Section 4A - Directions by Central Government to the Authority
[4A. Directions by Central Government to the Authority - In the discharge of its functions, the Authority shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.
- If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.]
Section 4B - Power of Central Government to make rules
- The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.
- In particular and without prejudice to the generality of the foregoing powers, such rules may provide for alt or any of the following matters, namely: ?
- the functions and duties of the Authority and the manner in which such functions and duties shall be exercised and performed, under sub-section (1) of section 3;
- the terms and conditions of service of the Chairman and other members of the Authority (including the allowances and fees payable to members, but not including the salaries and allowances payable to the Chairman and other full-time members, of the Authority) under sub-section (4A) and sub-section (4B) of section 3;
- any other matter which is required to be, or may be, prescribed by the Central Government.
- Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
Section 4C - Power of Authority to make regulations
[(1)] The Authority may? [by notification in the Official Gazette,] make regulations, not inconsistent with the provisions of this Act and the rules made by the Central Government thereunder, to provide for all or any of the following matters, namely: - - summoning and holding of meetings of the Authority, the times and places at which such meetings shall be held, the conduct of business thereat and the number of members required to constitute a quorum;
- any other matter arising out of the functions of the Authority under this Act for which it is necessary or expedient to make regulations.]
[(2) The Central Government shall cause every regulation made under this section to be laid, as soon as after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session imme?diately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall he without prejudice to the validity of anything previously done under that regulation.] Chapter III - STATE ELECTRICITY BOARDS, GENERATING COMPANIES, STATE ELECTRICITYCONSULTATIVE COUNCILS AND LOCAL ADVISORY COMMITTEES
CHAPTER III?
[STATE ELECTRICITY BOARDS, GENERATING COMPANIES, STATE ELECTRICITY CONSULTATIVE COUNCILS AND LOCAL ADVISORY COMMITTEES]
Section 5 - Constitution and composition of State Electricity Boards
- The State Government shall, as soon as may he after the issue of the notification under sub-section (4) of section 1, constitute by notification in the Official Gazette a State Electricity Board under such name as shall be specified in the notification.
- The Board shall consist of not less than three and not more than seven members appointed by the State Government.
[***] [(4) Of the members- - one shall be a person, who has experience of, and has shown capacity in, commercial matters and administration;
- one shall he an electrical engineer with wide experience; and
- one shall be a person who has experience of accounting and financial matters in a public utility undertaking, preferably an electricity supply undertaking.]
(5) One of the members possessing any of the qualifications specified in sub-section (4) shall he appointed by the State Government to be the Chairman of the Board.
(6) A person shall be disqualified from being appointed or being a member of the Board if he is? [***] a member of? [Parliament] or of any State Legislature or any local authority. (7) No act done by the Board shall be called in question on the ground only of the existence of any vacancy in, or any defect in the constitution of, the Board.
Section 6 - Inter-State agreement to extend Boards jurisdiction to another State
- Subject to the provisions of this section, the Government of any State may, after it has issued a notification under sub-section (4) of section 1, in lieu of constituting a Board under section 5 enter into an agreement with the Government of a contiguous State to provide that the Board constituted for the latter State shall exercise the functions of a Board under this Act in the former State.
- Subject to such modifications (being of a character not affecting the general operation of the agreement) of the terms of the agreement as may from time to time be agreed upon by the State Government concerned, an agreement entered into under this section shall be for a period of not less than twenty-five years but may be deter?mined earlier by mutual consent.
- An agreement under this section may-
- make such financial arrangements between the participating State Govern?ments as may be necessary for the purposes of the agreement;
- provide for consultation between the participating State Governments either generally or with reference to particular matters arising under this Act;
- generally make such incidental, supplementary or ancillary provisions, not inconsistent with this Act, as may be deemed necessary or expedient for giving effect to the agreement.
Section 7 - Effect of inter-State agreement
Where an agreement is entered into under section 6, the participating State Governments shall, by notification in the Official Gazette, declare a date on which the agreement shall come into force, and on and after that date-
- the Board constituted for the one State shall have all the powers and duties of a Board under this Act in respect of both States as if they constituted a single State;
[(b) reference in this Act to- - the State,
- the State Electricity Consultative Council, and
- the State Legislature, shall, unless the context?otherwise?requires, be construed as references respectively to-
- both States,
- where more than one State Electricity Consultative Council has been constituted under section 16, to all such Councils, and
- the Legislatures of both States;]
(c) the provisions of section 60 in relation to the assumption by the Board of the rights and liabilities of the State Government arising before the first constitution of the Board shall apply to the assumption by the Board of the?rights?and liabilities of the Government of the State to which the exercise of its functions under this Act is extended under the agreement, as if in that section for the words "before the first constitution of the Board" there were substituted the words and figure "before the date on which the agreement under section 6 came into force".
Section 8 - Term of office and conditions for re-appointment of members of the Board
[8. Term of office and conditions for re-appointment of members of the Board The Chairman and other members of the Board shall hold office for such period, and shall be eligible for re-appointment under such conditions, as may be prescribed.]
[STATE AMENDMENTS
KARNATAKA
[In Section 8 - after the words "the Chairman and other members of the Board shall", a comma and the words ", subject to the pleasure of the State Government" shall be and shall be deemed always to have been inserted;
- at the end, the following shall be inserted, namely:-
"They shall exercise such powers and perform such functions and be paid such remuneration and allowances and be governed by such conditions of service as the State Government may, from time to time, by general or special order, determine.".
