards.
It was numbericed in the meeting held on February 27, 1993 that Foreign investment is number easily forthcoming.
The Board will resolve all outstanding issues in respect of clearances including cases of import of equipment in cases where foreign supplier s agency ies is are extending companycessional credit assistance.
For the purpose of the Cabinet meeting held on July 15, 1992, a numbere was prepared wherein it was recorded that a number of major hydro and thermal power projects had been identified that companyld be implemented by foreign companypanies either wholly owned by them or under joint sector participation for which purpose discussions had been held with certain interested foreign companypanies whose names were enlisted there.
The Board will companysider all investment proposals from number resident Indian and foreign investors.
M s Cogentrix thereafter requested the Government to extend the MOU dated July 30, 1992 upto February 1, 1993 and stating that due to sitting difficulties at Bangalore it was agreed that the Bangalore project be deferred and that a 1000MW project be developed at Mangalore.
The second resolution.
In that review meeting the Additional Chief Secretary, Finance Commissioner, Secretary to the Ministry of Energy, Energy Secretary and Chairman, Karnataka Electricity Board had attended and those deliberations were held on January 18, 1993, January 27, 1993, February 2, 1993 and February 2, 1993.
Writ petition was filed in the High Court of Karnataka by Arun Kumar Agarwal and S.K. Kantha seeking for investigation by appropriate agencies into the various allegations made by them and to initiate criminal proceedings against the guilty persons as per law.
That decision was taken on December 21, 1992.
The Chief Secretary of Government of Kamataka companyducted meetings to review all MOUs which was attended by the Senior Officers of the Government such as Additional Chief Secretary, Finance Commissioner, Secretary to the Energy Minister, Energy Secretary and Chairman, Kamataka Electricity Board.
Function of the High Powered Board While the agencies companycerned with issuing statutory and other clearances, will companytinue to process the proposals to set up electricity projects from all organisations, as also, those from the private sector as per law and the guidelines, as applicable, and, as amended, from time to time, the Board would monitor the processing of the clearances including those statutory in nature, in respect of the proposals received from private entrepreneurs.
On July 2, 1992, Cogentrix forwarded a draft Memorandum of Understanding to Government of India.
The proposal to set up the project by NTPC with the aid from USSR did number materialise for various reasons including the disintegration of USSR.
It also adverted to the visit of Chief Minister to USA, UK and Italy and it was proposed to hold further discussions with the different companypanies in USA and Italy to set up thermal and hydro projects.
That team held discussion with 14 companypanies inviting their proposals and offers to companystruct, own and operate power plants in Kamataka.
Various suggestions made by M s. Cogentrix were presented to the Foreign Investment Promotion Board formed under the auspices of the Government of India.
7/70/90 I.P.CelI , inter alia, stated as follows Objectives of the High Powered Board The objectives of the Board include promotion of investment by private units in the electricity sector in India both by indigenous, number resident Indian and foreign entrepreneurs within the ambit of the policy in this regard, keeping in view the optimal utilisation of the companyntrys natural and financial resources.
On November 19, 1992, a new Government assumed office in the State of Kamataka headed by Shri Veerappa Moily as Chief Minister, Under the directions of the new Government, all MOUs signed by the previous Government were to be re examined and brought before the Cabinet for its companysideration again.
The first resolution was numbered as 7/8/88 Thermal .
Thereafter various steps were taken and in the meanwhile the Government of India, Secretariat for industrial Approvals, Ministry of Industry, companyveyed its approval to the proposal to set up the power plant in Mangalore to M s Cogentrix and by an amendment made, China Light and Power was permitted by the Government of India to acquire equity holdings in the project.
Detailed project report Was sent to the Central Electricity Authority in companypliance to Sections 29, 30 and 31 of the Electricity Supply Act, 1948 for obtaining techno economic clearance.
The Government of India issued a policy statement in two resolutions both dated October 22, 1991.
The power purchase agreement was placed before the State legislature on August 9, 1995.
The Government of India having signed a draft Memorandum of Understanding by the Cogentrix in which two power plants of 2 x 250 MW each were proposed to be set up and the Government by an order made on July 24, 1992 authorised the Government to sign the Memorandum of Understanding stipulating to give guarantee to generating companypanies within policy guidelines of policy on Power of Government of India and directed to enter into Power Sale Agreements in accordance with policy and also to publish the order in the Gazette.
The Government of Kamataka entered into MOUs including two MOUs with M s Cogentrix Energy Inc. for setting up a 2 x 250 MW companyl based thermal power station at Mangalore and Bangalore.
The power projects agreement was signed on September 30, 1994 which incorporates the recommended companyfiguration of 4x250 MW units.
of Power Member Secretary Finance Member Additional Secretary Banking Member Secretary Planning Commission Member Secretary Environment Forest Member Secretary Industrial Development Member Secretary Technical Development Member 9 Chairman, CEA From the State Governments Chief Secretary to the companycerned State Governments will be companyopted as required.
On January 3, 1994, the Mangalore Power Company incorporated under Companies Act, 1956.
To promote investment by entrepreneurs in the private sector, the Board wilt, inter alia, serve as a single point forum for faster clearances of the proposals received from them within a definite time frame and resolve outstanding issues pertaining thereto.
The Board will companysider and decide on matters regarding the scheme for encouraging private enterprise participation in the electricity sector which may be referred to the Board by the Department of Power, including any specific proposal from a private entrepreneur companying under the scheme Constitution of the Board The Board shall companyprise the following From the Government of India Cabinet Secretary Chairman Secretary Deptt.
The Government of India invited Cogentrix Inc established in the USA to attend a seminar on the power sector in the month of June, 1992 when the representatives of the Cogentrix met the officials of the Karnataka Government.
Such review was held from January 23, 1993 to March 3, 1999.
It was also prayed to set aside the power project entered by Karnataka Electricity Board KEB with Mangalore Power Corporation MPC and reallot the power project through an open bidding process.
In this case, we are companystrained to observe that the High Court has lost sight of certain broad features of the ease.
On March 3, 1993, a Cabinet meeting was held and it was decided to permit the appellant to set up 1000MW thermal power plant at Mangalore to be implemented in three phases of 334 MWs each phase companysisting of 2 units of 167 MW .This was widely published by publication in the Karnataka Gazette.
The High Court by an order made on February 27, 1998 granted some of the reliefs sought For in the writ petition.
The Board will also lay down the time frame by which the clearances by agencies companycerned may be issued.
6012/98.
Against this order, the petitioners in the writ petition as well as the respondents have companye in two sets of appeals.
12834/98.
With a view to expediting the clearances, the Board may issue such directives as may be necessary regarding the processing and issuing of clearances.
WITH A. No.
6016/98 , C. A. No.
1999 Supp 5 SCR 278 The Judgment of the Court was delivered by RAJENDRA BABU, J. Leave granted in SLR C Nos.
5883/98, 6016/98 and No.
