Delhi High Court
Reliance Power Ltd. & Ors. vs Union Of India & Ors. on 6 June, 2018
$~
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CM No. 2839/2018 (for directions) in WP(C)No. 7334/2015
% Reserved on : 23rd March, 2018
Date of decision :6th June, 2018
RELIANCE POWER LTD. & ORS. ...Petitioners
Through: Mr. P. Chidambaram, Sr.
Adv alongwith Mr. Mahesh
Agarwala, Adv.
versus
UNION OF INDIA & ORS. ...Respondents
Through: Ms. Maninder Acharya, ASG
alongwith Mr. Pradeep
Aggarwal, Ms. Vivya
Nagpal, Mr. Yashish, Mr.
Viplav Acharya and Mr.
Arjun Aggarwal, Advs.
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE C. HARI SHANKAR
JUDGMENT
GITA MITTAL, ACTING CHIEF JUSTICE
CM No. 2839/2018 (for directions - u/s 151 of the CPC)
1. This application, seeking directions, has been filed by the
Petitioner No. 2 - Sasan Power Ltd. (hereinafter referred to as
'SPL').
2. The factual narration, as per the writ petition, is that the
Petitioner No. 1 - Reliance Power Ltd.(hereinafter referred to as
'Reliance') is a leading private sector power generation and coal
resources company.
3. It is averred that SPL was incorporated as a 100% subsidiary
of the Power Finance Corporation for the purpose of setting up and
developing a 3960 MW Ultra Mega Power Project i.e. the Sasan
Ultra Mega Power Project (hereinafter referred to as 'UMPP' or
'Sasan UMPP') in Madhya Pradesh, India.
4. Pursuant to an International Tariff Based Competitive
Bidding, Reliance was selected as the successful bidder. The entire
shareholding of the Power Finance Corporation in SPL stood
transferred to Reliance.
5. SPL - petitioner no.2 is stated to be supplying power at the
most competitive levelized tariff of Rs. 1.196 per kWh to 14
Distribution Companies (Discoms) in 7 states with a population of
nearly 42 Crore people.
6. It appears that pursuant to a notification issued by the
Respondent No.3 -Ministry of Coal, Union of India, being
notification no. 956 [S.O. 1230 (E)] dated 7 th May, 2015, the
respondents inter alia withdrew/cancelled the Allocation Letter
No. 13016/04/2006-CA-I dated 26th October, 2006 allocating the
Chhatrasal coal block to SPL for the Sasan UMPP as well as
Gazette Notification No. 335 [S.O. No. 397(E)] dated 17 th
February, 2010 which permitted the surplus quantity of coal upto a
maximum of 9 Million Metric Tons per annum (hereinafter
'MMTA') from the coal mines of Moher, Moher-Amlohri and
Chhatrasal for the 3960 MW thermal plant owned and managed by
Chitrangi Power Pvt. Ltd, a wholly owned subsidiary of Reliance.
7. As a consequence, the respondent no. 3 vide a subsequent
letter dated 3rd June, 2015 inter alia directed SPL to submit a
revised mining plan for Moher and Moher-Amlohri Extension coal
mines.
8. It is submitted that before the submission of RFP bids, there
was a clear representation by the respondents that 100% equity of
SPL would be transferred to the successful bidder. It is averred that
at such time, SPL had allocation of three coal blocks: Moher,
Moher-Amlohri Extension and Chhatrasal, having total reserves of
760 Million MT and that the bid was based on these
representations that these mines have been allocated to SPL and
will be available for the UMPP.A sum of Rs. 25,172 Crore (as on
31st March, 2015) is stated to have been invested by Reliance in
setting up the project.
