NEW DELHI: Narrowing down constitutional court’s role in interfering in state’s decision to enter into power purchase agreements, Supreme Court on Monday ruled that high courts can interfere only when larger public interest is vitiated by signing of PPAs that would cast burden on consumers of electricity.
Setting aside a Rajasthan HC order asking the state to sign PPAs with bidders who quoted higher tariff for units of electricity, SC said the HC “could not have issued a mandamus to the instrumentalities of the state to enter into a contract, which was harmful to public interest.” “If power is to be procured by procurers at rates quoted by MB Power, which is even higher than rates by SKS Power, the State would have been required to bear financial burden in thousands of crore rupees, which would have passed on to consumers,” Justice Gavai said.”As such…the mandamus issued by HC is issued by failing to take the consumers’ interest.