THE ELECTRICITY (SUPPLY) ACT, 1948
CONTENTS
INTRODUCTORY
1. Short title, extent and commencement
2. Interpretation
THE CENTRAL ELECTRICITY AUTHORITY
3. Constitution of the Central Electricity Authority
4. Power to require accounts, statistics and returns
4-A. Directions by Central Government to the Authority
4-B. Power of Central Government to make rules
4-C. Power of Authority to make regulations
STATE ELECTRICITY BOARDS, GENERATING COMPANIES,
STATE ELECTRICITY CONSULTATIVE COUNCILS AND
LOCAL ADVISORY COMMITTEES
5. Constitution and composition of State Electricity Boards
6. Inter-State agreement to extend Board's jurisdiction to another
State
7. Effect of inter-State agreement
8. Term of office and conditions for re-appointment of members
of the Board
9. Members not to hold interest in certain concerns
10. Removal or suspension of members
10-A. Power of State Government to declare certain transactions
void
11. Temporary absence of members
12. Incorporation of Board
12-A Board may have capital structure
13. Authentication of orders and other instruments of the Board
14. Meetings of the Board
15. Appointment of staff
15-A. Objects, jurisdiction, etc. of generating companies
16. State Electricity Consultative Council
17. Local Advisory Committee
POWERS AND DUTIES OF STATE ELECTRICITY BOARDS AND GENERATING
COMPANIES
18. General duties of the Board
18-A. Duties of Generating Company
19. Powers of the Board to supply electricity
20. Power to Board to engage in certain undertakings
20-A. Leasing out, etc. of generating stations
21. Powers of Board in relation to water power
22. Power to Board to conduct investigations
23. Loans by Board to licensees
24. Power to Board to contribute to certain associations
25. Consulting engineers
26. Board to have powers and obligations of licensee under Act
IX of 1910
26-A. Applicability of the provisions of Act 9 of 1910 to Generating
Company
27. Other functions of the Board or a generating company
THE WORKS AND TRADING PROCEDURE OF THE BOARD AND THE GENERATING
COMPANY
28. Preparation and sanctioning of schemes
29. Submission of schemes for concurrence of Authority, etc.
30. Matters to be considered by the Authority
31. Concurrence of Authority to scheme submitted to it by Board
or Generating Company
32. Power to alter or extend schemes
33. Provisions applicable to scheme prepared by State Governments
34. Controlled stations
35. Supply by the Board to licensees owning generating stations
36. Power to Board to close down generating stations
37. Purchase of generating stations or undertakings or main transmission
lines by the Board
38. [Repealed]
39. Operation of Board's generating stations
40. Provision regarding connections with main transmission lines
purchased by the Board
41. Use of transmission lines
42. Powers to Board for placing wires, poles, etc.
43. Power to Board to enter into arrangements for purchase or
sale of electricity Certain conditions
43-A. Terms, conditions and tariff for sale of electricity by
Generating Company
44. Restriction on establishment of new generating stations or
major additions or replacement of plant in nerating stations
45. Power to Board to enter upon and shut down generating stations
in certain circumstances
46. The Grid Tariff
47. Power to Board to make alternative arrangements with licensees
48. Power to licensee to carry out arrangements under this Act
49. Provision for the sale of electricity by the Board to persons
other than licensees
50. Board not to supply electricity in certain circumstances
51. Provisional payments
52. Lower limit of power factor in supply by Board
53. Provision of accommodation and right of way
54. Power to Board to connect meters, etc., to apparatus of licensees
55. Compliance of directions of the Regional Electricity Board
etc. by licensees or Generating Companies
56. Leases of generating stations
57. Licensee's charges to consumers
57-A. Rating Committees
57-B. Power of rating committee to call for information, etc.
58. Power to direct amortisation and tariffs policies of licensees
being local authorities
THE BOARD'S FINANCE, ACCOUNTS AND AUDIT
59. General principles for Board's finance
60. Board to assume obligations of State Government in respect
of matters to which this Act applies
60-A. Period of limitation extended in certain cases
61. Annual financial statement
62. Restriction on unbudgeted expenditure
63. Subventions to the Board
64. Loans to the Board
65. Power of Board to borrow
66. Guarantee of loans
6-A. Conversion of amount of loans into capital
67. Priority of liabilities of the Board
67-A. Interest on loans advanced by State Government to be paid
only after other expenses
68. Charging of depreciation by Board
69. Accounts and audit
MISCELLANEOUS
70. Effect of other laws
71. [Repealed]
72. Water-power concessions to be granted only to the Board or
a Generating company
73. Co-ordination between the Board's schemes and multipurpose
schemes
74. Powers of entry
75. Annual reports, statistics and returns
75-A. Annual reports and accounts of Generating Company
76. Arbitration
77. Penalties
77-A. Source from which fines may be paid
77-B. Offences by companies
77-C. Cognizance of offences
78. Power to make rules
78-A. Directions by the State Government
79. Power to make regulations
79-A. Laying of notification before the State Legislature
80. Provision relating to income tax and super-tax
81. Members, officers and other employees of the Board to be
public servants.
82. Protection to persons acting under this Act
83. Saving of application of Act
THE FIRST SCHEDULE
THE SECOND SCHEDULE
THE THIRD SCHEDULE
THE FOURTH SCHEDULE
THE FIFTH SCHEDULE
THE SIXTH SCHEDULE
THE SEVENTH SCHEDULE - [Omitted]
THE EIGHTH SCHEDULE
THE NINTH SCHEDULE
THE ELECTRICITY (SUPPLY) ACT, 1948
(Act 54 of 1948) 1
An Act to provide for the rationalisation of the production and
Supply of electricity, and generally for taking measures
Conducive to 2[Electrical development.]
[10th September, 1948]
Whereas it is expedient to provide for the rationalisation of
the production and supply of electricity, for taking measures
conducive to 2[electrical development] and for all matters incidental
thereto;
1. For Statement of Objects and Reasons see Gazette of India
1947, Pt. V. p. 514; and for Report of Select Committee. see ibid.,
1948, pp. 201-03. The Act has been extended to Dadra and Nagar
Haveli by Reg. 6 of 1963, Sec. 2 and Sch. I (w.e.f. 1st July 1965).
2. Subs. by the A.0. 1950, for the words “the electrical
development of the Provinces of India”
It is hereby enacted as follows:-
The preamble makes it clear that the Act provides for-
(i) Rationalization of production and supply of electricity;
(ii) Taking measures conducive to electrical development; and
(iii) Matters incidental thereto.
CHAPTER I
INTRODUCTORY
1. SHORT TITLE, EXTENT AND COMMENCEMENT. -
(l) This Act may be called The Electricity (Supply) Act, 1948.
(2) It extends to the whole of India 1[except the State of Jammu
and Kashmir].
2[(3) This section and Sees. 2, 3, 4, 4-A, 4-B, 4-C, 15-A, 18-A,
26-A, 28 to 34 (both inclusive), subsection (2) of Sec. 39, Sec.
42, sub-section (3) of Sec. 43 and Sees. 57, 57-A, 57-B, 58, 75-A,
76, 77, 77-A, 77-B, 77-C, 82 and 83 and the provisions of the
3[Sixth Schedule] shall come into force at once. ]
(4) The remaining provisions of this Act shall come into force
in a State on such date, not later than two years from the coming
into force of sections, Schedule and Table mentioned in sub-section
(3), as the State Government may, by notification in the Official
Gazette, appoint:
Provided that the Central Government may, as respects any State
extend the said period of two years and in such event the remaining
provisions of the Act shall come into force in that State on such
date, not later than the extended period, as the State Government
may, by notification in the Official Gazette, appoint.4
5[(5) Notwithstanding anything contained in sub-section (4),-
(a) Where any provisions of this Act, to which sub-section (4)
applies, is in force in any State immediately before the commencement
of the Electricity (Supply) Amendment Act, 1978 (23 of 1978) that
provision as amended by the Electricity (Supply) Amendment Act,
1978 (23 of 1978), shall, on and from such commencement, be in
force in that State;
(b) The provisions of this Act, to which sub-section (4) applies,
which are not in force in any State on the commencement of the
Electricity (Supply) Amendment Act, 1978, shall come into force
in that State on such date as the State Government may, with the
concurrence of the Central Government, by notification in the
Official Gazette, appoint.]
1 . Subs. by Act 3 of 195 1, Sec. 3 and Schedule for the words
“except Par-t B States” (w.e.f. 1st April, 195 1).
2. Subs. by Act I 1 5 of 1976, Sec. 2, for sub-section (3) (w.e.f.
8th October, 1976).
3. Subs. by Act 23 of 1978, Sec. 2, for “Sixth and Seventh
Schedule” (w.e.f. 3rd June, 1978).
4. The Act has come into force in the State of Sikkim, w.e.f.
1st January, 1984, (vide S.O. 7(E). dated 30th December, 1983).
5. Ins. by Act 23 of 1978, Sec. 2.
STATE AMENDMENT
PONDICHERRY.-Substitution of sub-section (4):-
“(4) The remaining provisions of this Act shall come into
force in the State the State Government may, by notification in
the official Gazette appoint.” 1
1. Vide French Establishment A.LO.,1954 as modified by S.R.O.
2168-A, dated 29th June, 1957.
2. INTERPRETATION. -In this Act, unless there is anything repugnant
in the subject or context, -
(1) “Authority” means the Central Electricity Authority
constituted under Sec. 3;
(2) “Board” means a State Electricity Board constituted
under Sec. 5;
(3) “Bulk-licensee” means a licensee who is authorized
by his licence to supply electricity to other licensees for distribution
by them;
1[(3-A) “Competent government” means the Central
Government in respect of a Generating Company wholly or partly
owned by it and in all other cases the Government of the State
in which the generating station of a Generating Company is located
or proposed to be located;]
(4) “Controlled station” means a generating station
designated in a scheme sanctioned under Chapter V as a controlled
station;
2[(4-A)”Generating Company” means a company registered
under The Companies Act, 1956 (I of 1956), and which has among
its objects the establishment, operation and maintenance of generating
stations;]
(5) “Generate station” or “station” means
any station for generating electricity, including any building
and plant 3[with step-up transformer switch-gear, cables or other
appurtenant equipment, if any] used for that purpose and the site
thereof, a site intended to be used for a generating station,
and any buildings used for housing the operating staff of a generating
station, and where electricity is generated by water-power, includes
penstocks, head and tail works, main and regulating reservoirs,
dams and other hydraulic works, but does not in any case include
any sub-section 4[* * *];
(6) “Licensee” means a person licensed under Part
11 of The Indian Electricity Act, 19 10 (9 of 19 1 0) to supply
energy or a person who has obtained sanction under Sec. 28 of
that Act to engage in the business of supplying energy 5[but the
provisions of Sec. 26 or Sec. 26-A of this Act notwithstanding,
does not include the Board or a Generating Company]-,
(7) “Main transmission lines” means all high pressure
cables and over-head lines (not being an essential part of the
distribution system of a licensee) transmitting electricity from
a generating station to another generating station or to a sub-section,
together with any step-up and step down transformers, switch-gears
and other works necessary to and used for the control of such
cables or over-head lines, and such building or part thereof as
may be required to accommodate such transformers, switch-gears
and other works and the operating staff thereof,
6[(8) “Maximum demand” in relation to any period
shall, unless otherwise provided in any general or special orders
of the State Government mean twice the largest number of kilowatt-hours
or kilo-volt-ampere-hours supplied and taken during any consecutive
thirty minutes in that period;]
7[(8-A) “Power system” means all aspects of generation,
transmission, distribution and supply of energy; and includes
the following or any combination thereof-
(a) Generating stations;
(b) Transmission or main transmission lines;
(c) Sub-stations;
(d) Tic-lines;
(e) Load dispatch activities;
(f) Mains or distribution mains;
(g) Electric supply-lines;
(h) Overhead lines;
(I) Service lines;
(j) Works,]
(9) “Prescribed” means prescribed by rules 8[made
under this Act];
9[(9-A)”Regional Electricity Board” means a Board
constituted by resolution of the Central Government for a specified
region for facilitating the integrated operation of the power
system in that region;
(9-B) “Regional Load Dispatch Center” means the Center
so designated for a specified region where the operation of the
power system in that region and the integration of the power system
with other regions and areas (within the territory of India or
outside) are coordinated;
(9-C) “State Load Dispatch Center”, in relation to
a State, means the Center and designated where the operation of
the power system in that's State and integration of such State
power system with other power system are coordinated;]
(10) “Regulations” inseams regulations made by the
Board under Sec. 79;
(11) “Reserve Bank” means the Reserve Bank of India;
10[(l1-A) “Sub-section” means a station for transforming
or converting electricity for the transmission or distribution
thereof and includes transformers, converters, switch-gear, capacitors,
synchronous condensers, structures, cables and other appurtenant
equipments and any buildings used for that purpose and the site
thereof, a site intended to be used for any such purpose and any
buildings used for housing the staff of the sub-section;
(11-B) “Tie-line” means a line for the transfer of
electricity between two, power system “ means all works
mentioned in sub-section (7) used wholly or partially for the
purposes of distribution or transmission of energy;
9[(12) “Transmission lines” means all works mentioned
in sub-section(7) used wholly or partially for the purposes of
distribution or transmission of energy;]
(13) “Year” means, in relation to the Board 10[or
a Generating Company], the year commencing on the lest day of
April;
(14) “Year of account” means, in relation to a licensee,
his financial years;
(15) Other expression has the meanings respectively assigned
to them in The Indian Electricity Act, 1910 (9 of 19 1 0).
1. Ins. by Act 50 of 1991, Sec. 3 (w.e.f. 15th October, 1991).
2. Ins by Act 50 of 1991, Sec. 3 (w.e.f. 15th October, 199 1).
3. Ins by Act 115 of 1976, Sec. 3 (w.e.f. 8th October, 1976).
4. The words “for transforming, converting, distributing
electricity” omitted by ibid., Sec. 3, (w.e.f . 8th October
1976).
5. Subs by ibid., for the words and figures “but the provision
of Sec. 26 of this Act notwithstanding, does not include the Board”
(w.e.f. 8th October, 1976).
6. Subs by Act 101 of 1956, Sec. 3. for Cl. (8) (w.e.f. 30th
December, 1956).
7. Subs by Act no. 22 of 1998, Sec. 9, dated 10th August 1998.
8. Ins. by Act 50 of 199 1, Sec. 3 (w.e.f. 15th October, 199
1).