9. The writ petition makes the following prayers:
"a) Issue a Writ of mandamus or any other appropriate
writ, order or direction, directing the Respondent No. 2, the
entity which sold the entire equity shareholding of Petitioner
No. 2 to Petitioner No. 1, to purchase the entire
shareholding in Petitioner No. 2, along with all its assets
and liabilities, from Petitioner No. 1 for an amount equal to
aggregate of: (i) the investments, loaned and advances made
by Petitioner No. 1 in/to Petitioner No. 2 and (ii) the loss of
return/profit calculated at 16% per annum on a post-tax
basis, on such investments, loans and advances till their
receipt in full by Petitioner No. 1.
In the alternative,
Issue a writ of certiorari or any other writ, order or
direction to quash the Notification dated 7.5.2015 of
Respondent No. 3 and letter dated 3.6.2015 of Respondent
No. 2 as being arbitrary, illegal, invalid and unsustainable
in law..."
10. Notice was issued in the Writ Petition on 4th August, 2015
and counter affidavits have been filed by all the respondents.
11. It is apposite to advert to the order passed by this court on
12th February, 2016 which notes the purported reasoning for
issuance of the impugned notifications as well as the request by the
petitioner, for enhanced requirement of Coal from the mines,
which had been espoused in the form of an application, in the
following terms:
"1. This petition has been filed aggrieved by two
notifications dated issued by the Government of India,
Ministry of Coal purportedly on the basis of the decisions of
the Supreme Court in W.P.(Criminal) Nos.120 of 2012 and
etc. [Manohar Lal Sharma vs. Principal Secretary & Ors.
(2014) 9 SCC 516; (2014) 9 SCC 614]
2. The said two notifications are (i) Notification dated
07.05.2015 withdrawing Chhatrasal Coal Block, which was
earlier allotted in favour of the petitioner No.2 and (ii)
Notification dated 03.06.2015 deciding to reduce the mine
capacity of the petitioner No.2 from 20 MTPA to 16 MTPA
and calling upon the petitioner No.2 to submit the revised
mining plan of 16 MTPA making it clear that till the revised
mining plan is approved by the Ministry of Coal, the
requirement shall not be beyond 16 MTPA from Moher &
Moher Amlohri Extension Coal Blocks.
3. One of the contentions in the petition is that the impugned
notification dated 03.06.2015 was issued without giving an
opportunity to the petitioners to make their representation. It
is also specifically pleaded that though the petitioners
submitted a detailed representation dated 10.06.2015
explaining the rationale and necessity of maintaining the
ability of the petitioner No.2 to mine coal from the Moher &
Moher Amlohri Extension Coal Blocks as per the approved
mine plan and requesting to withdraw the notification dated
03.06.2015 followed by another representation dated
16.06.2015, the respondents failed to consider.
4. During the course of hearing, it is suggested by Sh.Sanjay
Jain, the learned ASG that since the representations of the
petitioners are yet to be considered, instead of this Court
going into the various technical issues involved in the case,
it would be appropriate to allow the respondents to consider
the representations of the petitioners and take an
appropriate decision. Sh.P.Chidambaram, the learned
senior counsel appearing for the petitioners has also
consented for the same, however requested that the
consideration by the respondents may be within a time frame
since Sasan Ultra Mega Power Project has already
consumed 12.21 MT of coal till 31.12.2015 and it is likely to
exceed 16 MT coal requirement by the end of February,
2016.
5. In the circumstances, we consider it appropriate to direct
as under:
(i) The petitioners are permitted to submit a
compendium of documents together with additional
documents if any before the respondents 1 & 3 within
three days from today. The learned senior counsel
appearing for the petitioners undertakes that the same
would be submitted on or before 16.02.2016 without
fail.
(ii) Thereafter, the Ministry of Coal/respondent No.3
in consultation with the Ministry of Power/respondent
No.1 shall consider the request of the petitioners vide
their representations dated 10.06.2015 and
16.06.2015 and take an appropriate decision in
accordance with law on or before 15.03.2016 after
giving an opportunity of being heard to the
petitioners.
(iii) Such decision shall be communicated to the
petitioners on or before 18.03.2016.
(iv) The consideration of the representations of the
petitioners shall be confined only to two coal blocks,
viz. Moher & Moher Amlohri Extension.