[In Section 8 of the (Supply) Act, 1948 (Central Act 54 of 1948) (hereinafter referred to as the principal Act),-- - after the words The Chairman and other members of the Board shall", a comma and the words "subject to the pleasure of the State Government" shall be and shall be deemed always to have been inserted;
- at the end, the following shall be inserted, namely:--
"They shall exercise?such?powers and perform such functions and be paid such remuneration and allowances and be governed by such conditions of service as the State Government may, from time to time, by general or special order, determine.]
?
Section 9 - Members not to hold interest in certain concerns
- A member of the Board shall, prior to his appointment, give to the State Government intimation of, and shall, before taking charge of his office, sell or divest himself of, any interest which he may have for his own benefit whether in his own name or otherwise, in any firm or company carrying on the business of supplying electricity or any fuel for the generation of electricity, or of the manufacture, sale or hire of machinery, plant, equipment, apparatus or fittings for the generation, transmission, distribution or use of electricity, or any interest in the managing agency or shares or securities of any such company; and it shall not be lawful for a member of the Board, so long as he holds office, to acquire or purchase any such interest in any such firm or company and if he, under any will or by succession or gift becomes entitled for his own benefit to any such interest, he shall sell the same within three months after becoming so entitled thereto; and he shall also, within three months, sever any connection he may have and cease to have any interest, direct or indirect, in any such concern.
- Nothing contained in sub-section (1) shall prevent a member from acquiring or holding any share or interest in any firm or company other than a firm or company mentioned in sub-section (1):
Provided that if the Board has entered into, or is about to enter into any contract or agreement with any such firm or company in which a member holds any share or interest, he shall disclose the fact and nature of such interest and he shall not be entitled to vote on any decision of the Board relating to such contract or agreement.
- A disclosure referred to in the proviso to sub-section (2) shall forthwith be recorded in the minutes of the Board and communicated to the State Government and the State Government may thereupon give such directions as it may deem proper.
Section 10 - Removal or suspension of members
[(1)] The State Government may sus?pend from office for such period as it thinks fit or remove from office any member of the Board who- - is found to he a lunatic or becomes of unsound mind; or
- is adjudged insolvent; or
- fails to comply with the provisions of section 9; or
- becomes or seeks to become a member of? [Parliament] or any State Legislature or any local authority; or
[(e) in the?opinion?of the State Government- - as refused to act; or
- has become incapable of acting; or
- has so abused his position as a member as to render his continuance on the Board detrimental to the interests of the general public; or
- is otherwise unfit to continue as a member; or]
(f) is convicted of?an offence involving moral turpitude.
[(2) The State Government may suspend any member pending an inquiry against him. (3) No order of removal shall be made under this section unless the member concerned has been given an opportunity to submit his explanation to the State Government, and when such order is passed, the seat of the member removed shall become vacant and another member may be appointed under section 5to fill up the vacancy.
(4) A member who has been removed shall not be eligible for re-appointment as member or in any other capacity to the Board.
(5) If the Board fails to carry out its functions, or refuses or fails to follow the directions issued by the State Government under this Act, the State Government may remove the Chairman and the members of the Board and appoint a Chairman and members in their places.]
Section 10A - Power of State Government to declare certain transactions void
[10A. Power of State Government to declare certain transactions void - The State Government may declare void any transaction in connection with which a member has been removed under sub-clause (iii) of clause (e) of sub-section (1) of section 10 after considering the report on the facts of the case made to it by a District Judge nominated by it in this behalf.
- A District Judge nominated under sub-section (1) shall, before making his report under that sub-section to the State Government in relation to any transaction, give all parties interested in the transaction a reasonable opportunity of being heard.
- Where a transaction is declared void under this section, it shall not be enforceable by any party to the transaction but the provisions of?section 65?of the Indian Contract Act, 1872, shall, so far as may be, apply to such transaction as they apply to an agreement which is discovered to be void or a contract which becomes void.
- The decision of the State Government declaring any transaction void under this section shall be final and shall not be called in question in any court.]
Section 11 - Temporary absence of members
If the Chairman or any other member of the Board is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of this appointment, the State Government may appoint another person to officiate for him and carry out his functions under this Act or any rule or regulation made thereunder.
Section 12 - Incorporation of Board
The Board shall be a body corporate by the name notified under sub-section (1) of section 5, having perpetual succession and a common seal, with power to acquire and hold property both movable and immovable, and shall by the said name sue and be sued.
Section 12A - Board may have capital structure
[12A. Board may have capital structure - The State Government may, if it consider expedient so to do, by notification in the Official Gazette, direct that the Board shall, with effect from such date as may be specified in the notification, be a body corporate with such capital, not exceeding ten crores of rupees, as the State Government may specify from time to time.
- The State Government may, from time to time, with the approval of the State Legislature, increase the maximum limit of the capital referred to in sub-section (1) to such extent as that Government may deem fit, so, however, that the increased maximum limit of capital aforesaid shall not exceed the amount representing the aggregate of the outstanding loans of the Board.
- Such capital may be provided by the State Government, from time to time, after due appropriation made by the State Legislature by law for the purpose and subject to such terms and conditions as may be determined by that Government.]