9. Subs. by Act No. 22 of 1998, Sec. 9, dated 10th August, 1998.
10. Ins. by Act 11 5 of 1976, Sec. 3 (w.e.f. 8th October, 1976).
CHAPTER II
THE CENTRAL ELECTRICITY AUTHORITY
3. CONSTITUTION OF THE CENTRAL ELECTRICITY AUTHORITY. -
(1) The Central Government shall constitute a body called the
Central Electricity Authority generally to exercise such functions
and perform such duties under the Act and in such manner as the
Central Government may prescribe or direct, and in particular
to-
(i) Develop a sound adequate and uniform national power policy,
1[formulate short-term and perspective plans for power development
and co-ordinate the activities of the planning agencies] in relation
to the control and utilisation of national power resources;
(ii) Act as arbitrators in matters arising between the State
Government or the Board and a licensee or other person as provided
in this Act;
2(iii) Collect and record the data concerning the generation,
distribution and utilisation of power and carry out studies relating
to cost, efficiency, losses, benefits and such like matters;]
(iv) Make public from time to time information secured under
this Act and to provide for the publication of reports and investigations;
3[(v) Advise any State Government, Board, Generating Company
or other agency engaged in the generation or supply of electricity
on such matters as will enable such Government, Board, Generating
Company or agency to operate and maintain the power system under
its ownership or control in an improved manner and where necessary,
in co-ordination with any other Government, Board, Generating
Company or other agency owning or having the control of another
power system;
(vi) Promote and assist in the timely completion of schemes sanctioned
under Chapter V;
(vii) Make arrangements for advancing the skill of persons in
the generation and supply of electricity;
(viii) Carry out, or make arrangements for, any investigation
for the purpose of generating or transmitting electricity; (ix)
promote research in matter affecting the generation, transmission
and supply of electricity
(x) Advise the Central Government on any matter on which its
advice is sought or make recommendation to that Government on
any matter if, in the opinion of the Authority, the recommendation
would help in improving the generation, distribution and utilisation
of electricity, and
(xi) Discharge such other functions as may be entrusted to it
by or under any other law.]
(2) The Authority shall consist of 4[not more than fourteen members
of whom not more than eight shall be full-time members] appointed
by the Central Government 5[* * *]
2[(2-A) A full-time member shall be a person who has experience
of', and has shown capacity in,-
(a) Design, construction, operation and maintenance of generating
stations;
(b) Transmission and supply of electricity;
(c) Applied research in the field of electricity;
(d) Applied economics; or
(e) Industrial, commercial or financial matters.]
(3) The Central Government shall appoint 6[one of the full-time
members] to be the Chairman of the Authority.
(4) All the members of the Authority shall hold office during
the pleasure of the Central Government.
7[(4-A) The Chairman of the Authority and the other full-time
members shall receive such salaries and allowances as may be determined
by the Central Government and the other members shall receive
such allowances and fees for attending the meetings of the Authority,
as the Central Government may prescribe.
(4-B) The other terms and conditions of service of the members
of the Authority [including, subject to the provisions of sub-section
(4), their terms of office] shall be such as the Central Government
may prescribe.]
(5) No full-time member of the Authority shall 8[have any share
or interest for his own benefit, whether in his own name or otherwise,]
in any company or other body corporate or an association of persons
(whether incorporated or not), or a firm engaged in the business
of supplying electrical energy or 9[fuel, in whatever form for
the generation of electricity or in the manufacture of electrical
equipment].
(6) The Authority may appoint a Secretary and such other officers
and 10[employees] as it considers necessary for the performance
of its functions under this Act on such terms as to salary, remuneration,
fee, allowance, pension, leave and gratuity as the Authority may,
in consultation with the Central Government, fix:
Provided that the appointment of the Secretary shall be subject
to the approval of the Central Government.
11[(7) The Chairman of the Authority may, by order, appoint any
two or more members of the Authority to act on behalf of the Authority
in relation to any matter referred to in Cl. (ii) of sub-section
(1).
(8) No act or proceeding of the Authority shall be invalid merely
on the ground of the existence of any vacancy in, or any defect
in the constitution of, the Authority.]
1. Subs by Act II 5 of 1976, Sec. 4, for “and particularly
to co-ordinate the activities of the planning agencies”
(w.e.f. 8th October, 1976).
2. Subs. by Act 115 of 1976, Sec. 4, for Cl. (iii) (w.e.f. 8th
October, 1976).
3. Ins. by ibid..
4. Subs. by ibid. for the words “not more than six members
(w.e.f. 8th October,1976)
5. The words “of whom at least three shall be full-time
members” omitted by Act 57 of 1949, Sec. 3.
6. Subs. by Act 115 of 1976, Sec. 4, for the words “one
of the members” (w.e.f. 8th October, 1976).
7. Ins. by ibid., (w.e.f. 8th October, 1976).
8. Subs. by Sec. 4. ibid., for the words “be directly or
indirectly concerned or interested in or have any share or interest”
(w.e.f. 8th October, 1976).
9. Subs. by Sec. 4, ibid., for the word “fuel solid or
liquid, for the generation of electricity” (w.e.f. 8th October.
1976).
10. Subs. by Act 23 of 1978, Sec. 3, for the word “servants”
(w.e.f. 3rd June, 1978).
11. Subs. by Act 115 of 1976, Sec. 4, for sub-section (7) (w.e.f.
8th October, 1976).
4. POWER TO REQUIRE ACCOUNTS, STATISTICS AND RETURNS.-It shall
be the duty of each 1[State Electricity Board, Generating Company,]
State Government Electricity Department or other licensee or person
supplying electricity for public or private purposes, or generating
electricity for its or his own use 2[for consuming electricity]
to furnish to the Authority such accounts, statistics, 3[returns
or other information] relating to the generation, supply and use
of electricity as it may require and at such time and in such
form and manner as it may direct.
1. Subs. by Sec. 5, ibid., for the words “State Electricity
Board” (w.e.f. 8th October, 1976).
2. Ins. by Sec. 5, ibid- (w.e.f. 8th October, 1976).
3. Subs. by Sec. 5, ibid, for the words “and returns”
(w.e.f. 8th October, 1976).
1[4-A.DIRECTIONS BY CENTRAL GOVERNMENT TO THE AUTHORITY. –
(1) 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.
(2) 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.
1. Ins by Act 115 of 1976, Sec. 6, (w.e.f. 8th October, 1976).
4-B. POWER OF CENTRAL GOVERNMENT TO MAKE RULES.-
(l) The Central Government may, by notification in the Official
Gazette, make rules for carrying out the purposes of this Chapter.
(2) In particular and without prejudice to the generality of
the foregoing power, such rules may provide for all or any of
the following matters, namely:
(a) 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 Sec. 3;
(b) 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 (4-A) and sub-section (4-B) of Sec. 3;
(c) Any other matter which is required to be, or may be, prescribed
by the Central Government.
(3) 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 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.].
4-C. POWER OP AUTHORITY TO REGULATIONS. -
1[(1)] The Authority may 2[by notification in the Official Gazette]
make regulations, not inconsistent with the provisions of this
Act and the rules made by the Central Government there under,
to provide for all or any of the following matters, namely:
(a) 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;
(b) Any other matter arising out of the functions of the Authority
under this Act for which it is necessary or expedient to make
regulations.]
3[(2) The Central Government shall cause every regulation made
under this section to 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 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 be
without prejudice to the validity of anything previously done
under that regulation.]
1. Re-numbered by Act 20 of 1983, Sec. 2 and the Schedule.
2. Ins. by ibid.
3. Ins. by Act 20 of 1983. Sec. 2 and the Schedule.
CHAPTER III
1[STATE ELECTRICITY BOARDS, GENERATING COMPANIES, STATE ELECTRICITY
CONSULTATIVE COUNCILS AND LOCAL ADVISORY COMMITTEES]
1. Subs. by Act 115 of 1976, Sec. 7, for the words “State
Electricity Board” (w.e.f. 8th October 1976).
5. CONSTITUTIONS AND COMPOSITION OF STATE ELECTRICITY BOARDS.
–
(1) The State Government shall, as soon as may be after the issue
of the notification under sub-section (4) of Sec. 1, constitute
by notification in the Official Gazette, a State Electricity Board
under such name as shall be specified in the notification.
(2) The Board shall consist of not less than three and not more
than seven members appointed by the State Government.
1[ * * * * *]
2 [(4) Of the members, -
(a) One shall be a person who has experience of, and has shown
capacity in, commercial matters and administration;
(b) One shall be an electrical engineer with wide experience;
and
(c) One shall be a person who has experience of accounting and
financial matters in a public utility undertaking, preferably
electricity supply undertaking.]
(5) One of the members possessing any of the qualifications specified
in subsection (4) shall be 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 3[* * *] a Member of 4[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.
1. Sub-section (3) omitted by Act 57 of 1949, Sec. 4 (w.e.f.
21st December, 1949).
2. Subs. by Act 101 of 1956, Sec. 4, for sub-section (4) (w.e.f.
30th December, 1956).
3. The words “or within the twelve months last preceding
was” omitted by Act 30 of 1966, Sec. 2 (w.e.f. 16th September
1966).
4. Subs. by the A.0. 1950, for the words “the Central”.
STATE AMENDMENT
HIMACHAL PRADESH. -In sub-section 6 of Sec. 5 for the words “if
he is a member of Parliament”, the words “if he has
attained the age of 65 years or is a member of Parliament”
shall be substituted.1
1. Vide H.P. Act No. 10 of 1990, Sec. 2 (w.e.f. 13th July, 1990).
6. INTER-STATE AGREEMENT TO EXTEND BOARD'S JURISDICTION TO ANOTHER
STATE. -
(1) Subject to the provisions of this section, the Government
of any State may, after it has issued a notification under sub-section
(4) of Sec. 1, in lieu of constituting a Board under Sec. 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
(2) 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 Governments
concerned, an agreement entered into under this section shall
be for a period of not less than twenty-five years but may be
determined earlier by mutual consent.
(3) An agreement under this section may, -
(a) Make such financial arrangements between the participating
State Governments as may be necessary for the purposes of the
agreement;
(b) Provide for consultation between the participating State
Governments either generally or with reference to particular matters
arising under this Act;
(c) 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.
STATE AMENDMENT
PONDICHERRY.-In Sec, q (2) and (3)for the words “State
Governments” substitute the word “Governments”.1
1. Vide French Establishment A.L.O. 1954 as amended by S.R.O.
2168-A. dated 29th June, 1957.
7. EFFECT OF INTER-STATE AGREEMENT.-Where an agreement is entered
into under Sec. 6, the participating State Governments shall,
by notification in the Official Gazettes, declare a date on which
the agreement shall come into force, and on and after that date-
(a) 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;
1[(b) References in this Act to-
(i) The State,
(ii) The State Electricity Consultative Council, and
(iii) The State Legislature,
Shall, unless the context otherwise requires, be construed as
references respectively to-
(A) Both States,
(B) Where more than one State Electricity Consultative Council
has been constituted under Sec. 16, to all such Councils, and
(C) The Legislatures of both States;]
(c) The provisions of Sec. 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 figures
“before the date on which the agreement under Sec. 6 came
into force”.
1. Subs. by Act 30 of 1966, Sec. 3. For Cl. (b) (w.e.f. 16th
September, 1966).
STATE AMENDMENT
PONDICHERRY.-In Sec. 7 (I)for the words “State Governments”
substitute the word “Government”.1
1. Vide French Establishment A.L.O. 1954 as amended by S.R.O.
2168-A, dated 29th June, 1957.
1[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-]
1. Subs. by Act 57 of 1949, Sec. 5, for Sec. 8 (w.e.f. 21st December,
1949).
STATE AMENDMENT
KARNATAKA. -In Sec. 8 of the principal Act, -
(1) 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 deemed always
to have been inserted:
(2) 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 for service as the State Government may, from
time to time, by general or special order, determine”1
1. Vide Knt. Act No. 46 of 1986, Sec. 2.
9. MEMBERS NOT TO HOLD INTEREST IN CERTAIN CONCERNS. --.
(l) 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 fitting 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 it' 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.
(2) 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.
(3) 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.
10. REMOVAL OR SUSPENSION OF MEMBERS. -
1[(1)] The State Government may suspend from office for such
period as it thinks fit or remove from office any member of the
Board who, -
(a) Is found to be a lunatic or becomes of unsound mind; or
(b) Is adjudged insolvent; or
(c) Fails to comply with the provisions of Sec. 9; or
(d) Becomes or seeks to become a Member of 2[Parliament] or any
State Legislature or any local authority; or
3[(e) In the opinion of the State Government-
(i) Has refused to act; or
(ii) Has become incapable of acting; or
(iii) Has so abused his position as a member as to render his
continuance on the Board detrimental to the interest of the general
public; or
(iv) Is otherwise unfit to continue as a member: or] (j) is convicted
of an offence involving moral turpitude.
4[(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 Sec. 5 to 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) It 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.]
1. Section 10 renumbered as subsection (1) thereof by act 101
of 1956, Sec. 5 (w.e.f. 30th December 1956).
2. Subs. by the A.0. 1950, for “the Central”.
3. Subs. by Act 101 of- 1956. Sec. 5, for Cl. (e) (w.e.f. 30th
December 1956).
4. Ins. by ibid. Sec. 5, for sub-sections (2) to (5).
1[10-A. POWER OF STATE, GOVERNMENT TO DECLARE CERTAIN TRANSACTIONS
VOID. -
(1) The State Government may declare void any transaction in
connection with which a member has been removed under sub-clause
(iii) of- Cl. (e) of sub-section (1) of Sec. 10 after considering
the report on the facts of the case made to it by a District Judge
nominated by it in this behalf.
(2) 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.
(3) Where a transaction is declared void under this section,
it shall not be enforceable by any party to the transaction but
the provisions of Sec. 65 of The Indian Contract Act, 1872 (9
of 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.
(4) 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.]
1. Ins. by ibid. Sec. 6 (w.e.f. 30th December 1956).
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 his 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 there under.
12. INCORPORATION OF BOARD. -The Board shall be a body corporate
by the name notified under sub-section (1) of Sec. 5, having perpetual
succession and a common seal, with power to acquire and hold property
both moveable and immovable, and shall by the said name sue and
be sued.
1[12-A. BOARD MAY HAVE CAPITAL STRUCTURE. –
(1) The State Government may, if it considers 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.
(2) 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.
