HC Refuses To Stall Centre's Gas Policy

The judge disposed of a writ plea filed by Independent Gas- Based Power Producers Association to frame a comprehensive policy/bring a suitable legislation with regard to energy security of India and supply of natural gas under NELP and also to declare that there was discrimination in the policy of supply of gas within the power industry in the Eastern and Western sectors.

Justice Ramesh Ranganathan in a detailed order spelt out the parameters of judicial review of policy decisions. He said that the decisionmaking process was not vitiated and no case was made out to point out that the preference given to fertilizer industry over the power sector for supply of gas was discriminatory or in violation of the fundamental rights.

The Central government which was represented by the then Additional Solicitor General Wilson had raised various preliminary objections including the question of res judicata and that there was suppression of material facts. The judge overruled the objections and went on to deal with the matter on merits.

It was argued by Niranjan Reddy Counsel for the petitioner that a reverse pro rata method of allotment of gas from the KGB basin meant that only after the quantity specified for the fertiliser industry was met that gas would be made available for the power industry.

The judge found to be prima facie discriminatory and that the factors of relevance were not considered. The judge accordingly directed the petitioners to make a detailed representation to the Central government within six weeks. He directed the Central government to dispose of the said representation within four months keeping in view the observations of the court. On the question of policy decisions the judge said “it is desirable, as a matter of good governance and administration, that, whenever policy decisions are taken, there should be a wide range of consultations including considering any representations which may have been made”.