Section 13 - Authentication of orders and other instruments of the Board
All orders and decisions of the Board shall be authenticated by the signature of the Chairman or any other member authorized by the Board in this behalf, and all other instruments issued by the Board shall be authenticated by the signature of such member or officer of the Board as may in like manner be authorized in this behalf.
Section 14 - Meetings of the Board
- The Board shall hold ordinary meetings at such intervals as may be provided in the regulations; and a meeting may be convened by the Chairman at any other time for the transaction of urgent business.
- The number of members necessary to constitute a quorum at a meeting shall be such as may be provided in the regulations.
Section 15 - Appointment of staff
The Board may appoint a Secretary and such other officers and? [employees] as may be required to enable the Board to carry out its functions under this Act: [Provided that the appointment of the Secretary shall be subject to the approval of the Slate Government.] [STATE AMENDMENTS
[UTTAR PRADESH
[In Section 15 After the existing proviso, the following proviso shall be inserted and be deemed always to have been inserted, namely:
"Provided further that the Board may, by regulations, delegate its power of appointment under this section to the Chairman or any member of the Board or to any other officer or authority subordinate to it."]
Section 15A - Objects jurisdiction etc of Generating Companies
[15A.? [***] Objects, jurisdiction, etc., of Generating Companies [***] [(2) The objects of a Generating Company shall include- - establishment, operation and maintenance of generating stations and tie-lines, sub-stations and main transmission lines connected therewith;
- operation and maintenance of such generating stations, tie-lines, sub-stations and main transmission lines as assigned to it by the competent government or governments.
(3) The Generating Company shall carry on its activities within such areas as the competent government or governments, as the case may be, may, from time to time, specify in this behalf.]
[***] (5) A full-time member of the Board of Directors of a Generating Company shall be a person who has experience of, and has shown capacity in, -
- design, construction, operation and maintenance of generating stations;
- transmission and supply of electricity;
- applied economics;
- organising workers;
- industrial, commercial or financial matters; or
- administration in a Government Department or other establishment.
[***] [***]]
Section 16 - State Electricity Consultative Council
- The State Government shall constitute a? [State Electricity Consultative Council] for the State, and in cases to which sections 6 and 7 apply, the State Governments concerned shall constitute such one or more? [State Electricity Consultative Council] or Councils and for such areas as they may by agreement determine.
- The? [State Electricity Consultative Council] shall consist of? [the members of the Board and, if there are any Generating Company or Generating Companies operating in the State, one representative of the Generating Company or each of the Generating Companies, to be nominated by the Generating Company concerned,] and such other persons being not less than? [eight] and not more than fifteen as the State Government or the State Governments concerned may appoint after consultation with such representatives or bodies representative of the following interests as the State Government or the State Governments concerned thinks or think fit, that is to say, local self-government, electricity supply industry, commerce, industry, transport, agriculture,? [labour employed in the electricity supply industry and consumers of electricity], but so that there shall he at least one member representing each such interest in the Council.
- The Chairman of the Board shall be ex officio Chairman of the? [State Elec?tricity Consultative Council].
- The? [State Electricity Consultative Council] shall meet at least once in every three months.
- The functions of the? [State Electricity Consultative Council] shall be as fol?lows: -
- to advise? [the Board and the Generating Company or Generating Compa?nies, if any, operating in the State] on major questions of the policy and major schemes;
- to review the progress and the work of? [the Board and the Generating Company or Generating Companies, if any, operating in the State] from time to time;
- to consider such other matters as? [the Board or the Generating Company or Generating Companies, if any, operating in the Slate] may place before it; and
- to consider such matters as the Stale Government may by rules prescribe.
[(6) The Board shall place before the State Electricity Consultative Council the annual financial statement and supplementary statement, if any, and shall take into consideration any comments made on such statement in the said Council before submitting the same to the State Government under section 61.]
Section 17 - Local Advisory Committee
- The State Government may from time to time constitute for such areas as it may determine Local Advisory Committees, con?sisting of such number of persons as it may think fit in each case and on such terms and conditions as may be prescribed.
- The Board may if it thinks fit consult the Local Advisory Committees concerned on any business coming before it, and shall so do in respect of such business as the State Government may by general or special order in this behalf specify or when required by the regulations so to do.
- The Chairman of the Board or such other member of the Board as he may nominate in this behalf shall be ex officio Chairman of a Local Advisory Committee.
- Local Advisory Committees shall meet at such intervals as may be prescribed, and for the transaction of urgent business on such other occasions as the Chairman of the Board may require.
- The number of members necessary to constitute a quorum at a meeting of a Local Advisory Committee shall be such as the State Government when constituting the Committee may specify.
Chapter IV - POWERS AND DUTIES OF STATE ELECTRICTY BOARDS AND GENERATING COMPANIES
CHAPTER IV?