(3) 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 the Government.]
1. Ins by Act 23 of 1978, Sec. 4 (w.e.f. 3rd June, 1978).
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.
14. MEETINGS OF THE BOARD. -
(1) 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.
(2) The number of members necessary to constitute a quorum at
a meeting shall be such as may be provided in the regulations.
15. APPOINTMENT OF STAFF. -The Board may appoint a Secretary
and such other officers and 1[employees] as may be required to
enable the Board to carry out its functions under this Act:
2[Provided that the appointment of the Secretary shall be subject
to the approval of the State Government].
1. Subs. by Act 23 of 1978, Sec. 5, for the word “servants”
(w.e.f. 3rd June, 1978).
2. Ins. by Act 101 of 1956, Sec. 7 (w.e.f. 30th December, 1956).
STATE AMENDMENT
UTTAR PRADESH. -In Sec. 15 of the Electricity (Supply), Act,
1948, as amended in its application to Uttar Pradesh, hereinafter
in this Chapter referred to as the principal Act, 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” 1
1. Vide U.P. Act No. 12 of 1983, Sec. 6.
1[15-A. 2[* * *] OBJECTS, JURISDICTION, ETC. OF GENERATING COMPANIES.
–
3[(1) * * *]
4[(2) The objects of a Generating Company shall include-
(a) Establishment, operation and maintenance of generating stations
and tie-lines, sub-stations, and main transmission lines connected
therewith;
(b) Operation and maintenance of such generating stations, tie-lines,
sub-stations and main transmission lines as are 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(4) [ * * * * * * * ]
(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, -
(a) Design, construction, operation and maintenance of generating
stations:
(b) Transmission and supply of electricity;
(c) Applied economics;
(d) Organising workers;
(e) Industrial, commercial or financial matters; or
(f) Administration in a Government Department or other establishment.
6[(6) [ * * * * * * * ]
5[(7) [ * * * * * * * ]
1. Ins. by Act 115 of 1976, Sec. 8 (w.e.f. 8th October, 1976).
2. Omitted by Act 50 of 1991. Sec. 4 (w.e.f. 15th October, 1991).
3. Omitted by ibid.
4. Subs. by ibid.
5 . Omitted by Act 50 of 1991, Sec. 4 (w. e. f. 1 5th October,
199 1).
6. Omitted by Sec. 4, ibid., (w.e.f. 15th October, 1991).
16. STATE ELECTRICITY CONSULTATIVE COUNCIL. -
(l) The State Government shall constitute a 1[State Electricity
Consultative Council] for the State, and in cases to which Sees.
6 and 7 apply, the State Governments concerned shall constitute
such one or more 2[State Electricity Consultative Council] or
Councils and for such areas as they may by agreement determine.
(2) The 2[State Electricity Consultative Council] shall consist
of 3[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 then 4[eight] and not more than fifteen
as the State Government or the State Governments concerned may
appoint after consultation with such representative 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, 5[labour employed in the electricity
supply industry and consumers of electricity], but so that there
shall be at least one member representing each such interest in
the Council.
(3) The Chairman of the Board shall be ex-officio Chairman of
the 2[State Electricity Consultative Council].
(4) The 2[State Electricity Consultative Council] shall meet
at least once in every three months.
(5) The functions of the 6 [State, Electricity Consultative Council]
shall be as follows:
(i) To advise 7[the Board and the Generating Company or Generating
Companies, if any, operating in the State] on major questions
of policy and major schemes:
(ii) To review the progress and the work of 8[the Board and the
Generating Company or Generating Companies, if any, operating
in the State] from time to time;
(iii) To consider such other matters as 8[the Board and the Generating
Company or Generating Companies, if any, operating in the State]
may place before it; and
(iv) To consider such matters as the State Government may by
rules prescribe.
9[(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 Sec. 61.]
1. Subs. by Act 101 of 1956, Sec. 8, for the words “State
Electricity Council” (w.e.f. 30th December, 1956).
2. Omitted by Sec. 4, ibid., (w.e.f. 15th October, 1991).
3. Subs. by Act 115 of 1976, Sec. 9, for the words “the
members of the Board” (w.e.f. 8th October, 1976).
4. Subs. by Act 30 of 1966, Sec. 4, for the word “seven”
(w.e.f 16th September, 1966).
5. Subs. by Act 101 of 1956, Sec. 8, for the word “and
labour employed in the electricity supply industry” (w.e.f.
30th December. 1956).
6. Subs by Act 101 of 1956, Sec. 8., for the words “State
Electricity Council” (w.e.f. 30th December, 1956),
7. Subs. by Act 115 of 1976, Sec. 9 for the words “the
Board” (w.e.f. 8tb October, 1976).
8. Subs. by Act 101 of 1956, Sec. 8 for the word and labour employee
in the Electricity Supply industry” (w.e.f. 30th December,
1956.
9. Subs. by Act 30 of 1966, Sec. 4, for sub-section (6) (w.e.f.
16th September 1966).
17. LOCAL ADVISORY COMMITTEE. –
(1) The State Government may from time to time constitute for
such areas as it may determine Local Advisory Committees, consisting
of such number of persons as it may think fit in each case and
on such terms and conditions as may be prescribed.
(2) 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 regulation so to do.
(3) 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.
(4) 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.
(5) 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 1[STATE ELECTRICITY
BOARDS AND GENERATING COMPANIES]
1. Subs. by Act 115 of 1976, Sec. 10, for the words “State
Electricity Boards” (w.e.f. 8th October, 1976).
1[18. “GENERAL DUTIES OF THE BOARD”. –Subject
to the provisions of this Act, the Board shall be charged with
the following general duties, namely:
(a) 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;
(b) To supply electricity as soon as practicable to a licensee
for other person requiring such supply if the Board is competent
under this Act so to do;
(c) 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;
(d) 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, transmission and supply of electricity within
the State;
(e) To prepare and carry out schemes for transmission, distribution
and generally for promoting the use of electricity within the
State; and
(f) 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.
1. Subs. by Sec. 11, ibid. for Sec. 18 (w.e.f. 8th October, 1976).
18-A. DUTIES OF GENERATING company. –
(l) Subject to the provisions of the Act, a Generating Company
shall be charged with the following duties, namely:
(a) To establish, operate and maintain such generating stations
and the lines, sub-stations and main transmission lines connected
therewith, as may be required to be established by the 1[competent
Government or Governments] in relation to the Generating Company;
(b) 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
(c) To carry out subject to the provisions of Sec. 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.
(2) Without prejudice to the generality of its duties under Sec.
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.]
1. Subs by Act 50 of 1991, Sec. 5 (w.e.f. 15th October 1991).
19. POWERS OF THE BOARD To supply ELEcTRIciTy. –
(1) 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, -
(a) Supply electricity for any purpose directly to any licensee
for use in any part of the area of supply of a bulk-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 bulk-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
(b) 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, -
(i) The actual effective capacity of the licensee's generating
station computed in accordance with Para. 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
(ii) 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
(iii) 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.
(2) 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
for the purpose in that area.
(3) 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.
(4) If any question arises under sub-section (1) as to the reasonableness
of the terms or conditions or time therein mentioned, it shall
be determined 1[by arbitration] as provided in Sec. 76.
1. Ins. by Act 30 of 1966. Sec. 5 (w.e.f. 16th September, 1966).
20. POWERS TO THE BOARD TO ENGAGE IN CERTAIN UNDERTAKINGS.-
(1) 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 be used', or any industrial
or agricultural machinery operated by electricity, and 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.
(2) 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.
(3) 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.
1[20-A. 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.]
1. Subs. by Act 11 5 of 1976. Sec. 12, for Sec. 20-A (w.e.f.
8th October. 1976)
21 POWERS OF BOARD IN RELATION TO WATER POWER-1[The Board or
a Generating Company may], with the previous approval of the State
Government, take such measures as 2{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 the said purposes 3[and in such manner as the Authority
may, form time to time specify]:
Provided that where any such measures relate to 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 hears on any representations he may desire to make in that
behalf and may consider such representation.
1. Subs. by Sec. 13, ibid. For the words “The Board may”
(w.e.f'. 8th October. 1976).
2. Subs. by ibid. Sec. 13. For the words “in the opinion
of the Board” (w.e.f. 8th October. 1976).
3. Ins. by ibid, Sec. 13 (w.e.f. 8th October, 1976).
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 generating electricity, and
may establish and maintain laboratories for the testing and standardisation
of electrical instruments and equipment.
23. LOANS BY BOARD TO LICENSEES. -
(l) Subject to any regulation 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.
(2) 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 to employ his
own funds 1[* * *] for purposes of such expansion and to carry
out such expansion, the Board may, after having the licensee six
months' notice in writing, purchase his undertaking.
1. The words “on terms similar to terms offered by the
Board” omitted by Act 101 of 1956, Sec. 9 (w.e.f. 30th December
1956).
24. POWER TO BOARD TO CONTRIBUTE TO CERTAIN ASSOCIATIONS. -The
Board may, subject to any regulations made in this behalf,-
(1) Pay such subscriptions as it thinks fit to any association
for the promotion of the common interest of persons engaged in
the generation, distribution and supply of electricity and the
members of which consist mainly of such persons;
(2) 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.
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.
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, 19 10 (9 of 19
1 0), and this Act shall be deemed to be the licensee of the Board
for the purposes of that Act:
Provided that nothing in Sees. 3 to I 1, subsections (2) and
(3) of Sec. 21 and 1[Sec. 22, sub-section (2) of Sec. 22-A and
Secs. 23 and 271 of that Act or in 2[CIS. I to V, Cl. VII and
Cls. IX to XII] of the Schedule to that Act relating to the duties
and obligations of a licensee shall apply to the Board:
3[Provided further that the provisions of Cl. VI of the Schedule
to that Act shall apply to the Board in respect of that area only
where the Board has laid distribution mains and the supply of
energy through any of them has commenced.]
1. Subs by Act 32 of 1959, Sec. 4 1, for the words “Secs.
22, 23 and 27 (w.e.f. 5th September 1959).
2. Subs. by Act 101 of 1956, Sec. 10 for the words “Cls.
I to XII (w.e.f. 30th December, 1956).
3. Ins. by Sec. 10, ibid.
STATE AMENDMENT
UTTAR PRADESH. -In Sec. 26 of The Electricity (Supply) Act, 1948,
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 Cl. VI of the
Schedule to that Act shall apply to the Board, with the following
modifications in respect of that area where the Board has laid
distribution mains and the supply of energy through any of them
has commenced:
In sub-clause (I)-
(a) For the opening paragraph, the following paragraph shall
be substituted:
Where after distributing mains have been lay down under the provisions
of Cl. IV or Cl. 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, storms or other occurrences beyond his control,
continue to supply, energy in accordance with the requisition;
(b) For the fourth proviso thereto, the following proviso shall
be substituted:
“Provided fourthly, that if any requisition is made for
supply of energy and the licensee can prove, to the satisfaction
of an electrical Inspector-
(a) That the nearest distributing main is already loaded up to
its full current carrying capacity, or
(b) 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 of amending the distributing
main or laying down or placing a further distributing main,”
(c) After the fourth proviso thereto, the following proviso shall
be inserted namely:
“Provided, fifthly, that the Board may with the 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 lump sum or in such installments
as may be specified in the scheme, and where such scheme is prepared,
the person making the requisition for 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 Fostering in accordance with the terms of the scheme.”
1
1. Vide the Electricity Laws (Uttar Pradesh Amendment). Act.
1974 (36 of 1974), Sec. 6.
1[26-A. APPLICABILITY OF THE PROVISIONS OF ACT 9 OF 1910 TO GENERATING
COMPANY. –
(1) Notwithstanding anything contained in sub-section (2), nothing
in The Indian Electricity Act, 1910 (9 of 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.
(2) Subject to the provisions of this Act, Sees. 12 to 19 (both
inclusive) of The Indian Electricity Act, 1910 (9 of 19 1 0),
and Cls. 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 to a licensee under that Act (hereafter
in this section referred to as the licensee) and in particular
a Generating Company may, in connection with the performance of
its duties, exercise-
(a) All or any of the powers conferred on a licensee by subsection
(1) of Sec. 12 of The Indian Electricity Act, 1910 (9 of 19 10),
as if, -
(i) The reference therein to licensee were a reference to t e
Generating Company;
(ii) The reference to the terms and conditions of licence were
a reference to the provisions of this Act to the articles of association
of the Generating Company; and
(iii) The reference to the area of supply was a reference to
the area specified under sub-section (3) of Sec. 15-A in relation
to the Generating Company;
(b) All or any of the powers conferred on a licensee by sub-section
(1) of Sec. 14 of the Indian Electricity Act, 19 10 (9 of 1910),
as if-
(i) The references therein to licensee were references to the
Generating Company; and
(ii) The Generating Company had the powers of a licensee under
the said Act.
(3) The provisions of Sec. 30 of the Indian Electricity Act,
1910 (9 of 19 1 0) shall not apply to the transmission or use
of energy by a Generating Company.
(4) For the removal of doubts, it is hereby declared that Sees.
31 to 34 (both inclusive) of The Indian Electricity Act, 1910
(9 of 1910), shall apply to a Generating Company.
1. Ins, by Act I 1 5 of 1976, Sec. 14 (w.e.f. 8th October, 1976).
27. OTHER FUNCTIONS. OF 'THE BE BOARD OR A GENERATING COMPANY.
-1[The Board or a Generating Company] shall have such further
powers and duties as are provided in this Act.
1. Subs. by Act 115 of 1976, Sec. 15, for the words’ The
Board” (w.e.f. 8th October, 1976).
STATE AMENDMENT
PUNJAB, HARYANA AND CHANDIGARH. -After Sec. 27, the following
section shall be inserted, name L-41-
“27-A. Transfer of electrical work of Bhakra-Nangal Project
to Board. -Notwithstanding 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 rights and interests relating to the management and control
of the electrical portion of the Bhakra-Nangal Project and all
work connected therewith, including common pool works and works,
if any, undertaken by the State Government on behave 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 to 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:
-
(i) Bhakra Power-House including the step-up and sub-station.
(ii) Nangal Power-houses at Ganguwal and Kotla including the
step-up Sub-stations at these places.
(iii) Double-circuit 132 kv. Transmission Lines between Ganguwal
Powerhouse and Ludhiana, including the connected Grid Sub-station
at Ludhiana.