(v) The consideration by the respondent Nos.1 and 3
in terms of this order shall be without having regard
to the pendency of the present writ petition and
without prejudice to the rights and contentions of both
the parties.
(vi) The petitioners are at liberty to approach this
Court for appropriate directions in the meanwhile, in
case necessity thereof arises.
RENOTIFY ON 21.03.2016.
xxx xxx xxx"
12. It appears that, pursuant to the above order, vide a letter No.
13016/16/2008-CA-I (Part-III) dated 15th March, 2016 the Ministry
of Coal, inter alia, permitted SPL to produce upto 17.2 MMTA of
Coal from Moher & Moher-Amlohri Extension coal blocks for the
year 2015-16 and stipulated that for the year 2016-17 onwards any
permission for producing more than 16 MMTA of coal would be
considered after verification of figures.
13. Objections were filed by SPL to the decision and seeking
removal of the conditions imposed on production beyond 16 MTA
of Coal from the Moher & Moher-Amlohri Extension coal mines.
14. The Ministry of Coal, vide OM No. F.No.CA-
13016/08/2016-CA-I dated 27th April, 2016 formed an Inter-
Ministerial Committee under the Chairmanship of Chairman,
Central Electricity Authority to examine and recommend on the
issue of requirement of coal for the Sasan UMPP.
15. Thereafter, vide its letter no. 13016/08/2016-CA-I dated 3rd
November, 2016, the Ministry of Coal informed SPL as follows:
"4. The recommendation of the Committee has been
accepted by the Competent Authority in the Government.
Accordingly, M/s Sasan Power Ltd. is directed to meet the
coal requirement of 16 MTPA as base case and cap to 17
Million Tonnes in the year depending on highest PLF from
the coal produced from Moher and Moher Amlohri Extn.
coal blocks allocated for Sasan UMPP".
(Emphasis in Original)
16. SPL thereafter, wrote a letter dated 20th December, 2016,
replying to letter dated 3rd November, 2016 pointing out inter alia
(i) that the Sasan UMPP required 19-20 MMTA based on relevant
parameters; (ii) that the restriction in coal production from captive
blocks allocated to UMPPs was in violation of judgment rendered
on 25th August, 2014 by the Supreme Court of India as well as the
governing legal framework; (iii) that the imposition on such
restriction not only destroyed the basis of allocation of captive coal
mines but also hindered the ease of doing business. SPL
subsequently wrote letters requesting the respondent to allow coal
production up to 17.8 MMTA in 2017-2018 to ensure continuity of
coal production and to have reasonable coal stock to meet
exigencies of the monsoon season.
17. Vide a letter dated 9th February, 2017 the Ministry of Coal
reiterated its stand made on 3rd November, 2016. Consequently,
having reached the coal production level of 17 MMTA, on 17 th
March, 2017, SPL stopped coal production from Moher and
Moher-Amlohri Extension coal blocks. As the production stopped,
it is contended that SPL had to meet the coal requirement for the
Sasan UMPP from its coal stock for the remaining period in 2016-
17, as a result of which the closing stock of coal in 2016-17 stood
at only 0.73 MMT as against 1.25 MT which was the reasonable
level of coal stock required to meet any exigencies.
18. On 6th& 28th December, 2017, SPL apprised the Ministry of
the requirements of the Sasan UMPP for 2017-18 and requested to
allow coal production upto atleast 19 MMT in 2017-18 to ensure
continuity of operations of coal production and generation of
power by the Sasan UMPP and to maintain the level of coal stock.
19. On 3rd January, 2018 the Central Electricity Authority sent a
letter to SPL seeking data on certain parameters for 2015-16, 2016-
17 and 2017-18 to evaluate coal requirements of the Sasan UMPP.
The letter was replied to by SPL on 12th January, 2018.