[POWERS AND DUTIES OF STATE ELECTRICITY BOARDS AND GENERATING COMPANIES]
Section 18 - General duties of the Board
[18. General duties of the Board Subject to the provisions of this Act, the Board shall be charged with the following general duties, namely: -
- to arrange, in co-ordination with the Generating Company or Generating Companies, if any, operating in the State, for the supply of electricity that may be required within the State and for the transmission and distribution of the same in the most efficient and economical manner with particular reference to those areas which are not for the time being supplied or adequately supplied with electricity;
- to supply electricity as soon as practicable to a licensee or other person requiring such supply if the Board is competent under this Act so to do;
- to exercise such control in relation to the generation, distribution and utilisation of electricity within the State as is provided for by or under this Act;
- to collect data on the demand for, and the use of, electricity and to formulate perspective plans in co-ordination with the Generating Company or Generating Companies, if any, operating in the State, for the generation, trans?mission and supply of electricity within the State;
- to prepare and carry out schemes for transmission, distribution and generally for promoting the use of electricity within the State; and
- to operate the generating stations under its control in co-ordination with the Generating Company or Generating Companies, if any, operating in the State and with the Government or any other Board or agency having control over a power system.]
Section 18A - Duties of Generating Company
[18A. Duties of Generating Company - Subject to the provisions of this Act, a Generating Company shall he charged with the following duties, namely: -
- to establish, operate and maintain such generating stations and tie-lines, sub?stations and main transmission lines connected therewith, as may be required to be established by the? [competent government or governments] in relation to the Generating Company;
- to operate and maintain in the most efficient and economical manner the generating stations, tie-lines, sub-stations and main transmission lines, assigned to it by the? [competent government or governments] in co-ordination with the Board or Boards, as the case may be, and the Government or agency having control over the power system, if any, connected therewith; and
- to carry out, subject to the provisions of section 21, detailed investigations and prepare schemes, in co-ordination with the Board or Boards, as the case may be, for establishing generating stations and tie-lines, sub-stations and transmission lines connected therewith, in such manner as may be specified by the Authority.
- Without prejudice to the generality of its duties under section 18, the Board shall, until a Generating Company begins to operate in any State, perform the duties of a Generating Company under this section in that State.]
Section 19 - Powers of the Board to supply electricity
- The Board may, subject to the provisions of this Act, supply electricity to any licensee or person requiring such supply in any area in which a scheme sanctioned under Chapter V is in force:
Provided that the Board shall not-
- supply electricity for any purpose directly to any licensee for use in any part of the area of supply of a hulk-licensee without the consent of the bulk-licensee, unless the licensee to be supplied has an absolute right of veto on any right of the hulk-licensee to supply electricity for such purpose in the said part of such area, or unless the bulk-licensee is unable or unwilling to supply electricity for such purpose in the said part of such area on reasonable terms and conditions and within a reasonable time, or
- supply electricity for any purpose to any person, not being a licensee for use in any part of the area of supply of a licensee without the consent of the licensee, unless-
- the actual effective capacity of the licensee's generating station computed in accordance with paragraph IX of the First Schedule at the time when such supply was required was less than twice the maximum demand asked for by any such person; or
- the maximum demand of the licensee, being a distributing licensee and taking a supply of energy in bulk is, at the time of the request, less than twice the maximum demand asked for by any such person; or
- the licensee is unable or unwilling to supply electricity for such purpose in the said part of such area on reasonable terms and conditions and within a reasonable time.
- After the Board has declared its intention to supply electricity for any purpose in any area for which purpose and in which area it is under this section competent to supply electricity, no licensee shall, the provisions of his licence notwithstanding, at any time be entitled without the consent of the Board to supply electricity of that purpose in that area.
- For the purposes of sub-section (1) "absolute right of veto" means an unqualified right vested in a licensee by virtue of any law, licence or other instrument whereby a bulk-licensee is prevented from supplying electricity in any specified area without the consent of the licensee in whom the right of veto vests.
- If any question arises under sub-section (1) as to the reasonableness of the terms or conditions or time therein mentioned, it shall he determined? [by arbitration] as provided in section 76.
Section 20 - Power to Board to engage in certain undertakings
- The Board may, in accordance with any regulations made in this behalf, manufacture, purchase, sell or let on hire on the execution of a hire-purchase agreement or otherwise, any electric machinery, control-gear, fittings wires or apparatus for lighting, heating, cooling, or motive power or for any other purpose for which electricity can or may he used, or any industrial or agricultural machinery operated by electricity, any may install, connect, repair, maintain or remove such fittings, wires, apparatus, machinery or control-gear and in respect thereof demand and take such remuneration or rents and charges and make such terms and conditions as it deems fit.
- The Board may maintain shops and show-rooms for the display, sale or hire of fittings, wires, apparatus and machinery as aforesaid, conduct displays, exhibitions and demonstrations thereof, and generally do all things, including advertising, incidental to the sale and hire of such fittings, wires, apparatus and machinery and to the promotion and encouragement of the use of electricity.
- The Board shall show separately in its accounts moneys received and expended by it in connection with any undertakings in which it engages under this section.
Section 20A - Leasing out etc of generating stations
[20A. Leasing out, etc., of generating stations The State Government may, in respect of any generating station owned by it (including transmission lines and other works connected therewith) make arrangements with the Board or a Generating Company for its operation and maintenance on such terms and conditions as may be agreed upon between the State Government and the Board or the Generating Company, as the case may be.]
Section 21 - Powers of Board in relation to water-power
[The Board or a Generating Company may], with the previous approval of the State Government, take such measures as? [in the opinion of the Board or the Generating Company, as the case may be,] are calculated to advance the development of water-power in the State, and may organize and carry out power and hydrometric survey work and cause to be made such maps, plans, sections and estimates as are necessary for any of the said purposes? [and in such manner as the Authority may, from time to time, specify]: Provided that where any such measures relate to a source of water-power already operated upon by a licensee under a licence, the Board shall give the licensee notice of such measure and an opportunity to be heard on any representations he may desire to make in that behalf and may consider such representation.
