SC says no to GMR

 
A bench headed by Justice S  B Sinha disposed of the matter directing the company to approach the Karnataka High Court as a similar petition was pending before it. Mukul Rohtagi, who appeared for GMR, submitted that the state government had failed to pay even at a reduced rate of Rs 5.50 per unit and it showed the gross abuse of power by the authorities.

Breakdown

“The plant is now under breakdown and steps are being taken to put the plant back in operation shortly to comply with the direction issued under section 11,’’ said the petition filed by GMR seeking interim relief. “Whether the steep increase in naphtha prices (from Rs 23,656 per MT on 16.12.08 to Rs 35,801 per MT on 16.04.09 resulting in a loss of Rs 1.25 crore per day) changed the very basis of the direction given by the respondent (government) and entitle the petitioner to a higher rate for the supply of electricity,’’ said the petition. Anitha Shenoy, who appeared for the State government, said the petition should be referred to the High Court as a similar petition had already been referred to it by the apex court on April 1,  2009.

GMR, which has set up a power plant at a cost of Rs 800 crore, had challenged the Karnataka High Court ruling that dismissed its petition seeking quashing of the government notification of December 30, 2008, directing “all generators existing and operating in Karnataka to operate and maintain generating stations to their maximum exportable capacity and to supply power to the state grid.”