In Brief
Indsil Hydro Power agreed with Kerala State Electricity Board (KSEB) to construct and operate a 21 MW hydroelectric project for 30 years, after which it would be handed to the State free. The project was to be commissioned (inject power into KSEB grid) within 30 months. Although Indsil completed its installation obligations by August 2000, KSEB delayed constructing the required transmission lines, preventing power evacuation. This delay continued beyond February 2001 until June 2001. The Supreme Court held that while KSEB's delay was not deliberate, the contract implicitly required transmission-line completion within the 30-month commercial operation timeline. The Court set aside the High Court's dismissal and directed the State Government to reassess the matter fairly to remedy Indsil's grievance, without determining what specific remedy (such as deemed generation status or tariff concessions) should apply.
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