(iv) 132120 kv. Double-circuit Transmission Line between Bhakra
and Delhi, and the connected Grid Sub-stations at Dhulkote (Ambala),
Panipat and Delhi.
(v) Single-circuit 132 kv. Transmission Line between Ludhiana
and Muktsar including the connection Grid Sub-stations at Moga
and Muktsar.
(vi) Single-circuit 132 kv. Transmission Line between Panipat
and Hissar including the connection Gird Sub-stations at Hansi
and Hissar.
(vii) Three-circuit 66 kv. Transmission Line from Bhakra Power-house
to the Nangal Fertilizer Factory” 1
1. Vide Punjab Act No. 9 of 1959, Sec. 2 as amended by Punjab
Act No. 2 of 196 1, Sec. 2, and Central Act XXXI of 1966. Sec.
88.
CHAPTER V
1[THE WORKS AND TRADING PROCEDURE OF THE BOARD AND
THE GENERATING COMPANY]
1. Subs. by Act 115 of 1976, Sec. 16, for the former heading
(w.e.f 8th October, 1976).
1[28. PREPARATION AND SANCTIONING OF SCHEMES. -
(1) 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, substations or transmission
lines as are referred to in Cl. (e) of Sec. 18 or Cl. (c) of sub-section
(1) of Sec. 18-A as the case may be.
(2) 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 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 Sec. 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.
2[(2-A) 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 Sec. 29 forward the scheme
to the Authority and, it required by 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.]
(3) 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.]
1. Subs by Sec. 17, ibid, for Secs. 28 and 29 (w.e.f. 8th October,
1976).
2. Ins by Act 48 of 1984, Sec. 2 (w.e.f. 1st October, 1984).
1[29. SUBMISSION OF SCHEMES FOR CONCURRENCE OF AUTHORITY ETC.-
2[(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 there from,
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 3[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. ]
1. Subs. by Act 115 of 1976, Sec. 17.
2. Subs. by Act 50 of 199 1, Sec, 6 (w.e.f. 15th October 1991).
3. Subs. by Act 50 of 199 1, Sec. 6 (w.e.f. 15th October, 1991).
30. MATTERS TO BE CONSIDERED BY THE AUTHORITY. -1[The Authority
shall, before concurring in any scheme submitted to it under sub-section
(1) of Sec. 29 have particular regard to, whether or not in its
opinion. -]
(a) Any river-works proposed 2[* * *] 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
3[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;
(b) The proposed scheme will prejudice the proper combination
of hydroelectric and thermoelectric power necessary to secure
the greatest possible economic output of electric power;
(c) The proposed main transmission lines will be reasonably suitable
for regional requirements,
(d) The scheme provides reasonable allowances for expenditure
on capital and revenue account;
(e) The estimates of prospective supplies of electricity and
revenue there from contained in the scheme are reasonable;
4[(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 centre, transportation facilities, water
availability and environmental considerations;
(g) 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 Cl. (i) of sub-section (1) of Sec. 3,]
5[And such other directions as may be given by the, Central Government.]
1. Subs. by Act 115 of 1976 Sec. 18, for the original paragraph
(w.e.f. 8th October, 1976).
2. The words “by the Board” omitted by ibid, (w.e.f.
8th October, 1976).
3. Subs. by ibid. for the words “shall satisfy itself'
(w.e.f. 8th October 1976).
4. Ins. by Act 115 of 1976, Sec. 18 (w.e.f. 8th October, 1976).
5. Added by Act 50 of 1991, Sec. 7 (w.e.f. 15th October, 1991).
1[31. CONCURRENCE OF AUTHORITY TO SCHEME SUBMITTED TO IT BY BOARD
OR GENERATING COMPANY.-
(1) Where a scheme is submitted to the Authority under sub-section
(1) of Sec. 29, the Authority may, having regard to the matters
referred to in Sec. 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 Cl. (i) of sub-section (1) of Sec.
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 2[competent Government or one of the competent Governments]
the decision shall be communicated also to that Government.
(2) 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.
1. Subs. by Act 115 of 1976. Sec. 19, for Secs. 31. 32 and 33
(w.e.f. 8th October, 1976).
2. Subs. by Act 50 of 1991, Sec. 8 (w.e.f. 15th October, 1991).
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 Sec. 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 Trade.
33. PROVISIONS APPLICABLE TO SCHEME PREPARED BY STATE GOVERNMENTS.
-The provisions of Sees. 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.]
34. CONTROLLED STATIONS. -
1[(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 Sec. 47, be regulated by the provisions of the First
Schedule.
2[(2) Notwithstanding anything contained in this Act or any scheme
made there under, no generating station owned by a Generating
Company shall be designated as a controlled station.]
1. Section 34 re-numbered as sub-section (1) thereof by Act 115
of 1976, Sec. 20 (w.e.f. 8th October, 1976).
2. Ins. by Sec. 20, bid. (w.e.f. 8th October 1976).
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 Sec. 47, the provisions of the Second Schedule shall apply
in respect of the relations between the Board and the said licensee.
36. POWER TO BOARD TO CLOSE DOWN GENERATING STATIONS. -The Board
may at any time 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 Sec. 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.
37. PURCHASE OF GENERATING STATIONS OR UNDERTAKING OR MAIN TRANSMISSION
LINES BY THE BOARD.
(l) 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, -
(a) 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 mortgage, chargee, lien-holder or obligee
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;
(b) Without prejudice to the provisions of Sec. 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;
(c) The receipt of the licensee shall notwithstanding in any
other law, be a full and sufficient discharge to the Board for
the payment due in respect of the purchase.
(2) 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 date 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 sanctions of the Board.
(3) Notwithstanding anything contained elsewhere in this Act,
-
(i) 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,
(ii) Where under the provisions of Sec. 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.
38. PROVISION OF NEW GENERATING STATIONS. -Rep. by the Electricity
(Supply) Amendment Act, 1976 (115 of 1976), Sec. 21 (w.e.f. 8th
October, 1976).
39. OPERATION OF BOARD’S GENERATING STATIONS. -
1[(1)] Where the Board itself establishes a new generating station
or acquire 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.
2[(2) Where a Generating Company has been established having
its activities wholly or partly in a State, the State Government
may direct the Board to make over any generating station established
or acquired by the Board to the Generating Company subject to
such terms and conditions as may be specified in the direction
and the Board shall comply with such direction:
Provided that where the Central Government is the 3[competent
Government or one of the competent Governments] in relation to
the Generating Company, no direction shall be made by any State
Government under this sub-section without the concurrence of the
Central Government.]
4[(3) For the purposes of this section, no direction shall be
issued to a Generating Company wholly or partly owned by the Central
Government unless and until the prior concurrence of that Government
is obtained.]
1. Sec. 39 re-numbered as sub-section (1) thereof by Act 115
of 1976, Sec. 22 (w.e.f. 8th October 1976).
2. Ins. by Act I 1 5 of 1976, Sec. 22, (w.e.f. 8th October, 1976).
3. Subs. by Act 50 of 199 1, Sec. 9 (w.e.f. 15th October, 199
1).
4. Ins. by ibid.
40. PROVISION REGARDING CONNECTIONS WITH MAIN TRANSMISSION LINES
PURCHASED BY THE BOARD. -Where the Board has purchased a main
transmission line and by reason of the user thereof by the Board
any alteration or replacement of switch-gear or other apparatus
of any licensee connected with the line becomes necessary the
Board may in its discretion itself carry out such alteration or
replacement at its own cost or defray the reasonable expenses
incurred by the licensee in effecting such alteration or replacement
and any question whether such alteration or replacement is necessary
or whether the expenses incurred in connection therewith are reasonable
shall, in default of agreement, be determined 1[by arbitration]
as provided under Sec. 76.
1. Ins by Act 30 of 1966, Sec. 10 (w.e.f. 16th September 1966).
1[41. USE OF TRANSMISSION LINES. –
(1) Until the Central Commission is established, the Central
Government and thereafter the Central Commission in the case of
inter-State transmission system and until the State Commission
is established, the State Government and thereafter the State
Commission in the case of State transmission system determine
the charges payable to the Central Transmission Utility or State
Transmission Utility, as the case may be, for the use of transmission
system by a Board, its successor entity, Generating Company, licensee
or any other person.
(2) The Central Transmission Utility or State Transmission Utility,
as the case may be, may enter into an agreement with any transmission
licensee for the exclusive use of the transmission system constructed,
maintained and operated by the transmission licensee.
(3) Where the Central Transmission Utility or the State Transmission
Utility, as the case may be, considers it necessary to use for
any purpose any transmission system or transmission line or main
transmission line of a generating company or a licensee, it shall
have power to use such lines to the extent to which the capacity
thereof is surplus to the requirements of the generating company
or the licensee on payment of charges calculated in accordance
with the provisions of the Fifth Schedule.]
1. Subs. by the Act no. 22 of 1998, Sec. 10, dated 10th August
1998.
42. POWERS TO BOARD FOR PLACING WIRES, POLES, ETC.-
1[(1)] Notwithstanding anything contained in Sees. 12 to 16,
18 and 19 of the Indian Electricity Act, 1910 (9 of 19 10), but
without prejudice to the requirements of Sec. 17 of that Act where
provision in such behalf is made in a sanctioned scheme, the Board
shall have, for the placing of any wires, poles, wall-brackets,
stays apparatus and appliances for the transmission and distribution
of electricity, or for the transmission of telegraphic or telephonic
communications necessary for the proper co-ordination of the works
of the Board, all the powers which the telegraph authority possesses
under Part III of the Indian Telegraph Act, 1885 (13 of 1885)
with regard to a telegraph established or maintained by the Government
or to be so established or maintained:
Provided that where a sanctioned scheme does not make such provision
as aforesaid, all the provisions of Sees. 12 to 19 of the first
mentioned Act shall apply to the works of the Board.
2[(2) A Generating Company may, for the placing of wires, poles,
wall-brackets, stays apparatus and appliances for the transmission
of electricity, or for the transmission of telegraphic or telephonic
communications necessary for the proper co-ordination of the works
of the Generating Company, exercise all or any of the powers which
the Board may exercise under subsections (1) and subject to the
conditions referred to therein.]
1. Section (1) thereof by Sec. 24, Act 115 of 1976, (w.e.f. 8tb
October, 1976).
2. Ins by ibid, Sec. 24 (w.e.f. 8th October, 1976.)
43. POWER TO BOARD TO ENTER INTO ARRANGEMENTS FOR PERCHASE OR
SALE OF ELECTRICITY UNDER CERTAIN CONDITIONS. -
(1) The Board may enter into arrangements with any person producing
electricity within the State for the purchase by the Board on
such terms as may be agreed, of any surplus electricity which
that person may be able to dispose of.
(2) Where a sanctioned scheme so provides, the Board may, on
such terms as may be agreed upon, enter into arrangements with
any Government or person for the purchase or sale of electricity
to be generated or used outside the State:
Provided that the Board may not enter into such arrangements
with any such Government or person without the consent of the
State Government, or into arrangements with any such person without
the consent of the Government of the State within which the electricity
is to be generated or used.
1[ * * * * *]
1. Omitted by Act 50 of 199 1, Sec. 1 0 (w.e.f. 15th October,
1991.
1[43-A. TERMS, CONDITIONS AND TARIFF FOR OF ELECTRICITY BY GENERATING
COMPANY. –
(1) A Generating Company may enter into a contract for the sale
of electricity generated by it-
(a) With the Board constituted for the State or any of the States
in which a generating station owned or operated by the company
is located;
(b) With the Board constituted for any other State in which
it is carrying on its activities in pursuance of sub-section (3)
of Sec. 15-A; and
(c) With any other person with consent of the competent Government
or Governments.
*(2) The tariff for the sale of electricity by a Generating Company
to the Board shall be determined in accordance with the norms
regarding operation and the Plant Load Factor as may be laid down
by the Authority and in accordance with the rates of depreciation
and reasonable return and such other factors as may be determined,
from time to time, by the Central Government, by notification
in the Official Gazette:
Provided that the terms, conditions and tariff for such sale
shall, in respect of a Generating Company, wholly or partly owned
by the Central Government, be such as may be determined by the
Central Government and in respect of a Generating Company wholly
or partly owned by one or more State Governments, be such as may
be determined by the Government or Governments concerned.]
1. Ins. by Sec. II, ibid. (w.e.f. 15th October 1991).
* Sub-section (2) shall be omitted by Act 14 of 1998, Sec.51
(w.e.f. to be notified in Gazette).
44. RESTRICTION ON ESTABLISHMENT OF NEW GENERATING STATIONS OR
MAJOR ADDITIONS OR REPLACEMENT OF PLANT IN GENERATING STATIONS.
-
(1) Notwithstanding anything contained in any other law for the
time being in force or in any licence, but subject to the provisions
of this Act, it shall not be lawful for a licensee, or, any other
person, not being the Central Government or an Corporation created
by 1[a Central Act] 2[or any generating Company], except with
the previous consent in writing of the Board, to establish or
acquire a new generating station or to extend or replace any major
unit of plant or works pertaining to the generation of electricity
in a generating station:
Provided that such consent shall not, except in relation to a
controlled station, be withheld unless within three months from
the date of receipt of an application-
(a) For consent to the establishment or acquisition of a new
generating station, the Board-
(i) Gives to the applicant being a licensee an undertaking that
it is competent to, and will, within twenty-four months from the
said date, afford to him a supply of electricity sufficient for
his requirements pursuant to his application; or
(ii) Shows to the applicant that the electricity required by
him pursuant to his application could be economically obtained
within a reasonable time from another appropriate source;
(b) For consent to the extension of any major unit of plant or
works as aforesaid, the Board-
(i) Gives to the applicant being a licensee an undertaking that
within twenty-four months from the said date either the station
to which the application pertains will become a controlled station
in terms of Sec. 34, or the Board will make a declaration to the
applicant in terms of Sec. 35 offering him a supply of electricity
sufficient for his requirements pursuant to his application, or
the Board will make a declaration to him in terms of Sec. 36;
or
(ii) Shows to the applicant that the electricity required by
him pursuant to his application could be more economically obtained
within a reasonable time from another appropriate source or by
other appropriate means;
(c) For consent to the replacement of major unit of plant or
works, the Board-
(i) Gives to the applicant being a licensee an undertaking that
within eighteen months from the said date either the station to
which the application pertains will become a controlled station
in terms of Sec. 34 or the Board will make a declaration to him
in terms of Sec. 36; or
(ii) Shows to the applicant that the electricity required by
him pursuant to his application could be more economically obtained
within a reasonable time from another appropriate source or by
other appropriate means.
