Justice Ramesh Ranganathan of Hyderabad High Court made it clear the Court is not inclined to interfere with the policy of the Union Government regarding the order of priority of allotment of gas from KG Basin to various sectors such as fertilizer and power plants.
The Judge directed the State and Central Governments and other statutory authorities to look into the representations made by the power producers seeking gas allocation and supply on priority basis within four months.
The Court was disposing off writ petition filed by Independent Gas-based Power Producers Association and other power plants.
The petitioners contended that the gas from KG Basin was not allotted to them on priority basis but was given to fertilizer units. They wanted a direction to the Union of India to frame policy for energy security of the country. They lamented that there was no open consultation while framing policy on gas allocation.
The Justice in his 105-page judgments, after perusing the voluminous records which aware made available only to court by the Central Government, said complaint of violation of principles of natural justice cannot be made when the Government makes economic policy.
But “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.”
No positive direction for allocation of gas on priority basis was given by the Court. But the State and Central governments were directed to look into request made by petitioners and other stakeholders regarding the allocation of gas from KG basin or other places on priority basis.