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2019 (3) TMI 198 - DELHI HIGH COURTDisbursement of subsidy - Requisite capital investment for grant of subsidy - Special Incentive Package - refuse disbursement of subsidy on the ground that the petitioner’s viability in question - HELD THAT:- Since there appears to be no dispute that the petitioner had defaulted in payment of liabilities towards lease rentals related to the assets, which are capitalized as investment, the decision that the petitioner has not made the requisite investment cannot be faulted. The respondents were entitled to verify the capital investments made by the petitioner and since the petitioner had failed to provide the necessary documents evidencing such investments, the same could not be considered by the respondents. This Court finds no infirmity with this decision. If the investment of ₹ 96.95 crores is excluded, the NPV of the investments made would fall within the threshold limit of ₹ 1000 crores and the petitioner would not be entitled for any subsidy under the scheme. The subsidy was required for sustaining the project and not necessarily incurring capital expenditure. More importantly, there is no material to indicate that the subsidy would be used for capital investment as originally envisaged that the same would result in the petitioner meeting the criteria of capital investment (NPV of ₹ 1000 crores). The decision of the respondents to refuse disbursement of subsidy on the ground that the petitioner’s viability in question also cannot be faulted. Plainly, the object of the Scheme was to support eligible projects. In the given set of facts where the viability of the petitioner’s project is itself under serious question, the respondent cannot be expected to disburse any subsidy – which was envisioned for long term benefits. The opening paragraph of the Scheme indicated that the same was in expectation of return by way of contribution to the GDP of the country. Petitioner could not dispute that even if the NPV was calculated on the basis as accepted in Indosolar (supra), the NPV of the petitioner’s capital investment would not exceed the threshold of ₹ 1000 crores if the outstanding lease rentals and the capital expenditure amounting to ₹ 96.95 crores was excluded from such calculation. - Petition dismissed.
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