(2) There shall be stated in every application under this section
such particulars as the Board may reasonably require of the station
plant or works, as the case may be, in respect of which it is
made, and where consent is given thereto, in acting in pursuance
of such consent, the applicant shall not without the further consent
of the Board, make any material variation in the particulars so
stated.
3[(2-A) The Board shall, before giving consent under subsection
(1), to the establishment or acquisition of a new generating station
or to the extension or replacement of any major unit of plant
or works, consult the Authority, in cases where the capacity of
the new generating station or, as the case may be, the additional
capacity proposed to be created by the extension or replacement
exceeds twenty-five thousand kilowatts.]
(3) Any difference or dispute arising out of the provisions of
this section shall be referred to the arbitration of the Authority.
1. Subs. by the A.I.O. 1950, for the words “legislation
enacted by the Central Legislature.”
2. Ins by Act 115 of 1976, Sec. 26 (w.e.f. 8th October, 1976).
3. Ins. by Act 115 of 1976. Sec. 26 (w.e.f. 8th October, 1976).
45. POWER TO BOARD TO ENTER UPON AND SHUT DOWN GENERATING STATIONS
IN CERTAIN CIRCUMSTANCES. -
(l) If any licensee fails to close down his generating stations
pursuant to a declaration of the Board under Sec. 36, or if any
person establishes or acquires a new generating station or extends
or replaces any plant or works in any generating station in contravention
of Sec. 44, the Board may authorise any of its officers to enter
upon the premises of such station and shut down the station or
the plant or works, as the case may be, in respect of which the
failure or contravention has occurred.
(2) Any expenses incurred by the Board under this section shall
be recoverable by it from the licensee or person concerned as
an arrear of land revenue, and for such purpose the Board shall
be deemed to be a public officer within the meaning of Sec. 5
of the Revenue Recovery Act, 1890 (I of 1890).
(3) Any difference or dispute arising out of the provisions of
this section shall be referred to the arbitration of the Authority.
46. THE GRID TARIFF. -
(1) A tariff to be known as the “Grid Tariff' shall, in
accordance with any regulations made in this behalf, be fixed
from time to time by the Board in respect of each area for which
a scheme is in force, and tariffs fixed under this section may,
if the Board thinks fit, differ for different areas.
(2) Without prejudice to the provisions of Sec.47, the Grid Tariff
shall apply to sales of electricity by the Board to licensees
where so required under any of the First, Second and Third Schedules,
and shall, subject as hereinafter provided, also be applicable
to sales of electricity by the Board to licensees in other cases:
Provided that if in any such other case it appears to the Board
that, having regard to the extent of the supply required, the
transmission expenses involved in affording the supply are higher
than those allowed in fixing the Grid Tariff, the Board may make
such additional charges as it considers appropriate.
(3) The Grid Tariff shall be so framed as to include as part
of the charge, and show separately a fixed kilowatt charges component
and a running charges component:
Provided that if in respect of any area the electricity to be
sold by the Board is wholly or substantially derived from hydroelectric
sources, the running charges component may be omitted.
(4) The fixed kilowatt charges component in the Grid Tariff may
be framed so as to vary with the magnitude of maximum demand.
(5) Where only a portion of a licensee's maximum demand for the
purposes of his undertaking is chargeable at the Grid Tariff,
the price payable for that portion shall not be greater than the
average price which would have been payable had the whole of the
said maximum demand of the licensee been chargeable at the Grid
Tariff.
(6) The Grid Tariff may contain provisions for-
(a) Adjustment of price having regard to the power factor of
supply taken or the cost of, fuel or both;
(b) A minimum charge related to a past or prospective demand
of a licensee on the Board.
(7) The Grid Tariff may contain such other terms and conditions,
not inconsistent with this Act and the regulations, as the Board
thinks fit.
47. POWER TO BOARD TO MAKE ALTERNATIVE ARRANGEMENTS WITH LICENSEES.
-Notwithstanding anything contained in Sees. 34 to 37 and sub-section
(2) of Sec. 46 but subject to any regulations made in this behalf,
the Board may make such arrangements as may be mutually agreed
with any licensee whose area of supply is situated within an area
for which a scheme is in force, in regard to the purchase or sale
of electricity and the price thereof” or the purchase, operation
or control of any generation station or main transmission line:
Provided that in making any such arrangement the Board shall
not show undue preference to any licensee.
STATE AMENDMENT
UTTAR PRADESH. -Substitution of Sec. 47-A by a new section. –For
Sec. 47-A of the Principal Act, the following section shall be
substituted and be deemed always to have been substituted, namely:
“37-A. Security. -Notwithstanding anything in this act,
and notwithstanding that no arrangements have been mutually agreed
under Sec. 47 or that no regulations have been made in that behalf:
(a) The Board shall not be bound to comply with any requisition
to supply electricity to a licensee unless the licensee within
fourteen days after the service on him by the Board of a notice
in writing in that behalf, tenders to the Board security in such
amount as is equivalent to the average charges for two months
supply of electricity during the preceding financial year to the
licensee (hereinafter referred to as the average charges), and
where an amount in excess of the average charges is demanded by
the Board as security, the Board shall determine the same after
giving an opportunity of hearing to the licensee;
(b) The Board shall be entitled to discontinue such supply if
the licensee has not already given security, or if any security
given by him has become invalid or insufficient, and such licensee
fails to furnish security or to make up the security to a sufficient
amount, as the case may be, within seven days after the service
upon him of notice from the Board requiring him so to do.”1
1. Vide The Electricity Laws (Uttar Pradesh Amendment) Act,
1974 (36 of 1974), Sec. 7; published in the U.P. Gazette, Extraordinary
dated 19th December 1974.
48. POWER TO LICENSEE TO CARRY OUT ARRANGEMENTS UNDER THIS ACTS.
- Where under any provision of this Act the Board is authorised
or required to enter into arrangements with any licensee for any
purpose, then notwithstanding anything contained in any law or
in any licence, memorandum of association or other instrument
regulating the constitution or powers of the licensee, it shall
be lawful for the licensee to enter into and carry out any such
arrangements.
1[49. PROVISION FOR THE OF ELECTRICITY BY THE BOARD TO PERSONS
OTHER THAN LICENSEES. -
(1) Subject to the provisions of this Act and of regulations,
if any made in this behalf, the Board may supply electricity to
any person not being a licensee upon such terms and conditions
as the Board thinks fit and may for the purposes of such supply
frame uniform tariffs.
(2) In fixing the uniform tariffs, the Board shall have regard
to all or any of the following factors, namely:
(a) The nature of the supply and the purposes for which it is
required;
(b) The coordinated development of the supply and distribution
of electricity within the State in the most efficient and economical
manner, with particular reference to such development in areas
of not for the time being served or adequately served by the licensee;
(c) The simplification and standardisation of methods and rates
of charges for such supplies;
(d) The extension and cheapening supplies of electricity to sparsely
developed areas.
(3) Nothing in the foregoing provisions of this section shall
derogate from the power of the Board, if it considers it necessary
or expedient to fix different tariffs for the supply of electricity
to any person not being a licensee, having regard to the geographical
position of any area, the nature of the supply and purpose for
which supply is required and any other relevant factors.
(4) In fixing the tariffs and terms and conditions for the supply
of electricity, the Board shall not show undue preference to any
person.]
1. Subs. by Act 30 of 1966, Sec. 11, for Sec. 49 (retrospectively)
(w.e.f. 16th September, 1966).
STATE AMENDMENTS
KARNATAKA. -In Sec. 49 of the Electricity (Supply) Act, 1948
(Central Act 54 of 1948) (hereinafter referred to as Principal
Act after sub-section (4) the following sub-sections shall be
inserted, namely:
“(5) The party to an agreement or any other arrangement
entered into prior to the commencement of the Electricity (Supply)
(Karnataka Amendment) Act, 1981, and providing for supply of electricity
by the Board shall notwithstanding anything contained in the instrument
of agreement or other arrangement or in any law including this
Act, in force at such commencement, pay, in respect of electricity
so supplied after such commencement, price (by whatever name called)
calculated in accordance with the uniform tariff framed or modified
from time to time, under sub-section (1) and applicable to the
category to which such party belongs.
(6) The party to any such agreement or arrangement entered into
after the commencement of the Electricity (Supply) (Karnataka
Amendment) Act, 1981, shall, notwithstanding anything contained
in this Act, or in such agreement or other arrangement, pay, in
respect of electricity supplied by the Board, price (by whatever
name called) calculated in accordance with the uniform tariff
framed or modified from time to time under sub-section (1) and
applicable to the category to which such party belongs.
(7) The uniform tariff framed under sub-section (1) I may, subject
to sub-section (2), be modified from time to time by the Board.”1
1. Vide the Electricity (Supply) (Karnataka Amendment) Act, 1981
(33 of 1981).
KERALA. -In Sec. 49 of the Electricity (Supply) Act, 1948 (Central
Act 54 of 1948), hereinafter referred to as Principal Act after
sub-section (4), the following sub-section shall be inserted,
namely:-
“(5) The party to an agreement or any other arrangement
entered into prior to the commencement of The Electricity (Supply)
Kerala Amendment Act, 1983 and providing for supply of electricity
by the Board shall, notwithstanding anything contained in the
instrument of such agreement or other arrangement or in any law
including this Act in force at such commencement,-
(a) Pay, in respect of the electricity supplied after such commencement,
such price (by whatever name called) calculated in accordance
with the uniform tariff framed or modified from time to time under
sub-section (1) and applicable to the category lo which such party
belongs:
(b) Not be entitled to reimbursement by the Board from such price
of any amount, whether on account of increase in price of the
electricity supplied to it by the Board or on account of any tax,
duty, surcharge, levy, cess or any other imposition or charges
payable by such party in respect of the electricity supplied to
it by the Board “1
1. Vide the Electricity (Supply) (Kerala Amendment) Act, 1983,
(7 of 1983),
ORISSA. -In The Electricity (Supply) Act, 1948 (54 of 1948),
in its application to the State of Orissa (hereinafter referred
to as the Principal Act), after Sec. 49, the following new section
shall be inserted and shall be deemed always to have been inserted,
namely:
“49-A.Power of the Board to revise certain tariffs. –
(1) Notwithstanding anything contained in this Act or in any
arrangement, undertaking, commitment or concessions made before
the date of commencement of the Electricity (Supply) (Orissa Amendment)
Act, 1981 by the Orissa State Electricity Board or the Government
of the State of Orissa, or in any judgment or order of any Court,
it shall be lawful for the said Board to revise, from time to
time, the tariffs fixed for the supply of electricity to persons
other than licensees and to frame uniform tariffs for the purpose
of such supply.
(2) In revising the tariffs or framing uniform tariffs under
sub- section (1), the said Board shall be guided by the principles
set out in Sec. 59 and as respects any period commencing on and
from the 16th day of September, 1966, by the principles set out
in sub- sections (2), (3) and (4) of Sec. 49.
(3) All such agreements, undertakings, commitments or concessions
as are referred to in sub-section (1) shall, in so far as they
are inconsistent with the provisions of sub-sections (1) and (2)
and to the extent of the tariffs fixed or the provisions made
therein - for such fixation, be void and shall be deemed always
to have been void.”1
1. Vide The Electricity (Supply) (Orissa Amendment) Act, 1981
(19 of 1981).
RAJASTHAN. -Insertion of new Sees. 49-A and 49-B in Central Act
LIV of 1948. -In The Electricity (Supply) Act, 1948 (54 of 1948),
in its application to the State of Rajasthan, after Sec. 49, the
following new sections shall be and shall be deemed always to
have been inserted, namely:-
“49-A. Power of the Board to revise certain tariffs. –
(1) Notwithstanding anything contained in this Act or in any
agreement, undertaking, commitment or concessions made, before
the first day of April, 1964, by the Rajasthan State Electricity
Board or Government of Rajasthan or by the ruler or Government
of any covenanting State of Rajasthan, or in any judgment or order
of any Court, it shall be lawful for the said Board to revise,
from time to time, the tariffs fixed for the supply of electricity
to persons other than licensees and to frame uniform tariffs for
the purpose of such supply.
(2) In revising the tariffs or framing uniform tariffs, under
sub-section (1), the said Board shall be guided by the principles
set out in Sec. 59 and as respects any period commencing on and
from the 16th day of September, 1966, by the principles laid down
in sub-sections (2), (3) and (4) of Sec. 49.
(3) All such agreements, undertakings, commitments or concessions,
are referred to in sub-section (1) shall, in so far as they are
inconsistent with the provisions of sub-sections (1) and (2) and
to the extent of the tariffs fixed or provisions made therein
for such fixation, be void and shall be deemed always to have
been void.
Explanation. -For purposes of this section and Sec. 49-B, the
expression 'covenanting State' shall have the meanings assigned
to them by The Rajasthan General Clauses Act, 1955 (Rajasthan
Act 8 of 1955).
“49-B.Validation of certain tariffs, etc.-Notwithstanding
anything contained in the Act or in any agreement, undertaking
or concession referred to in sub-section (1) of Sec. 49-A, or
in any judgment or order of any Court-
(a) Any amount realised, or demand made or created, by the Rajasthan
State Electricity Board, or the Government of Rajasthan or the
ruler or Government of any covenanting State of Rajasthan, according
to the uniform tariffs in force from time to time, for or against
any person claiming any special tariffs under any such agreement,
undertaking or concession, before the publication in the Official
Gazette of the Electricity Supply (Rajasthan Amendment) Ordinance,
1976, shall be deemed to have been validly realised, made or created
under this Act as amended by the said Ordinance;
(b) No such realisation of amount or making or creation of demand
shall be questioned in any Court, and if questioned, the objection
shall not be maintained by such Court, merely on the ground that
there exists an agreement, undertaking or concession, as aforesaid,
fixation special tariffs or providing for fixation of special
tariff for the sale of electricity to such person;
(c) All suits, applications or proceedings pending on the date
of the publication in the Official Gazette of the Electricity
Supply (Rajasthan Amendment) Ordinance, 1976, in any Court or
before any arbitrator, whether appointed by any Court or by the
parties to such agreement shall, in so far as they question the
power of the said Board to levy uniform tariffs in accordance
with this Act as amended by the said Ordinance or to revise the
special tariffs fixed in such agreements, in disregard of the
terms of such agreement, abate and any such proceeding before
the said arbitrator shall cease to have effect and any such reference
for arbitration shall be deemed to have been with drawn from such
arbitrator; and
(d) No Court shall execute any decree, order or award for the
refund of any amount of uniform tariffs recovered by the Rajasthan
State Electricity Board or the Government of Rajasthan or the
ruler or Government of any covenanting State.”1
1. Vide the Electricity (Supply) (Rajasthan Amendment) Act, 1976
(28 of 1976), published in the Rajasthan Gazette, Part 4, and
Ka, dated 17th April 1976.
