Filed by minister of parliament Banwari Lal Purohit, the PIL has challenged the power purchase agreement (PPA) arguing that the cost of the project is high. It also alleges that some individuals with vested interests have backed the project. The PPA between the Maharashtra State Electricity Board (MSEB) and power company was signed in 1998.

The high court has asked the parties concerned, including MSEB and the promoters of the project, to submit their response to the allegations made by the petitioner. MSEB is likely to reply shortly.

The thermal power plant will source coal from the Central India Coal Company (Cisco), the company being set up by the same promoters to cater to the entire demand of the power project. Purohit had earlier filed a petition against the setting up of thepower project based on the captive coal company. He argued that the development of the coal mines which are located close to a defence facility are against the interests of the country and unsafe. However, the committee set up to examine the issue has okayed the coal project with some conditions.

The Bhadravati project is presently tying funds for the project and industry sources say that though the court has not admitted the petition yet, the prospects of this happening may discourage some potential investors.

Incidentally, the Supreme Court, in a recent verdict, had directed the high courts to exercise caution in PILs challenging infrastructure projects as these cause delays in the plans. In turn, this inconveniences the public and affects industrial and economic development.

The apex court also ruled that PILs and private parties obtaining stay on projects should be made liable for cost escalations if the petition fails in the court. The verdict is primarily intended to avoid frivolous cases.

Whileindustry experts have welcomed this decision, they believe that quick decisions in these matters are also important. The merit of such petitions should be decided quickly because the uncertainty of the legal outcome also affects the projects.

Almost all infrastructure plans have either been delayed or not implemented due to public interest litigations filed by individuals/organisations. They have often challenged viability of projects on the basis of environment protection, high costs etc.