20. Thereafter, the present application was moved on 19th
January, 2018 by SPL submitting that, as on 18th January, 2018, the
coal production from the two mines had reached 14.48 MMT; at
that rate the cap of 17 MMT as imposed by the letter dated 3rd
November, 2016 would be reached by end of February, 2018;
therefore, for the remainder of the period in the year 2017-18
(which expires on 31st March, 2018), SPL would have to shut down
the Sasan UMPP leaving 14 Discoms in 7 states serving 42 Crore
people without round the clock power for 10 days and would result
in generation loss of almost 850 Million Units (MUs) impacting
revenues of SPL by almost Rs. 130 Crores. It was also submitted
that this would also force the 14 Discoms to buy power 2-3 times
costlier rates which would entail a loss of almost Rs. 200 Crores to
them which would be adverse to public interest.
In view of the above averments, it was prayed that SPL be
permitted to produce atleast 18 MMTA for 2017-18 for the Sasan
UMPP.
21. We had issued notice on this application on 30th January,
2018. In the hearing fixed on 7th February, 2018 we were informed
that a meeting stood convened under the Chairmanship of the
Chairman, Central Electricity Authority regarding the prayer of
SPL for extraction of additional quantity of coal and that the
petitioners had been invited to participate in this meeting.
22. On 27th February, 2018, we were informed by Mr. Sanjeev
Narula, ld. CGSC that the Ministry of Coal had taken an interim
decision dated 26th February, 2018 allowing SPL to produce 18
MMT of Coal for 2017-18. A copy of the order dated 26th
February, 2018 bearing No. CA1-13016/8/2016-CA1 was handed
over, relevant portion whereof reads thus:
"3. To resolve the issue, the above said request of RPL
was placed before the Committee constituted under the
chairmanship of Chairperson, Central Electricity Authority
having members from Ministry of Power, Ministry of Coal,
Coal Controller's Organization and CMPDIL, for
formulation of policy on use of coal by M/s Sasan Power
Ltd. from the allocated coal blocks. The Committee held
meetings on 07.02.2018 and 13.02.2018 wherein
representatives of RPL were also invited. The committee
after and due deliberations of the issue furnished its
recommendations to the Government. The committee, inter
alia, has recommended that an upper cap of 18 MT may be
kept on production of coal by SPL for the year 2017-18 and
this would be only a temporary dispensation granted for
the year 2017-18 only, as a one-time exception, and would
not be quoted as a precedence for the year 2018-19 or
thereafter. The committee also directed SPL to make all out
efforts to reduce the moisture content. Data on moisture
content would be shared on monthly basis with CEA. The
committee will review the facts on moisture content on issue
of SPL after 6 months.
4. The recommendations of the committee were
submitted to the competent authority in the Government.
Accordingly, one time permission is granted to M/s Sasan
Power Limited to produce up to 18 MT of coal for the year
2017-18 as an exception. M/s SPL is also directed to
improve the quality of mining as pointed out by CMPDIL
during deliberations of IMC."
(Emphasis supplied)
23. A reply stands filed by the Ministry of Coal, to the present
application. The stand of the Government in paras 19-25 deserves
to be extracted hereunder, which is as follows:
"19. Deliberating on assessment of coal requirement for
2017-18, IMC noted that coal consumption upto 31/01/2018
was 15.02 MT as per data provided by SPL. It was further
noted that available coal stock was 0.87 MT as on
31/01/2018. PLF for the month of January was 99.8% and
similar PLF was expected for the next two months. At 99%
PLF, coal consumption for January was 1.56 MT. It was
assessed that at this rate approx. 3 MT more will be required
for the months of February and March 2018. Thus, total
requirement of coal by SPL was found to be approx. 18 MT
for 2017-18.
20. Accordingly, after deliberations on the issues raised
by applicant herein based upon whole consumption data
provided by SPL, production and dispatch figures, current
and projected PLF, the committee concluded that the
production of a maximum 18 MT may be allowed for 2017-
18, as an exception keeping in view the short time left for
end of the year and directions of the Hon'ble Delhi High
Court to decide the matter by 14.02.2018.