WEST BENGAL, -(i) In its application to West Bengal after sub-section
(4) of Sec. 49 of the Principal Act, the following sub-section
shall be inserted:
“(5) Notwithstanding anything contained in this Act or
in any agreement, instrument or undertaking, having effect by
virtue of this Act, or any commitment or concession made by the
Board or by the judgment, decree or order of any Court or by any
order of any other authority prior to the commencement of the
Electricity (Supply) (West Bengal Amendment) Act, 1994, it shall
be lawfid for the Board to frame uniform tariff from time to time,
as the case may be, for such supply:
Provided that in framing the uniform tariff under sub- section
(1) or in revising such tariff, the Board shall be guided by the
provisions of Sec. 59 and sub-section (2), sub-section (3) and
sub-section (4) of this section:
Provided further that every such agreement, instrument or undertaking,
or commitment or concession, shall, in so far as it is inconsistent
with the first proviso as to the extent of tariff fixed or any
other matter relating to such-fixation, be void and shall be deemed
always to have been void.”1
(ii) After Sec. 49 of the Act, the following sections shall
be inserted, namely:
1. Received the assent of the President on 20th April, 1995,
published in the Calcutta Gazette, Extra. Part. 111 dated 20th
April 1995.
“49-A. Price for supply of electricity. -The price, by
whatever name called, for electricity supplied by the Board to
any party or person, not being a licensee, by virtue of an agreement,
instrument or undertaking, having effect by virtue of this Act,
before or after the commencement of the Electricity (Supply) (West
Bengal Amendment) Act, 1994, shall be calculated in accordance
with the uniform tariff framed under sub-section (1) of Sec. 49
as may be applicable to the category to which such party or person
belongs, or the tariff are revised, as the case may be, and shall,
notwithstanding anything contained in such agreement, instrument
or undertaking or in this Act or in any other law for the time
being in force, be paid by such party or person.
“49-B. Recovery of dues as public demand in certain circumstances.
- Where any sum is due from a consumer on account of supply of
electricity or other charges and where such defaulting consumer,
being an industrial or commercial concern or establishment, becomes
sick financially or otherwise and is wound up or closed or put
to sale, or transfers its ownership or management, or is amalgamated
with any other industrial or commercial concern or establishment,
or where any -scheme is drawn up for re-opening or revitalizing
or restricting such industrial or commercial concern or establishment,
either under its own ownership or management or under any new
ownership or management, whether in the former name or in a new
name, for continuing the same process or function or production
as was in vogue prior to its becoming sick or for any other purposes,
either on its own or by the order of any Court, Tribunal or other
authority, then, notwithstanding the foregoing provisions of this
section or the order of the Court, Tribunal or other authority,
the sum due to the Board or a licensee shall stand recoverable
and shall be recovered from the sale proceeds or from the former
owner or manager or new owner or manager, as the case may be,
as being a charge recoverable as a public demand under the Public
Demands Recovery Act, 1913, and the authority under whose order
such industrial or commercial concern or establishment is wound
up, closed or put to sale, or the Ownership or management is transferred,
or is amalgamated, or any scheme is drawn up for its re-opening
or revitalization or restructuring, as the case may be, shall
take such steps as may be necessary for expeditious recovery and
payment of the dues of the Board or the licensee, as the case
may be, from such sale proceeds or from the owner or manager together
with interest at the rate of Current bank rat e on the outstanding
sum as aforesaid for the period commencing from the date on which
such sum became due till the date of payment.,”1
1. Vide West Bengal Act 50 of 1994, Secs. 3 and 4.
50. BOARD NOT TO SUPPLY ELECTRICITY CERTAIN CIRCUMSTANCES. -Nothing
contained in Sees. 34, 35 and 36 shall apply in any case where
under Sec. 19; it is not permissible for the Board to supply electricity
directly to a licensee owning a generating station; and nothing
in Sees. 46, 47 and 49 shall empower the Board to supply electricity
directly to any licensee or person to whom it is not otherwise
entitled so to supply electricity.
51. PROVISIONAL PAYMENTS. -Where the price to be paid for electricity
by or to the Board under this Act cannot be finally ascertained
until after the end of a year of account, the amount to be paid
shall be ascertained as soon as practicable thereafter, but the
party from whom the payment is due shall make to the other monthly
payments on account of the net amounts due in accordance with
estimates made for the purpose, subject to adjustment as soon
after the end of the year of account as the actual liability can
be ascertained.
52. LOWER LIMIT OF POWER FACTOR IN SUPPLY BY BOARD. -Unless otherwise
agreed between the Board and the licensee, no supply of electricity
taken by a licensee from the Board under this Act shall be taken
at an average power factor below 0.85 during the period of maximum
demand of the licensee in any month, and in the event of the average
power factor as aforesaid being lower than 0.85, the licensee
shall within a reasonable time take such measures the cost of
which shall not be borne by the Board, as may be necessary to
raise it to a value not lower than 0.85.
53. PROVISION OF ACCOMMODATION AND RIGHT OF WAY.-
(1) Where the Board for the purposes of any arrangements which
it has made with any licensee under this Act requires accommodation
on, in, under or over the premises of the licensee for any works
or apparatus to be provided by the Board, the licensee shall,
if suitable and sufficient accommodation exists, grant such accommodation
free of cost to the Board, or if such accommodation does not exist,
it shall be provided upon such terms and conditions as may be
agreed between the Board and the licensee.
(2) The Board and any licensee shall each have a right of access
at all times to his own property on, in, over and under the property
of the other.
54. POWER TO BOARD TO CONNECT METERS, ETC. TO APPARATUS OF LICENSEES.
-The Board shall have power to connect with the apparatus of any
licensee any such correct meters, switch-gear and other equipment
as may be necessary to enable it to carry out the provisions of
this Act, and such meters, switch-gear and other equipment shall,
unless otherwise agreed, be provided and maintained by the Board
at its own cost.
1[55. COMPLIANCE OF DIRECTIONS OF REGIONAL ELECTRICITY BOARD,
ETC, BY LICENSEES OR GENERATING COMPANIES. –
(1) Until otherwise specified by the Central Government, the
Central Transmission Utility shall operate the Regional Load Dispatch
Centers and the State Transmission Utility shall operate the State
Load Dispatch Centers.
(2) The Regional Load Despatch Centre shall be the apex body
to ensure integrated operation of the power system in the concerned
region.
(3) The Regional Load Despatch Centre may give such directions
and exercise such supervision and control as may be required for
ensuring integrated grid operations and for achieving the maximum
economy and efficiency in the operation of the power system in
the region under its control.
(4) Subject to the provisions of sub-section (3), the State Load
Despatch Centre in a State may give such directions and exercise
such supervision and control as may be required for ensuring the
integrated grid operations and for achieving the maximum economy
and efficiency in the operation of the power system in that State.
(5) Every licensee, transmission licensee, Board, Generating
Company, generating stations, sub-stations and any other person
connected with the operation of the power system shall comply
with the directions issued by the Load Despatch Centres under
sub-sections (3) and (4).
(6) All directions issued by the Regional Load Despatch Centres
to any transmission licensee of State transmission lines or any
other licensee of the State or Generating Company (other than
those connected to inter-State transmission system) or sub-station
in the State shall be issued through the State Load Despatch Centre
and the State load Despatch Centre shall ensure that such directions
are duly complied by the transmission licensee or licensee or
generating company or sub-station.
(7) Subject to the above provisions of this section, the Regional
Electricity Board in the region from time to time may mutually
agree on matters concerning the smooth operation of the integrated
grid and economy and efficiency in the operation of the power
system in that region and every licensee, transmission licensee
and others involved in the operation of the power system shall
comply with the decision of the Regional Electricity Board.
(8) The Regional Load Despatch Centre or the State Load Despatch
Centre, as the case may be, shall enforce the decision of the
Regional Electricity Boards.
(9) Subject to regulations made under The Electricity Regulatory
Commissions Act, 1998 (14 of 1998) by the Central Commission,
in the case of Regional Load Despatch Centres or the State Commission
in the case of State Load Despatch Centres, any dispute with reference
to the operation of the power system including grid operation
and as to whether any directions issued under sub-section (3)
or sub-section (4) is reasonable or not, shall be referred to
the Authority for decision:
Provided that pending the decision of the Authority, the directions
of the Regional Load Despatch Centres or the State Load Despatch
Centres, as the case may be, shall be complied with.
(10) Until the Central Commission is established, the Central
Government and thereafter the Central Commission in the case of
Regional Load Despatch Centre and until the State Commission is
established, the State Government and thereafter the State Commission
in the case of the State Load Despatch Centre of that State, may,
by notification, specify the fees and charges to be paid to the
Regional Load Despatch Centres and the State Load Despatch Centres,
as the case may be, for undertaking the load despatch functions
entrusted by the Central Government or by the State Government,
as the case may be.
(11) The provisions of sub-section (3) of Sec. 4-B shall apply
in relation to any notification issued by the Central Government
or the Central Commission as the case may be under sub-section
(10), as they apply in relation to the rules made by that Government
under Chapter 11.]
1. Subs. by Act No. 22 of 1998, Sec.11, dated 10th August 1998.
56. LEASES OF GENERATING STATIONS. -No licensee shall except
with the previous approval in writing of the Board subject to
any conditions which the Board may think fit to impose, enter
into any arrangement whereby any generating station is to be let
or held on lease by him, and any such arrangement entered into
in contravention of this sub-section shall be void and of no effect.
1[57. LICENSEE’S CHARGES TO CONSUMERS. -The provisions
of the Sixth Schedule 2[* * *] shall be deemed to be incorporated
in the licence of every licensee, not being a local authority-
(a) In the case of a licence granted before the commencement
of this Act, from the date of the commencement of the licensee's
next succeeding year of account; and
(b) In the case of a licence granted after the commencement of
this Act, from the date of the commencement of supply, and as
from the said date, the licensee shall comply with the provisions
of 31th said Schedule) accordingly, and any provisions of The
Indian Electricity Act, 1910 (9 of 1910), and the licence granted
to him there under and of any other law, agreement or instrument
applicable to the licensee shall, in relation to the licensee
be void and of no effect in so far as they are inconsistent with
the provisions of Sec. 57-A and 3[the said Schedule].
1. Subs. by Act 10I of 1956, Sec. 14, for Sec. 57 (w.e.f. 30th
December, 1956).
2. The words “and the Seventh Schedule” omitted by
the Act 23 of 1978, Sec. 6 (w.e.f. 3rd June, 1978).
3. Subs. by ibid. Sec. 6, for the words “the said Schedules”
(w.e.f. 3rd June, 1978).
57-A. RATING COMMITTEES. –
(1) Where the provisions of the Sixth Schedule 1[* * *] are under
Sec. 57 deemed to be incorporated in the licence of any licensee,
the following provisions shall have effect in relation to the
licensee, namely:
(a) The Board or where no Board is constituted under this Act,
the State Government-
(i) May, if satisfied, that the licensee has failed to comply
with any of the provisions of the Sixth Schedule; and
(ii) Shall, when so requested by the licensee In writing, constitute
a rating committee to examine the licensee's charges for the supply
of electricity and to make recommendations in that behalf 'Lo
the State Government:
Provided that where it is proposed to constitute a rating committee
under this section on account of the failure of the licensee to
comply with any provisions of the Sixth Schedule, such committee
shall not be constituted unless the licensee has been given a
notice in writing of thirty clear days (which period, if the circumstances
so warrant may be extended from time to time) to show cause against
the action proposed to be taken:
Provided further that no such rating committee shall be constituted
if the alleged failure of the licensee to comply with any provisions
of the Sixth Schedule raises any dispute or difference as to the
interpretation of the said provisions or any matter arising there
from and such difference or dispute has been referred by the licensee
to the arbitration of the Authority under Para. XVI of that Schedule
before the notice referred to in the preceding proviso was given
or is so referred within the period of the said notice:
Provided further that no rating committee shall be constituted
in respect of a licensee within three years from the date on which
such a committee has reported in respect of that licensee, unless
the State Government declares that in its opinion circumstances
have arisen rendering the orders passed on the recommendations
of the previous rating committee unfair to the licensee or any
of his consumers,-
(b) A rating committee under Cl. (a) shall, -
(i) Where such committee is to be constituted under sub clause
(i) of that clause, be constituted not later than three months
after the expiry of the notice referred to in the first proviso
to that clause;
(ii) Where such committee is to be constituted at the request
of the licensee be constituted within three months of the date
of such request;
(c) A rating committee shall, after giving the licensee a reasonable
opportunity of being heard and after taking into consideration
the efficiency of operation and management and the potentialities
of his undertaking report to the State Government within three
months from the date Of its constitution, making recommendations
with reasons may therefore, regarding the charges for electricity
which the license make to any class or classes of consumers so,
however, that the recommendations are not likely to prevent the
licensee from earning clear profit sufficient when taken with
the sums available in the Tariffs and Dividends Control Reserve
to afford him a reasonable return as defined in the Sixth Schedule
during his next succeeding three years of account:
Provided that the State Government may, if it so deems necessary,
extend the said period of three months by a further period not
exceeding three months within which the report of the rating committee
may be submitted to it;
(d) Within one month after the receipt of the report under Cl.
(c), the State Government shall cause the report to be published
in the Official Gazette, and may at the same time make an order
in accordance therewith fixing the licensee's charges for the
supply of electricity with effect from such date, not earlier
than two months or later than three months, after the date of
publication of the report as may be specified in the order and
the licensee shall forthwith give effect to such order;
(e) The charges for the supply of electricity fixed under Cl.
(d) shall be in operation for such period not exceeding three
years as the State Government may specify in the order:
Provided that nothing in this clause shall be deemed to prevent
a licensee from reducing at any time any charges so fixed.
