HC denies stay on water supply to India Bulls' plant

In a relief to Indiabulls Power Ltd, the Bombay High Court today refused to grant stay on water supply to its thermal power plant project in Amravati district of Maharashtra's Vidharba region.

A division bench of chief justice Mohit Shah and justice N M Jamdar was hearing a public interest litigation filed by Vidharba Backlog Removal and Development Committee challenging the May 2011 water supply agreement signed between Maharashtra government and Indiabulls Power Ltd, formerly known as Sophia Power.

As per the agreement, the government had agreed to diverse 87.06 million cubic meter (mcm) water from the Upper Wardha dam project to the thermal power plant. The PIL, however, challenges this, claiming that the diversion will result in 23,219 hectares of land of over 25,000 farmers not getting irrigated.

According to the PIL, the state government was using funds provided by the central government for people of Vidharba region only for irrigation and not for other purposes.

The petition states that a minimum of 328 mcm water will have to be provided to the farmers for irrigation. Advocate Prakash Lad, appearing for the government, told the court that since there have been adequate rains this year, the government was in a position to provide 328 mcm water to the farmers and also supply 87.06 mcm water to the thermal power plant.

Accepting the statement, the court said it does not see any need to restrain the government from implementing its water supply agreement with the thermal power plant company. The state government had on December 17, 2007, permitted Indiabulls Pvt Ltd, which was formerly known as Sophia Power Company Ltd, to set up a 2,640 mega watt power project in Amravati.