Assam's decision on Karbi project upheld

The Supreme Court has dismissed Bharat Hydro Power Corporation Ltd's appeal challenging its takeover by the Assam government and vesting its Rs 200 crore Karbi Langpi project in the state electricity board.

The Acquisition Act was passed because there was an inordinate delay in the completion of the project in the power-starved state.

The project was sanctioned by the Planning Commission in 1979, but it could not be completed due to litigation and changes in the contracting companies.

Earlier, the project was transferred to the National Project Construction Corporation. But the corporation also could not complete the work causing a steep escalation in cost.

Then, the state government set up a private company with the electricity board holding 11 per cent shares, Subhash Project and Marketing Ltd 40 per cent and the public holding 49 per cent shares.

Even this company could not complete the project due to alleged negligence and serious lapses. This led to litigation and arbitration. To avoid further delay, the state government, passed the acquisition law.

An apex court Bench comprising Justice Ashok Bhan and Justice SB Sinha said the central laws and the state acquisition law operated in different fields and there was no conflict between them.

The court said the state law in this case dealt with acquisition of the corporation and payment of compensation as provided in it.

It was enacted only to take over the Bharat Corporation in public interest as it could not complete the project on time.

The object was for the state to supervise the construction and achieve early completion. The central laws, on the other hand, made general provisions with regard to supply and use of electricity.

They also dealt with licencees, but in this case, the company was not a licencee. For all these reasons, the Supreme Court dismissed the appeal of the Bharat Corporation.