(2) Where a Board is constituted under this Act, the rating committee
shall consist of three members as follows:
(i) One member shall be nominated by the State Government who
Shall all be a person who is or has been judicial officer not
below the rank of a District Judge;
(ii) One member shall be a member of the Board having experience
of accounting and financial matters; and
(iii) One member shall be a representative co-opted jointly by
the two members referred to in Cls. (i) and (ii) from an association
of licensees of which the licensee concerned is or is eligible
to be a member and if there is no such association, from such
Chamber of Commerce or similar body as the State Government may
direct.
(3) Where no Board is constituted under this Act the rating committee
shall consist of five members of whom three members shall be nominated
by the State Government, one member shall be nominated by the
licensee and one member shall be nominated by the association
referred to in sub-section (2) or if there is no such association,
by such Chamber of Commerce or similar body as the State Government
may direct.
(4) Of the three members to be nominated by the State Government
under subsection (3), one shall be a person who is or has been
a judicial officer not below the rank of District Judge, one shall
be a registered accountant within the meaning of the Chartered
Accountants Act, 1949 (38 of 1949), having -it least ten years'
experience and one shall be a person with administrative experience.
(5) The judicial member of a rating committee shall be its Chairman.
(6) A rating committee may act notwithstanding that one of its
member is absent.
(7) The expenditure incurred in connection with a rating committee
as certified by it shall be payable, -
(a) Where the rating committee was constituted at the request
of a licensee, or where the rating committee has held that the
licensee has failed to comply with any of the provisions of the
Sixth Schedule, by the licensee from that part of the clear profit
to which the licensee is entitled under that Schedule;
(b) In any other case, by the Board or the State Government as
the case may be.
(8) Where a licensee makes default in paying any amount which
he is liable to pay under sub-section (7), such amount may, on
application to a Civil Court having jurisdiction, be recovered
from the licensee by the distress and sale of any moveable property
of the licensee.
1. The words “and the Seventh Schedule” omitted by
Act 23 of 1978 Sec. 7 (w.e.f. 3rd June, 1978).
57 B. POWER OF RATING COMMITTEE TO CALL FOR INFORMATION, ETC.
-A rating committee constituted under Sec. 57-A may, for the purpose
of discharging its functions, by notice in writing, require the
licensee to give such information, or to furnish such accounts
and other documents in his possession or power, as may be specified
in the notice.]
58. POWER TO DIRECT AMORTISATION AND TARIFFS POLICIES OF LICENSEES
BEING LOCAL AUTHORITIES. -The Board or where no Board is constituted
under this Act, the State Government shall have power to direct
the amortization and tariffs policies of any licensee, being a
local authority, with respect to his licensed undertaking in such
manner as the Board or the State Government, as the case may be,
after giving the local authority a reasonable opportunity of being
heard, considers expedient for the purposes of the Act; and the
licensee, being a local authority, the provisions of any other
law or of any rules made or directions given there under notwithstanding,
shall give effect to any such directions of the Board or the State
Government, as the case may be:
1[Provided that the Board shall not issue any directions under
this section except after obtaining prior approval of the State
Government.]
1. Ins. by Art 101 of 1956, Sec. 15 (w.e.f. 30th December, 1956).
CHAPTER VI
THE BOARD'S FINANCE, ACCOUNTS AND AUDIT
1[59. GENERAL PRINCIPLES FOR BOARD'S FINANCE. –
(1) The Board shall, after taking credit for any subvention from
the State Government under Sec. 63, carry on its operations under
this Act and adjust its tariffs so as to ensure that the total
revenues in any year of account shall, after meeting all expenses
properly chargeable to revenues, including operating, maintenance
and management expenses, taxes (if any) on income and profits,
depreciation and interest payable on all debentures, bonds and
loans, 2[leave such surplus as is not less than three per cent.,
or such higher percentage, as the State Government may, by notification
in the Official Gazette, specify in this behalf, of the value
of the fixed assets of the Board in service at the beginning of
such year.
EXPLANATION. -For the purposes of this sub-section, value of
the fixed assets of the Board in service at the beginning of the
year means the original cost of such fixed assets as reduced by
the aggregate of the cumulative depreciation in respect of such
assets calculated in accordance with the provisions of this Act
and consumers contributions for service lines.]
(2) In specifying 3[any higher percentage] under sub-section
(1), the State Government shall have due regard to the availability
of amounts accrued by way of depreciation and the liability for
loan amortization and leave-
(a) A reasonable sum to contribute towards the cost of capital
works; and
(b) Where in respect of the Board, a notification has been issued
under sub-section (1) of Sec. 12-A, a reasonable sum by way of
return on the capital provided by the State Government under sub-section
(3) of that section and the amount of the loans (if any) converted
by the State Government into capital under sub-section (1) of
Sec. 66-A.]
1. Subs. by Act, 23 of 19'78, Sec. 8, for Sec. 59 (w.e.f. 3rd
June, 1978).
2. Subs. by Act 16 a!' 1983, for the words “leave such
surplus, as the State Government may, from time to time, specify”
(w.e.f. 1st April, 1985).
3. Subs. by ibid., for the words “the surplus”.
60. BOARD TO ASSUME OBLIGATIONS OF STATE GOVERNMENT IN RESPECT
OP MATTERS TO WHICH THIS ACT APPLIES. -
(1) All debts and obligations incurred, all contracts entered
into and all matters and things engaged to be done by, with or
for the State Government for any of the purposes of this Act before
the first constitution of the Board shall be deemed to have been
incurred, entered into or engaged to be done by, With or for the
Board; and all suits or other legal proceedings instituted or
which might but for the issue of the notification under sub-section
(4) of Sec. I have been instituted by or against the State Government
may be continued or instituted by or against the Board.
1[(1-A) All schemes sanctioned by the State Government and transferred
to the Board shall, for the purposes of this Act, be deemed to
have been sanctioned by the Board.]
(2) All expenditure which the State Government may, not later
than 2[one year] after the first constitution of the Board, declare
to have been incurred 3[* * *] on capital account in connection
with the purposes of this Act shall be deemed to be a loan advanced
to the Board under Sec. 64 on the date of the said declaration,
and all the assets acquired by such expenditure shall thereupon
vest in the Board.
1. Ins. by Act 101 of 1956, Sec. 16 (w.e.f. 30th December, 1956).
2. Subs. by Act 23 of 1978, Sec. 9 for the words “two months”
(w.e.f. 3rd June, 1978).
3. Certain words omitted by Act 23 of 1978, Sec. 9.
STATE AMENDMENTS
PUNJAB, HARYANA: CHANDIGARH. -After sub-section (2) of Sec. 60,
add the Following:
“ (2-A) Notwithstanding anything contained in this Act,
the State Government may, in declaring expenditure on capital
account under sub-section (2), include therein all expenditure
incurred by it on capital account in connection with the purposes
of this Act on the electrical portion, of the Bhakra-Nangal Project,
and on such inclusion, such expenditure shall be deemed to be
a loan advanced to the Board under Sec. 64 on the date of the
said declaration, and all the assets acquired by such expenditure
shall thereupon vest in the Board subject to the provisions of
any agreement as may have been or may be executed in that behalf
by the State Government with the Government of rajasthan”.
1
1. Punjab Act 9 of 1959 (16th April, 1959), vide Central Act
31 of 1966, Sec. 88 (1st November, 1966).
UTTAR PRADESH.- In Sec. 60 of the Principal Act, after sub-section
(2), the following sub-sections shall be inserted, and be deemed
to have been inserted on I st April 1965, namely: -
“(3) All expenditure, which the State Government may, not
later than two months from the commencement of the Electricity
Laws (Uttar Pradesh Amendment) Act, 1983, declare to have been
incurred by it on capital account in connection with the purposes
of this Act in respect of the Rihand Hydro Power System shall
also be deemed to be a loan advanced to the Board under Sec. 64
on the date of commencement of this sub-section and all the assets
acquired by such expenditure shall vest in the Board with effect
from such commencement.
(4) The provisions of sub-sections (1) and (I-A) shall, subject
to the provisions of sub-section (5) apply in relation to the
debts and obligations incurred, contracts entered into and matters
and things engaged to be done by, with or for the State Government
in respect of the Rihand Hydro Power System after the first constitution
of the Board and before the commencement of this sub-section as
they apply in relation to debts and obligations incurred, contracts
entered into, matters and things engaged to be done by, with or
for the State Government for any of the purposes of this Act before
the first constitution of the Board.
(5) All such contracts entered into by the State Government for
supply of electrical energy based on or connected with the generation
of electricity from the Rihand Hydro Electric Generating Station
to any consumer and any contract entered into by the Board on
or after 1st April, 1965 for the supply of electrical energy to
such consumer shall operate subject to the modifications specified
in the following clauses, which shall take effect from the date
of the commencement of The Electricity Laws (Uttar Pradesh Amendment)
Act, 1983 (hereinafter referred to as the said date): -
(a) The rates to be charged by the Board for the energy supplied
by it to any consumer under any contract for which the payment
will be due for the first time on or after the said date shall
be such as may with the previous approval of state Government
be fixed by the Board, having due regard to the geographical position
of the area of supply, the nature of the supply and purpose for
which supply is required and any other relevant factor;
(b) If the State Government directs the Board under Sec. 22-B
of The Indian Electricity Act, 1910 or under any other law for
the time being in force to reduce the supply of energy to a consumer
and thereupon the Board reduces the supply of energy to a consumer
accordingly, the consumer concerned shall not be entitled to any
compensation for such reduction, and if the consumer consumes
energy in excess of the reduced limit fixed under the said Sec.
22-B or any other law for the time being in force, as the case
may be, then the Board shall have the right to discontinue the
supply to the consumer without notice, and without prejudice to
the said right of the Board, the consumer shall be liable to pay
such excess consumption at double the normal rate fixed under
Cl. (a):
(c) Any arbitration agreement contained in such contract shall
be subject to the provisions of this sub-section.” 1
1. Vide U.P. Act No 12 of 1983, Sec. 7.
1[60-A. PERIOD OF LIMITATION EXTENDED IN CERTAIN CASES. -Where
the right to recover any amount due to the State Government for
or in connection with the consumption of electricity is vested
in the Board and the period of limitation to enforce such right
has expired before the constitution of the Board, or within three
years of its constitution, then, notwithstanding anything contained
in The Indian Limitation Act, 1908 (9 of 1908)2 or any other law
for the time being in force relating to limitation of action,
the Board may institute a suit for the recovery of such amount,-
(i) Where it has been constituted before the commencement of
The Electricity (Supply) Amendment Act, 1966 (30 of 1966), within
three years of such commencement; and
(ii) Where it has been constituted after such commencement, within
three years of its constitution.]
1. Ins. by Act 30 of 1966, Sec. 12 (w.e.f. 16th September, 1966).
2. See now the Limitation Act, 1963 (36 of 1963).
61. ANNUAL FINANCIAL STATEMENT. -
(1) In February of each year the Board shall submit to the State
Government a statement in the prescribed form of the estimated
capital and revenue receipts and expenditure for the ensuing year.
(2) The said statement shall include a statement of the salaries
of, 1[members and officers and other employees] of the Board and
of such other particulars as may be prescribed.
(3) The State Government shall as soon as may be after the receipt
of the said statement cause it to be laid on the table of the
2[House], or as the case may be, 3[Houses] of the State Legislature;
and the said statement shall be open to discussion therein, but
shall not be subject to vote.
(4) The Board shall take into consideration any comments made
on the said statement in the State Legislature.
(5) The Board may, at any time during the year in respect of
which a statement under sub-section (1) has been submitted, submit
to the State Government a supplementary statement, and all the
provisions of the section shall apply to such statement as they
apply to the statement under the said sub-section.
1. Subs. by Act 23 of 1978, Sec. 10, for the words “members,
officers and servants” (w.e.f 3rd June, 1978).
2. Subs. by the A.0. 1950 for the word “Chamber”.
3. Subs. by ibid, for the words “Chambers” .
62. RESTRICTION ON UNBUDGETED EXPENDITURE. -
(l) Save where in the opinion of the Board circumstances of extreme
urgency have arisen, no sum exceeding 1[seventy-five thousand]
rupees on account of recurring expenditure or exceeding 2[three
lakhs] of rupees on account of non-recurring expenditure shall
be expended by the Board in any year of account unless such sum
has been included in a statement submitted under sub-section (1)
or sub-section (5) of Sec. 61.
(2) Where any such sum is expended under circumstances of extreme
urgency, 3[it shall be expended in accordance with the regulations
made by the Board with the previous approval of the State Government
and] a report thereon indicating the source from which it is proposed
to meet the expenditure shall be made as soon as practicable to
the State Government.
1. Subs. by act 30 of 1966. Sec. 13, for “twenty-five thousand”
(w.e.f. 16th September, 1966).
2. Subs. by Sec. 13, ibid, for the words “one lakh”.
3. Ins. by Act 23 of 1978, Sec. 11 (w.e.f. 3rd June, 1978).
63. SUBVENTIONS TO THE BOARD. -The State Government may, with
the approval of the State Legislature from time to time make subventions
to the Board for the purposes of this Act on such terms and conditions
as the State Government may determine.
64. LOANS TO THE BOARD. -The State Government may, from time
to time, advance loans to the Board on such terms and conditions,
not, inconsistent with the provisions of this Act, as the State
Government may determine.
65. POWER OF BOARD TO BORROW. -
(1) The Board may, from time to time, with the previous sanction
of the State Government and subject to the provisions of this
Act and to such conditions as may be prescribed in this behalf,
borrow any sum required for the purposes of this Act.
(2) Rules made by the State Government for the purposes of the
section may empower the Board to borrow by the 1[issue of debentures
or bonds] or otherwise and to make arrangements with bankers,
and may apply to the Board with such modifications as may be necessary
to be consistent with this Act the provisions of The Local Authorities
Loans Act, 1914 (9 of 1914) and the rules made there under as
if the Board were a local authority.
(3) The maximum amount which lure Board may at any time have
on loan under sub-section (1) shall be ten crores of rupees, unless
the State Government, with the approval of the State Legislative
Assembly, fixes a higher maximum amount.
(4) 2[Debentures or bonds issued] by the Board under this section
shall be issued, transferred, dealt with and redeemed in such
manner as may be prescribed.
1. Subs. by Act 23 of 1978, Sec. 12, for the words “issue
of bonds or stock” (w.e.f. 3rd June, 1978).
2. Subs. by Act 23 of 1978, Sec. 13, for the words “stock
issued” (w.e.f. 3rd June, 1978).