Section 22 - Power to Board to conduct investigations
Subject so far as the provisions of this section relate to water-power to the previous approval of the State Government, the Board may at its own expense conduct such investigations, experiments and trials as it thinks fit for the improvement of the methods of transmission, distribution and supply of electricity or of the utilisation of fuel, water-power or other means of gen?erating electricity, and may establish and maintain laboratories for the testing and standardization of electrical instruments and equipment.
Section 23 - Loans by Board to licensees
- Subject to any regulations made in this behalf, the Board may grant loans or advances to any licensee for the purposes of his undertaking on such terms as the Board thinks proper.
- The Board in the discharge of its functions may call upon a licensee to expand his undertaking and offer to advance to him a loan on such terms and conditions as it may deem proper for such expansion, and if the licensee refuses, fails or neglects to accept the loan from the Board on the terms and conditions offered or to raise a loan from other sources or lo employ his own funds? [***] for purposes of such expansion and to carry out such expansion, the Board may, after giving the licensee six months' notice is writing, purchase his undertaking.
Section 24 - Power to Board to contribute to certain associations
The Board may, subject to any regulations made in this behalf, -
- pay such subscriptions as it thinks fit to any association for the promotion of the common interests of persons engaged in the generation, distribution and supply of electricity and the members of which consist mainly of such persons;
- contribute such sums as it thinks fit to the funds of any recognised society the object of which is to foster the development and use of electricity or promotion of knowledge and research in respect of electricity or electrical appliances.
Section 25 - Consulting engineers
The Board may, subject to such conditions as may be prescribed, from time to time appoint qualified persons to be consulting engineers to the Board and pay them such remuneration as it thinks proper.
Section 26 - Board to have powers and obligations of licensee under Act 9 of 1910
Subject to the provisions of this Act, the Board shall, in respect of the whole State, have all the powers and obligations of a licensee under the Indian Electricity Act, 1910, and this Act shall be deemed to be the licence of the Board for the purposes of that Act:
Provided that nothing in sections 3 to 11, sub-sections (2) and (3) of?section 21?and? [section 22, sub-section (2) of?section 22A?and?sections 23?and?27] of that Act or in? [clauses I to V, clause VII and clauses IX to XII] of the Schedule to that Act relating to the duties and obligations of a licensee shall apply to the Board: [Provided further that the provisions of clause VI of the Schedule to that Act shall apply to the Board in respect of that area only where distribution mains have been laid by the Board and the supply of energy through any of them has commenced.] [STATE AMENDMENTS
[UTTAR PRADESH
[In Section 26 As amended in its application to Uttar Pradesh, hereinafter in this Chapter referred to as the principal Act, for the second proviso, the following proviso shall be substituted :
"Provided further that the provisions of Clause VI of the Schedule to that Act shall apply to the Board, with the following modifications, in respect of that area where distribution mains have been laid by the Board and the supply of energy through any of them has commenced :
In sub-clause (1)--
- for the opening paragraph, the following paragraph shall be substituted :
"Where after distributing mains have been laid down under the provisions of Clause IV or Clause V and the supply of energy through those mains or any of them has commenced a requisition is made by the owner or occupier of any premises situate within the area of supply requiring the licensee to supply energy for such premises, the licensee shall, within six months of the making of the requisition, supply and save in so far as he is prevented from doing so by cyclones, floods, supply, energy in accordance with the requisition;
- that, in case of a larger amount of current being transmitted by it, the loss of pressure will seriously affect the efficiency of the supply to other consumers in the vicinity, the licensee may?refuse?to accede to the requisition for such reasonable period, not exceeding three years as such Inspector may think sufficient for the purpose or amending the distributing main or laying down or placing a further distributing main,"
- after the fourth proviso thereto, the following proviso shall be inserted, namely :
"Provided, fifthly, that the Board may with approval of the State Government prepare a scheme for an area providing for the supply of electricity for the purposes of agricultural operations on priority basis subject to the conditions of payment of priority charges either in a lumpsum or in such instalments as may be specified in the scheme, and where such scheme is prepared, the person making the requisition the supply of energy in accordance with the terms of the scheme shall be entitled to supply of energy on priority basis within three months from the making of the requisition and to continuance of such supply save in so far as the Board is prevented from doing so by cyclones, floods, storms or other occurrences beyond its control, and subject further to any rostering in accordance with the terms of the scheme."]
Section 26A - Applicability of the provisions of Act 9 of 1910 to Generating Company
[26A. Applicability of the provisions of Act 9 of 1910 to Generating Company - Notwithstanding anything contained in sub-section (2), nothing in the Indian Electricity Act, 1910, shall be deemed to require a Generating Company to take out a licence under that Act, or to obtain sanction of the State Government for the purpose of carrying on any of its activities.