21. The committee recommended that an upper cap of 18
MT may be kept on production of coal by SPL for the year
2017-18. This would be only a temporary dispensation
granted for the year 2017-18 only, as a onetime exception,
and would not be quoted as precedent for the year 2018-19
or thereafter. The recommendations of the committee, as
accepted by the Government, regarding coal requirement of
16 MTPA as base case and cap to 17 MT in the year
depending on higher PLF shall remain valid for 2018-19
and after.
22. It is submitted that SPL was also directed by the
committee to make all out efforts to reduce the moisture
content. It was further directed that the data on moisture
content would be shared on monthly basis with CEA. It was
decided that the committee will review the facts on moisture
content issue of SPL after 6 months. A copy of the record
notes of the meetings of IMC is annexed herein as
Annexure-1.
23. It is humbly submitted that the recommendations made
by IMC was further deliberated by the Ministry of
Coal/answering Respondent and vide letter dated
26.02.2018, onetime permission has been granted to M/s
Sasan Power Limited to produce up to 18 MT of coal for the
year 2017-18 as an exception. M/s SPL is also directed to
improve the quality of mining as pointed out by CMPDIL
during deliberations of IMC. A copy of letter dated
26.02.2018 is annexed herewith as Annexure-2.
24. It is reiterated that the requirement of coal for 2017-
18 has been assessed to be around 18 MTPA. It is further
submitted that as per the data relied upon by the applicant
themselves, the requirement of SPL for 2017-18 comes
around 18 MTPA only. Accordingly, it is submitted that the
permission to produce 18 MTPA along with the existing
stock held by applicant is sufficient to meet the requirements
for 2017-18 as well as any exigency arising in the future.
25 It is further submitted that it has been decided with
the approval of the competent authority that the above said
committee will continue to monitor, from time to time, the
technical issues involved in the request of Reliance Power
Limited (RPL)/ Sasan Power Limited (SPL) as a standing
committee and Coal Controller's Organization (CCO) will
monitor the use of coal produced from Moher and Moher
Amlohri Extn. Coal Blocks for Sasan UMPP and report on
any diversion, if any, by SPL/RPL of this coal in other power
projects/commercial exploitation, jointly in consultation with
CEA."
(Emphasis by us)
24. We have heard Mr. P Chidambaram, ld Senior Counsel for
the Petitioners and Ms. Maninder Acharya. ld. ASG instructed by
Mr. Sanjeev Narula, ld. CGSG for the Union of India.
25. As evident from the above narration, the notification dated
3rd June, 2015, issued by the respondents notifying the decision
inter alia to reduce mine capping of SPL from 20 MMTA to 16
MMTA and calling upon SPL to submit a revised mining plan of
16 MMTA making it clear that till the revised mining plan is
approved by the Ministry of Coal, the requirement shall not be
beyond 16 MMTA from the Moher and Moher Amlohri Extension
coal blocks is the matter of substantive challenge in the writ
petition.
26. By way of the present application (CM No.2339/2018), SPL
has sought permission to produce at least 19 MMTA of coal from
Moher and Moher Amlohri Extension coal mines during the
financial year 2017-18. Prima facie, grant of the prayer made in
this application would tantamount to the grant of prayer made in
the writ petition.
27. We also find that so far as the request of the petitioner to
permit increase of the cap for the coal mining is concerned, the
Ministry has been taking considered decisions.
28. Vide a letter dated 3rd November, 2016, SPL was directed to
meet the coal requirement of 16 MMTA as a base case and the
maximum was capped at 17 MMTA per annum depending on
higher PLF from the coal produced from the said coal blocks from
Sasan UMPP. As noted above, we have been informed that at such
capping, Sasan UMPP as well had a closing stock of 0.73 MMT of
coal in 2016-17.
29. A similar request of the petitioner no.2 for the year 2017-18
was also considered by the Ministry of Coal, which had granted
one time permission to SPL to produce up to 18 MMTA of coal for
the year 2017-18, as an exception.
