Incentive tariff policy: delayed power supply by the Board could not defeat concessional tariff entitlement, with adjusted relief granted.

An industrial unit eligible under an incentive tariff policy was entitled to concessional tariff where failure to commence commercial production by the stipulated date resulted from the Electricity Board's delayed supply of power. The policy granted concessional tariff for five years from commercial production, but the delay was attributable to the Board despite the unit's reliance on the policy, allotment of power, and repeated requests for early connection. A literal reading of the timing condition was held inequitable in these circumstances. The unit was therefore entitled to concessional tariff, with the benefit limited to three years and adjusted for the period already covered by interim relief.

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Issues: Whether an industrial unit, which was otherwise eligible under an incentive tariff policy requiring commencement of commercial production between 1 January 1992 and 31 December 1996, could be denied concessional tariff when the delay in commencing production was attributable to the Electricity Board's failure to supply power in time.

Analysis: The policy and the Board's implementing order entitled new industrial units to concessional tariff for five years from the date of commercial production, subject to commencement within the stipulated period. The unit had set up the industry in reliance on the policy, had been allotted power, and had made repeated requests for early connection. The delay in supply of electricity by the Board prevented commencement of commercial production by 31 December 1996. In such circumstances, a purely literal construction of the policy would be inequitable. The proper course was to give effect to the incentive while accounting for the Board's delay and the fact that the appellant had already enjoyed interim relief.

Conclusion: The denial of concessional tariff was unjustified. The appellant was held entitled to concessional tariff, but only for three years instead of five, with adjustment for the period already enjoyed under interim orders.

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