- Subject to the provisions of this Act, sections 12 to 19 (both inclusive) of the Indian Electricity Act, 1910 (9 of 1910) and clauses XIV to XVII (both inclusive) of the Schedule thereto, shall, as far as may be, apply in relation to a Generating Company as they apply in relation 10 a licensee under that Act (hereafter in this section referred to us the licensee) and in particular a Generating Company may, in connection with the performance of its duties, exercise-
- all or any of the powers conferred on a licensee by sub-section (1) of?section 12?of the Indian Electricity Act, 1910, as if-
- the reference therein to licensee were a reference to the Generating Company;
- the reference to the terms and conditions of licence were a reference to the provisions of this Act and to the articles of association of the Generating Company; and
- the reference to the area of supply were a reference to the area specified under sub-section (3) of section 15A in relation to the Generating Company;
- all or any of the powers conferred on a licensee by sub-section (1) of?section 14?of the Indian Electricity Act, 1910 (9 of 1910), as if-
- the references therein to licensee were references to the Generating Company, and
- the Generating Company had the powers of a licensee under the said Act.
- The provisions of?section 30?of the Indian Electricity Act, 1910 (9 of 1910) shall not apply to the transmission or use of energy by a Generating Company.
- For the removal of doubts, it is hereby declared that sections 31 to 34 (both inclusive) of the Indian Electricity Act, 1910 (9 of 1910), shall apply to a Generating Company.]
Section 27 - Other functions of the Board
[The Board or a Generating Company] shall have such further powers and duties as are provided in this Act. [STATE AMENDMENTS
[Haryana
[After Section 27 The following section shall be inserted namely:-
"27-A. Transfer of electrical work of Bhakra-Nangal Project to Board.--
No'-withstanding anything contained in this Act, the State Government Of Punjab (hereinafter referred to as the "State Government)" may transfer to the Board, for the purposes of this Act, its right and interests relating to the management and control of the electrical portion of the Bhalcra-Nangal Project and all works connected therewith, including common pool works and works, if any, under taken by the State Government on behalf of the Government of Rajasthan and on such transfer the Board shall assume the control and management of such rights and interests subject to the terms of any agreement relating the common pool works as may have been or may be executed in that behalf by the State Government with the Government of Rajasthan.
Explanation -For the purposes of this section the expression "common pool works shall mean the following works:-
- Bhakra Power-house including the Set-up Sub-section.
- Nangal Power-houses at Ganguwal and Kotla including the Set-up Sub-stations at these places.
- Double-circuit 132 KV Transmission Line between Ganguwal power-house and Ludhiana, including the connected Grid Sub-station at Ludhiana.
132/220 KV Double-circuit Transmission Line between Bhakra and Delhi, and the connected Grid sub-stations at Dhulkote (Ambala), Panipat and Delhi. - Single-circuit 132 KV Transmission Line between Ludhiana and Jullundur including the connected Grid Sub-stations at Jullundur.
- Single-circuit 132 KV Transmission Line between Ludhiana and Mulcstar including the connected Sub-stations at Moga and Muktsar.
- Single-circuit 132 KV Transmission Line between Panipat and Hissar including the connected Grid Sub-sections at Hansi and Hissar.
- Three-circuit 66 KV Transmission Line from Bakra Power House to the Nan-gal Fertiliser Factory".]
[In Section 27-A In its application to the State of Punjab, item (v) shall be deleted and items (vi), (vii) shall be renumbered as items (v), (vi) and (viii), respectively.]
[Punjab
[After Section 27 The following section shall be inserted namely:-
"27-A. Transfer of electrical work of Bhakra-Nangal Project to Bo rd.--
No'-withstanding anything contained in this Act, the State Government Of Punjab (hereinafter referred to as the "State Government)" may transfer to the Board, for the purposes of this Act, its right and interests relating to the management and control of the electrical portion of the Bhalcra-Nangal Project and all works connected therewith, including common pool works and works, if any, under taken by the State Government on behalf of the Government of Rajasthan and on such transfer the Board shall assume the control and management of such rights and interests subject to the terms of any agreement relating the common pool works as may have been or may be executed in that behalf by the State Government with the Government of Rajasthan.
Explanation -For the purposes of this section the expression "common pool works shall mean the following works:-
- Bhakra Power-house including the Set-up Sub-section.
- Nangal Power-houses at Ganguwal and Kotla including the Set-up Sub-stations at these places.
- Double-circuit 132 KV Transmission Line between Ganguwal power-house and Ludhiana, including the connected Grid Sub-station at Ludhiana.
132/220 KV Double-circuit Transmission Line between Bhakra and Delhi, and the connected Grid sub-stations at Dhulkote (Ambala), Panipat and Delhi. - Single-circuit 132 KV Transmission Line between Ludhiana and Jullundur including the connected Grid Sub-stations at Jullundur.
- Single-circuit 132 KV Transmission Line between Ludhiana and Mulcstar including the connected Sub-stations at Moga and Muktsar.
- Single-circuit 132 KV Transmission Line between Panipat and Hissar including the connected Grid Sub-sections at Hansi and Hissar.
- Three-circuit 66 KV Transmission Line from Bakra Power House to the Nan-gal Fertiliser Factory".]
[After Section 27 In its application to the State of Punjab, item (v) shall be deleted and items (vi), (vii) shall be renumbered as items (v), (vi) ant (viii), respectively.]]]
Chapter V - THE WORKS AND TRADING PROCEDURE OF THE BOARD AND THE GENERATING COMPANY
CHAPTER V?