30. In para 22 of the reply filed to the present application on
behalf of the Government of India, it has been clearly stated that
SPL was directed by the Committee to make all out efforts to
reduce the moisture content and that data in this regard should be
shared on monthly basis with the Committee. It is stated that the
Committee would review the case on moisture content issue of the
SPL after six months. This was to be undertaken by the
respondents and placed before the committee. The reply further
states that the Committee would also monitor the use of coal
produced from the Moher and Moher Amlohri Extension coal
blocks of the Sasan UMPP from time to time on request of
Reliance and SPL.
31. A monthwise coal production; coal consumption; gross
generation; PLF; specific coal consumption and coal stock data
from the Sasan UMPP for the financial year 2017-18 (till 20th
March, 2018) has been placed before us which discloses inter alia
the following information :
Month-wise Coal Production, Coal Consumption, Gross Generation, PLF and
Specific Coal Consumption data for Sasan UMPP for FY 2017-18 (till 20th March 2018)
S.N Month Opening Coat Coal Closing Coal Gross PLF (%) Specific Coal
Coal Production Consumption Stock on the Generation Consumption
Stock on (Million at Power last day of (Million (Kg/KWh)
first day Tonnes) Plant the months Units)
of the (Million (Million
month Tonnes) Tonnes)
(Million
Tonnes)
1 Apr-17 0.73 1.25 1.55 0.43 2,734 95.9% 0.57
2 May-17 0.43 1.68 1.39 0.72 2,516 85.4% 0.55
3 Jun-17 0.72 1.46 1.32 0.85 2,281 80.0% 0.58
4 Jul-17 0.85 1.47 1.63 0.69 2,646 89.8% 0.61
5 Aug-17 0.69 1.67 1.39 0.98 2,363 80.2% 0.59
6 Sep-17 0.98 1.34 1.52 0.80 2,626 92.1% 0.58
7 Oct-17 0.80 1.54 1.51 0.83 2,669 90.6% 0.56
8 Nov-17 0.83 1.17 1.56 0.45 2,842 99.7% 0.55
9 Dec-17 0.45 1.91 1.49 0.87 2,763 93.8% 0.54
10 Jan-17 0.87 1.65 1.66 0.86 2,941 99.8% 0.57
11 Feb-17 0.86 1.66 1.39 1.14 2,517 94.6% 0.55
12 Mar-18 1.14 1.19 1.04 1.29 1,888 99.3% 0.55
(Till 20th
Mar (As on 20th
2018) Mar 2018)
Total FY 18.00 17.44 30,786 91.5% 0.57
2017-18
(Till 20th
Mar
2018)
32. For SPL, Mr. P. Chidambaram, ld. Senior Counsel has
argued at great length that there is no allegation at all against the
petitioners that the coal mined from the mine in question is being
misused. It has also been contended that the figures of the
previous year show that so far as closing stock is concerned, for the
year 2015-16, only 0.66 MMT of coal remained while for the year
2016-17, only 0.73 MMT had remained. It was therefore,
submitted that the available coal supply for power generation was
being permitted to reach critical stages so much so that there was a
good chance that the power production may have to be shut down
for want of coal. Fortunately, such a situation did not come in the
present year.
33. Another grievance expressed on behalf of the petitioner is
that the present is the only instance of a mine with a cap of the
maximum coal, which could be mined.
This is a matter which has to be considered on the main writ
petition. It is not a matter which could be considered for grant of
the interim prayer.
34. On behalf of the respondents, Ms. Maninder Acharya, ld.
Additional Solicitor General has made detailed submissions. So
far as "desired requirement of closing coal stocks requirement of
1.25 metric tones" is concerned, it has been pointed out that, it has
been submitted as follows :
"About 'desired requirement of closing coal stock
requirement of 1.25 MT
(i) Revised Norms for Stocking of Coal at Thermal
Power Plants have been issued vide CEA's letter
no.CEA/Yojna/FM/1/42/20176055-6113 dated 08.11.2017
(copy enclosed).
