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8. In the modified scheme covered by G.O. Ms. No. 152 dated 29-1.1-1995 it was mentioned that the energy from MPPs can be supplied to identified consumers using tether APSEB's existing distribution network or setting up a dedicated transmission network after obtaining licence under Section 3 of the Indian Electricity Act, 1910.

9. The Government Order further envisages that in the event of the MPPs generating power in excess of the requirement of their consumers, the same can be purchased by the APSEB up to 15% of the capacity of the mini power plant. The APSEB may also purchase the power beyond 15% capacity at its option, without conferring any preemptive right of sale on the mini power plant.

11. The Energy Department of the Government of Andhra Pradesh informed the appellant through its letter No. l543/Pr.I/ 1/97 dated 9-7-1997 that the Government agreed to reduce the capacity of the mini power plant from 55 MW to 46-08 MW as requested by the appellant. All these events took place prior to the Reform Act coming into force and the Regulatory Commission constituted under the Reform Act.

12. The appellant and other mini power project developers could not complete the establishment of the generating units within the time stipulated by the Government since the required permission and licences from the authorities concerned could not be obtained and the Government from time to time extended time by way of revalidation of permits for completion of the projects. In the said process of revalidation, even the APSEB till 1-2-1999 and its successor APTRANSCO during the subsequent period were actively associated in the correspondence and was recommending to the Government for extension of time. A letter No. CE/IPC/411/ F&P/D.N0.805/97 dated 20-10-1997, letter No. CE/IPC/311/F&P/D.N0.708/99 dated 18-5-1999 of the Chief Engineer, APSEB are some of the letters indicating active involvement of APSEB in granting extension of the period for the construction of MPPs, including the plant of the appellant. The Government of Andhra Pradesh through its letter No. 1644/Pr.II/2001 dated 21-8-2001 granted extension of time for launching the project till 31-10-2001 and a copy of the said letter was also marked to APTRANSCO.

"APTRANSCO" means the Transmission Corporation of Andhra Pradesli Limited incorporated as a Transmission Company under the Companies Act, 1956 (Act I of 1956) and referred to in Section 13 of this Act.

20. Section 13 of the Reform Act enumerates the constitution and functions of the APTRANSCO. Under Section 13 (1), APTRANSCO is incorporated with the principal object of engaging in the business of procurement, transmission and supply of electric energy Under Section 13 (4), APTRANSCO shall undertake the functions specified in Section 13 and such other functions as may be assigned to it in the licence to be granted to it by the Commission under the Reform Act. Under Section 13(5), the APTRANSCO shall discharge such functions and duties of the APSEB. including those under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or the rules framed thereunder, as the Commission may specify in the licence, and it shall be the statutory obligation of the APTRANSCO to undertake and duly discharge the powers, duties and functions so assigned.

21. Under Section 23(1), the properties, interest in the properties, rights and liabilities of the A.P. State Electricity Board immediately before the Reform Act came into force vested with the State Government. Under Section 23(2), the above properties, rights and liabilities vested in the State Government were re-vested by the State Government in the APTRANSCO in accordance with the transfer scheme, Under Section 23(7), all debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by the APSEB shall to the extent specified in the relevant transfer scheme be deemed to be entered into by the transferee i.e., the APTRANSCO.