[THE WORKS AND TRADING PROCEDURE OF THE BOARD AND THE GENERATING COMPANY]
Section 28 - Preparation and sanctioning of scheme
[28. Preparation and sanctioning of scheme - For the efficient performance of its duties under this Act, the Board or a Generating Company, as the case may be, may prepare one or more schemes, relating to the establishment or acquisition of generating stations, tie-lines, sub-stations or transmission lines, as are referred to in clause (e) of section 18 or clause (c) of sub-section (1) of section 18A, as the case may be.
- The Board or, as the case may be, the Generating Company which has prepared a scheme may, sanction such scheme either generally or in respect of any part of the area specified in the scheme and where a scheme has been sanctioned in respect of any part of the area, such scheme may subsequently be sanctioned in respect of any other part of that area:
Provided that where the scheme is of the nature referred to in sub-section (1) of section 29, the scheme shall not be sanctioned (generally or for part of an area) by the Board or the Generating Company except with the previous concurrence of the Authority.
[(2A) The Board or, as the case may be, the Generating Company shall, as soon as may be after it has sanctioned any scheme which is not of the nature referred to in section 29, forward the scheme to the Authority and, if required by the Authority so to do, supply to the Authority any information incidental or supplementary to the scheme within such period as may be specified by the Authority.] - Every scheme sanctioned under this section shall be published in the Official Gazette and in such local newspapers as the Board or, as the case may be, the Generating Company may consider necessary.]
Section 29 - Submission of schemes for concurrence of Authority etc
[29. Submission of schemes for concurrence of Authority, etc. [(1) Every scheme estimated to involve a capital expenditure exceeding such sum, as may be fixed by the Central Government, from time to time, by notification in the Official Gazette, shall, as soon as may be after it is prepared, be submitted to the Authority for its concurrence.] (2) Before finalisation of any scheme of the nature referred to in sub-section (1) and the submission thereof to the Authority for concurrence, the Board or, as the case may be, the Generating Company shall cause such scheme, which among other things shall contain the estimates of the capital expenditure involved, salient features thereof and the benefits that may accrue therefrom, to be published in the Official Gazette of the State concerned and in such local newspapers as the Board or the Generating Company may consider necessary along with a notice of the date, not being less than two months after the date of such publication, before which licensees and other persons interested may make representations on such scheme.
(3) The Board or, as the case may be, the Generating Company may, after considering the representations, if any, that may have been received by it and after making such inquiries as it thinks fit, modify the scheme and the scheme so finally prepared (with or without modifications) shall be submitted by it to the Authority along with the representations.
(4) A copy of the scheme finally prepared by the Board or, as the case may be, the Generating Company under sub-section (3) shall be forwarded to the State Government or State Governments concerned:
Provided that where the scheme has been prepared by a Generating Company in relation to which the Central Government is the? [competent government or one of the competent governments], a copy of the scheme finally prepared shall be forwarded also to the Central Government. (5) The Authority may give such directions as to the form and contents of a scheme and the procedure to be followed in, and any other matter relating to, the preparation, submission and approval of such scheme, as it may think fit.
(6) In respect of any scheme submitted to the Authority for its concurrence under sub-section (1), the Board or, as the case may be, the Generating Company shall, if required by the Authority so to do, supply any information incidental or supplementary to the scheme within such period, being not less than one month, as may be specified by the Authority.]
Section 30 - Matters to be considered by the Authority
[The Authority shall, before concurring in any scheme submitted to it under sub-section (1) of section 29, have particular regard to, whether or not in its opinion-]. - any river-works proposed? [***] will prejudice the prospects for the best ultimate development of the river or its tributaries for power-generation, consistent with the requirements of irrigation, navigation and flood-control, and for this purpose the Authority [shall satisfy itself, after consultation with the State Government, the Central Government, or such other agencies as it may deem appropriate,] that an adequate study has been made of the optimum location of dams and other river-works;
- the proposed scheme will prejudice the proper combination of hydro-electric and thermo-electric power necessary to secure the greatest possible economic output of electric power;
- the proposed main transmission lines will be reasonably suitable for regional requirements;
- the scheme provides reasonable allowances for expenditure on capital and revenue account;
- the estimates of prospective supplies of electricity and revenue therefrom contained in the scheme are reasonable;
[(f) in the case of a scheme in respect of thermal power generation, the location of the generating station is best suited to the region, taking into account the optimum utilisation of fuel resources, the distance of load center, transportation facilities, water availability and environmental considerations; the scheme conforms to any other technical, economic or other criteria laid down by the Authority in accordance with the national power policy evolved by it in pursuance of the provisions contained in clause (i) of sub-section (1) of section 3? [and such other directions as may be given by the Central Government].]
Section 31 - Concurrence of Authority to scheme submitted to it by Board or Generating Company
[31. Concurrence of Authority to scheme submitted to it by Board or Generating Company - Where a scheme is submitted to the Authority under sub-section (1) of section 29, the Authority may, having regard to the matters referred to in section 30, either concur in the scheme without modification or require the Board or, as the case may be, the Generating Company to modify the scheme in such manner as the Authority specifies in the requisition so as to ensure that the scheme conforms to the national power policy evolved by the Authority in pursuance of the provisions contained in clause (i) of sub-section (1) of section 3 and in either case the Authority shall also communicate its decision to the State Government or State Governments concerned:
Provided that where the scheme was submitted for concurrence by a Generating Company in relation to which the Central Government is the? [competent government or one of the competent governments], the decision shall be communicated also to that Government. - Where under sub-section (1) the Authority requires that a scheme may be modified, the Board or, as the case may be, the Generating Company may prepare a revised scheme in accordance with such requisition and submit it to the Authority for concurrence and thereupon the Authority shall, if satisfied that the revised scheme complies with the requisition, concur in the same.