(ii) As per the norms, the normative coal stock that is
required to be kept at pit head thermal power plants is 15
days'worth of coal consumption.
(iii) As per consumption data provided by SPL for the
year 2017-18 (April 2017 to January 2018), the average
coal consumption is 1.502 MT per month. This translates
to total normative stock requirement of 0.751 MT (for 15
days) as per CEA norms. Since this is a pithead power
plant with dedicated mine, and plant is supplied coal by a
dedicated conveyor belt, this norm would apply.
(iv) It may be seen that the normative requirement of
coal stock comes around 0.75 MT and as per the
petitioner themselves, they will have a closing stock of
0.70 MT. So there is no need to permit production of any
additional quantity of coal.
(v) Thus, the plea of stocking 1.25 MT by SPL is not
only unreasonable and not supported by its genuine
requirement, but it also goes much above the norms
stipulated by CEA for all power plants in the country.
More so, SPL has never carried 1.25 MT as closing stock
in any month. SPL's closing stock has been in the range of
0.2 to 0.3 MT at the end of each month, which is
sufficient."
35. The respondents have further explained that the Sasan
UMPP is a pithead power plant and has a dedicated coal mine.
Norms for coal stocks at power plant for which coal is supplied by
the Coal India Ltd./SCCL through linkage have been prescribed.
As there could be uncertainty in the supply of coal from the power
plant from CIL/SCCL due to various factors, power plants have
been advised to stock coal with them, to avoid shutting down of
plants.
The respondents submit that inasmuch as Sasan UMPP has a
dedicated mine where mining is done and the plant has a pithead
itself, there is no such uncertainty.
36. The respondents also oppose the request of the petitioner for
coal stocking, pointing out the property of spontaneous combustion
in coal stocks due to oxidation and heating, which has been one of
the major hazardous industry, especially keeping in view the
ongoing summers.
37. Additionally, the respondents have submitted that as per the
daily production data for March, 2018, the petitioner has produced
l.19 MMT in 15 days of March, 2018 itself. As against average
monthly production of 1.528 MMT carried out between April,
2017 to February, 2018. The respondents submit that the petitioner
has capabilities to increase the production up to level of around 2.4
MMT of coal per month. The respondents would submit that any
stock building can be done in a month prior to the monsoon and
that there was therefore, no requirement to build any coal stock at
the present itself.
38. So far as the capping at 16 MMT is concerned, the
respondents submit that their decision is premised on the
petitioner's representation. On representations for subsequent
years, the petitioner stands permitted to produce 17.2 MMT for
2015; 16-17 MMT for the year 2017-18 and 18 MMT for the year
2017-18.
39. Other than the grievance that the request are being
considered on yearly basis, premised on data and information
submitted by the petitioner, and blanket permission as has been
sought has not been granted by the government, there is no
contention that the action and any decision of the respondents are
mala fide in nature.
40. The above tabulation submitted by the petitioner reflects that
the figures of coal production as well as coal consumption and the
PLF percentage are not stationary and vary. The requests of the
petitioner are therefore, being considered by the experts in the
government premised on the above variable statistics.
41. The respondents have severely criticized the mining being
conducted by SPL pointing out that there is high moisture content
in the coal due to water not being properly pumped out. By the
letter dated 20th February, 2018, SPL has been called upon to
improve the quality of mining.
42. Inasmuch as the prayer in the application had worked itself
out before arguments in the application were made, the prayer
therein really stands infructuous. No relief as prayed for can be
granted.
43. In any case, the respondents are examining the requests for
increase in the variations in the mining cap on behalf of the
petitioner on the basis of factual disclosures made by them.
44. The application is therefore, dismissed as infructuous.
Dasti to parties.
ACTING CHIEF JUSTICE
C.HARI SHANKAR, J
JUNE 06, 2018
aj