Section 32 - Power to alter or extend schemes
The Board or, as the case may be, the Generating Company may, from time to time, alter or extend a scheme by a supplementary scheme prepared in the manner specified in section 31:
Provided that any alterations or extensions of a scheme which are, in the opinion of the Board or, as the case may be, the Generating Company, minor in character may be made without preparing a supplementary scheme:
Provided further that where any alteration or extension of the nature referred to in the first proviso is made in respect of a scheme concurred in by the Authority, details of such alteration or extension shall be intimated to the Authority as soon as may be after such alteration or extension is made.
Section 33 - Provisions applicable to scheme prepared by State Government
The provisions of sections 28 to 32 (both inclusive) shall, so far as may be, apply also in relation to a scheme prepared by a State Government for the generation, transmission or distribution of electricity.]
Section 34 - Controlled stations
[(1)] Where a generating station situate within an area for which a scheme is in force has been designated in the scheme as a controlled station, the relations between the Board and the licensee owning the station shall, subject to any arrangements agreed under section 47, be regulated by the provisions of the First Schedule. [(2) Notwithstanding anything contained in this Act or any scheme made hereunder, no generating station owned by a Generating Company shall be designated as a controlled station.]
Section 35 - Supply by the Board to licensees owning generating stations
The Board may at any time declare to a licensee owning a generating station, other than a controlled station, situate within an area for which a scheme is in force that it is ready to make a supply of electricity available to the licensee for the purposes of his undertaking, and thereupon, but without prejudice to the provisions of section 47, the provisions of the Second Schedule shall apply in respect of the relations between the Board and the said licensee.
Section 36 - Power to Board to close down generating stations
The Board may at any lime declare to a licensee owning a generating station situate within an area for which a scheme is in force that the station shall be permanently closed down, and thereupon but without prejudice to the provisions of section 47, where the station is a controlled station the provisions of Part III of the First Schedule, or in other cases the provisions of the Third Schedule, shall apply in respect of the relations between the Board and the said licensee with reference to the station to be closed down.
Section 37 - Purchase of generating stations or undertakings or main transmission lines by the Board
- Where under the First or Third Schedule any generating station or undertaking is to be purchased by the Board, or where a sanctioned scheme provides for the purchase by the Board of a main transmission line belonging to any licensee, ?
- the generating station or undertaking from such date of purchase as may be fixed under the appropriate Schedule, or the main transmission line from such date of purchase as the Board shall, by notice in writing given not less than one month before the said date, intimate to the licensee, shall vest in the Board free, save as provided in sub-section (2), from any debt, mortgage, lien or other similar obligation of the licensee or attaching to the station or undertaking or line, as the case may be, and any such debt, mortgage, lien or obligation shall, save as aforesaid, attach to the purchase-money in substitution of the station or undertaking or line:
Provided that notwithstanding any agreement to the contrary the licensee shall pay and the mortgagee, charge, lien-holder or oblige shall accept the whole or part of the purchase-money as the case may be in full or part satisfaction of the debt according as the amount of the purchase-money is more or less than the amount of his debt;
- without prejudice to the provisions of section 47, the Board shall pay, or tender payment of, the price to be determined in accordance with the Fourth Schedule as soon as the amount thereof has been determined, together with interest on such amount from the date of purchase to the date of payment or tender of payment as aforesaid at the rate of one per centum over the average of the Reserve Bank rates between the said dates;
- the receipt of the licensee shall notwithstanding anything in any other law, be a full and sufficient discharge to the Board for the payment due in respect of the purchase.
- Where a generating station or undertaking or main transmission line purchased by the Board under this Act is in course of construction, extension or repair at the dale of purchase, the rights and liabilities of the former owner thereof under any contract for such construction, extension or repair shall be deemed to have been transferred to the Board, except such rights or liabilities acquired or incurred after the date of receipt of the notice of purchase without the prior sanction of the Board.
- Notwithstanding anything contained elsewhere in this Act, ?
- where any generating station purchased by the Board under this Act contains any plant or apparatus which, while the station was in operation, were used jointly for the purposes of generation and transmission or distribution or wholly for the purposes of transmission or distribution, then unless otherwise agreed between the Board and the licensee, such plant or apparatus shall not be purchased by the Board but shall remain the property of the licensee;
- where under the provisions of section 28 a scheme provides for the purchase of any main transmission line belonging to any licensee the Board shall not exercise the powers of acquisition thereby afforded without the prior consent of the licensee, which consent shall not be unreasonably withheld.
Section 38 - Provision of new generating stations
[Repealed. by the Electricity (Supply) Amendment Act, 1976 (115 of 1976), Section 21 (w.r.e.f. 8-10-1976).]
Section 39 - Operation of Boards generating stations
[(1)] Where the Board itself establishes a new generating station or acquires a generating station otherwise than for the purpose of closing it down, it shall operate the station itself, but the Board may with the sanction of the State Government make arrangements with any licensee or other person for its operation, if in the opinion of the Board it is desirable so to do.