66. GUARANTEE OF LOANS. -The State Government may guarantee in
such manner as it thinks fit the payment of the principal and
interest of any loan proposed to be raised by the Board or of
either the principal or the interest:
Provided that the State Government shall, so long as any such
guarantees are in force lay before the 1[House] or, as the case
may be, 2[Houses] of the State Legislature in every year during
the budget session a statement of the guarantees, if any, given
during the current financial year of the State and an up-to-date
account of the total sums, if any, which have been paid out of
State revenue by reason of any such guarantees or paid into State
revenues towards repayment of any money so paid out.
1. Subs. by the A.0. 1950, for the word “Chamber”.
2. Subs. by ibid, for “Chambers”.
1[66-A. CONVERSION OF AMOUNT OF LOANS INTO CAPITAL. –
(1) Notwithstanding anything contained in Sec. 12-A, where any
loan has been obtained from the State Government by a Board, in
respect of which Board a notification has been made under sub-section
(1) of that section, or any loan is deemed to be advanced to such
Board by the State Government under sub-section (2) of Sec. 60,
the State Government may, if in its opinion it is necessary in
the public interest so to do, by order, direct that the amount
of such loan or any part thereof shall be converted into capital
provided to the Board on such terms and conditions as appear to
that Government to be reasonable in the circumstances of the case,
even if the terms of such loan do not include a term providing
for an option for such conversion.
(2) In determining the terms and conditions, of such conversion,
the State Government shall have due regard to the following circumstances,
that is to say, the financial position of the Board, the terms
of the loan, the rate of interest payable on the loan, the capital
of the Board, its loan liabilities and its reserves.
(3) Notwithstanding anything contained in this Act, where the
State Government has, by an order made under sub-section (1),
directed that any loan or any part thereof shall be converted
into capital, and such order has the effect of increasing the
capital of the Board, the capital of the Board shall stand increased
by the amount by which the conversion increases the capital of
the Board in excess of the capital specified under sub-section
(1) of Sec. 12-A:
Provided that the amount of the loan so converted together with
the capital provided under sub-section (3) of Sec. 12-A shall,
not exceed the amount represent if the aggregate of the outstanding
loans of the Board after such conversion].
1. Ins. by Act 23 of 1978, Sec. 13 (w.e.f. 3rd June, 1978).
1[67. PRIORITY OF LIABILITY OF THE BOARD. -The Board shall distribute
the surplus referred to in sub-section (1) of Sec. 59 to the extent
available in a particular year in the following order, namely:
(i) Repayment of principal of any loan raised, including redemption
of debentures or bonds issued under Sec. 65 which becomes due
for payment in the year or which became due for payment in any
previous year and has remained unpaid;
(ii) Repayment of principal of any loan advanced to the Board
by the State Government under Sec. 64 which becomes due for payment
in the year or which became due for payment in any previous year
and has remained unpaid;
(iii) Payment for purposes specified in sub-section (2) of Sec.
69 in such manner as the Board may decide.]
1. Subs. by Act 16 of 1983, Sec. 3 (w.e.f. 1st April, 1985).
1[67-A. INTEREST ON LOANS ADVANCED BY STATE GOVERNMENT TO BE
PAID ONLY AFTER OTHER EXPENSES. -Any interest which is payable
on loans advanced under Sec. 64 or deemed to have been advanced
under Sec. 60 to the Board by the State Government and which is
charged to revenues in any year may be paid only out of the balance
of the revenues, if any, of that year which is left after meeting
all the other expenses referred to in sub-section (1) of Sec.
59 and so much of interest as is not paid in any year by reason
of the provisions of this section shall be deemed to be deferred
liability and shall be discharged in accordance with the provisions
of this section in the subsequent year or years, as the case may
be.]
1. Ins. by Act 16 of 1983, Sec. 4.
1[68. CHARGING OF DEPRECIATION BY BOARD. –
(1) 2[* * *] The Board shall Provided each year for depreciation
such sum calculated in accordance with such principles as the
Central Government may, after consultation with the Authority
by notification in the Official Gazette, lay down from time to
time.
3[(2) * * * * *]
(3) The provisions of this section shall apply to the charging
or depreciation for the year in which the Electricity (Supply)
Amendment Act, 1978 (23 of 1978), comes into force.]
1. Subs. by Act 23 of 1978, Sec. 15 (w.e.f. 3rd June 1978).
2. The words “Subject to the provisions of Sec. 67”
emitted by Act 16 of 1983, Sec. 5 (w.e.f. 1st April 1985).
3. Sub-section (2) omitted by Act 16 of 1983, Sec. 5 (w.e.f.
1st April, 1985).
1[69. ACCOUNTS AND AUDIT. –
(1) The Board shall cause proper accounts and other records in
relation there to be kept, including a proper system of internal
check and prepare an annual statement of accounts, including the
profit and loss account and the balance-sheets in such form 2[as
the Central Government may, by notification in the Official Gazette,
prescribe by rules made in this behalf in consultation with the
Comptroller and Auditor-General of India and the State Governments].
(2) The accounts of the Board shall be audited by the Comptroller
and Auditor-General of India or by such person as he may authorize
in this behalf and any expenditure incurred by him in connection
with such audit shall be payable by the Board to the Comptroller
and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person
authorized by him in connection with the audit of the accounts
of the Board shall have the same rights, privileges and authority
in connection with such audit as the Comptroller and Auditor-General
of India has in connection with the audit of Government accounts
and in particular shall have the right to demand the production
of books, accounts, connected vouchers and other documents and
papers, and to inspect any of the offices of the Board.
(4) The accounts of the Board by certified as the Comptroller
and Auditor-General of India or any other person authorized by
him in this behalf together with the audit report thereon shall
be 3[forwarded to the Authority arid to the State Government within
six months of the close of the year to which the accounts and
audit report relate] and that Government may issue such instructions
to the Board in respect thereof as it deems fit and the Board
shall comply with such instructions.
(5) The State Government shall-
(a) Cause the accounts of the Board together with the audit report
thereon forwarded to it under sub-section (4) to be laid annually
before the State Legislature; and
(b) Cause the accounts of the Board to be published in the prescribed
manner and make available copies thereof on sale at a reasonable
price.]
4[(6) The provisions of sub-section (3) of Sec. 4-B shall apply
in relation to any rules made by the Central Government under
sub-section (1) as they apply in relation to rules made by that
Government under Chapter II.]
1. Subs. by Act 101 of 1956, Sec. 18, for original Sec. 69 (w.e.f.
30th December, 1956).
2. Subs. by Act 16 of 1983, Sec. 6, for the certain words (w.e.f.
1st April, 1985).
3. Subs. by Act 23 of 1978, Sec. 16, (w.e.f. 3rd June, 1978).
4. Ins. by Act 16 of 1983, Sec. 6 (w.e.f. 1st April 1985).
CHAPTER VII
MISCELLANEOUS
70. EFFECT OF OTHER LAWS. –
(l) No provision of The Indian Electricity Act, 1910 (9 of 19
1 0), or of any rules made there under or of any instrument having
effect by virtue of such law or rule Shall, so far as it is inconsistent
with any of the provisions of this Act, have any effect:
Provided that nothing in this Act shall be deemed to prevent
the State Government from granting, after consultation with the
Board, a licence not inconsistent with the provisions of The Indian
Electricity Act, 1910 (9 of 1910) to any person in respect of
such area and on such terms and conditions as the State Government
may think fit.
(2) Save as otherwise provided in this Act, the provisions of
this Act shall be in addition to, and not in derogation of, The
Indian Electricity Act, 1910 (9 of 1910),
71. RIGHTS AND OPTIONS TO PURCHASE UNDER ACT 9 OF 1910 TO VEST
IN BOARD. -[Rep. by The Indian Electricity (Amendment) Act, 1959
(32 of 1959), Sec. 41 (w.e.f. 5th September, 1959).]
72. WATER-POWER CONCESSIONS TO BE GRANTED ONLY TO 1[THE BOARD
OR A GENERATING COMPANY. -The State Government shall not grant
any concession for the, development or use of water-power for
any electrical purpose to any person other than 1[the Board or
a Generating Company], unless the State Government is of opinion
that it is riot expedient for the Board 2[for the Generating Company
so to develop] or use the water-power concerned.
1. Subs by Act 115 of 1976, Sec. 27, for the words “the
board” (w.e.f. 8th October 1976).
2. Subs by sec. 27, ibid, for the words “or that the Board
is unable so to develop” (w.e.f. 8th October 1976).
73. CO-ORDINATION BETWEEN THE BOARD'S SCHEMES AND MULTI PURPOSE
SCHEMES. -Where a multipurpose scheme for the development of any
river in any region is in operation, 1[the Board and the Generating
Company shall co-ordinate their activities with the activities
of the persons responsible for such scheme in so far as they are
inter-related.
1. Subs. by ibid, Sec. 28, for the words “the Board shall
co-ordinate its activities” (w.e.f. 8th October, 1976)
74. POWERS OF ENTRY. – Any 1[Officer or other employee]
2[of the Board or of a generating company] generally or specially
3[authorised by the Board or by the Generating Company, as the
case may be,] in this behalf may at any reasonable time after
giving the owner or occupier reasonable notice enter upon any
land or premises and there do such things as may be reasonably
necessary for the purposes of lawfully using any transmission
lines or main transmission lines or of making any survey, examination
or investigation, preliminary or incidental to the exercise of
powers or the performance of 4[duties by the Board or by the Generating
Company, as the case may be,] under this Act.
1. Subs. by Act 23 of 1978, Sec. 17, for the words “officer
or servant” (w.e.f. 3rd June. 1978).
2. Subs. by Act 115 of 1976, Sec. 29, for the words “servant
of the Board” (w.e.f. 8th October, 1976).
3. Subs. by ibid, Sec 29, for the words “authorised by
the Board” (w.e.f. 8th October, 1976),
4. Subs. by Sec. 29, ibid., for the words “duties by the
Board” (w.e.f. 8th October. 1976).
75. ANNUAL REPORTS, STATISTICS AND RETURNS. –
1[* * * * *] 2[(1)] 3[* * *] The Board shall, as soon as may
be after the end of each financial year, prepare and submit to
the State Government 4[before such date and] in such form as may
be prescribed, a report giving an account of its activities during
the previous financial year and the report shall also give an
account of the activities, if any, which are likely to be undertaken
by the Board in the next financial year; and the State Government
shall cause every such report to be laid before the State Legislature
as soon as may be after it is received by the State Government.]
(2) The Board shall furnish to the State Government at such times
and in such form and manner as may be prescribed or as the State
Government may direct, such statistics and returns and such particulars
in regard to any proposed or existing scheme as the State Government
may from time to time require.
(3) The Board may at any time by notice in writing require any
licensee 5[or person or agency] supplying electricity for public
or private purposes or generating electricity for his use to furnish
it with such information and accounts relating to such supply
or generation and in such form and manner as the notice may specify:
6[Provided that nothing in this sub-section shall be deemed to
empower the Board to require a Generating Company to furnish it
with any information or accounts.]
1. Subs-section (1) omitted by the Act 30 of 1966, Sec. 16 (w.e.f.
16th September, 1966).
2. Sub-section (1-A) re-numbered as sub-section (1) by Act 30
of 1966, Sec. 16 (w.e.f. 16th September, 1966).
3. Certain words, brackets and figure omitted by Sec. 16, ibid.
4. Ins. by Sec. 16, ibid.
5. Subs. by Act I15 of 1976, Sec. 30, for the words “or
person” (w.e.f. 8th October, 1976).
6. Ins. by Sec. 30. ibid. (w.e.f. 8th October 1976).
1[75-A. ANNUAL REPORTS AND ACCOUNTS OF GENERATING COMPANY. –
(l) 2[* * *]
(2) A Generating company shall, as soon as may be after the end
of each year, prepare a report giving an account of its activities
during the previous year and shall, within six months from the
date of closure of the year, forward to the 3[competent] Government,
or where there are more than one 4[competent] Government, to all
such 3[competent] Governments, the report together with a statement
of accounts, in such form and containing such particulars as may
be specified by the 3[competent] Government or the 3[competent]
Governments, as the case may be, a copy of the balance sheet and
profit and loss account and the auditor's report, in relation
to the accounts of the year aforesaid.
5[(3) For the purpose of preparing the statement of accounts
referred to in sub-section (2), the depreciation to be provided
every year shall be calculated at such rate as may be specified
by the Central Government, by notification in the Official Gazette,
in accordance with the provisions of Sec. 43-A.]
6[(3-A) * * * * * *]
(4) The provisions of 7[sub-section] (2) shall be in addition
to and not in derogation of the provisions contained in the Companies
Act, 1956 (1 of 1956), in relation to reports, statement of accounts
and other documents required to be prepared or kept or submitted
by a company within the meaning of Sec. 3 of that Act.]
1. Ins. by Sec. 31, ibid. (w.e.f. 8th October 1976).
2. Omitted by Act 50 of 1991, Sec. 13 (w.e.f. 15th October, 1991).
3. Ins. by Sec. 16, ibid.
4. Subs. by ibid., Sec. 13, for the word “promoting”
(w.e.f. 15th October, 1991).
5. Subs. by ibid., for sub-section (3).
6. Ins by Act 23 of 1978, Sec. 18 (w.e.f. 3rd June. 1978) and
omitted by Act 50 of 1991, Sec. 13 (w.e.f. 15th October, 199 1).
7. Subs. by Act 50 of 199 1, Sec. 13 (w.e.f. 15th October, 199
1).
76. ARBITRATION. –
1[ * * * * ]
(2) Where any question or matter is, by this Act, required to
be referred, to arbitration, it shall be so referred-
(a) In cases where the Act so provides, to the Authority and
on such reference the Authority shall be deemed to have been duly
appointed as Arbitrators, and the award of the Authority shall
be final and conclusive: or
(b) In other cases, to two Arbitrators, one to be appointed by
each party to the dispute.
(3) Subject to the provisions of this section, the provisions
of the 2[Arbitration and Conciliation Act, 1996 (26 of 1996)]
shall apply to arbitrations under this Act.
3[(3-A) Where any question or matter is referred to the Authority
for arbitration under this section, the Authority may, having
regard to the circumstances of each case, charge such arbitration
fee as it may deem reasonable.]
(3-B) All fees and charges due to the Authority in respect of
any arbitration and award and all costs and charges for filing
the award incurred by the Authority may, if they are not paid
by the person from whom they are due within a period of one month
from the date of a notice given to him by the Authority in this
behalf, be recovered from him in the same manner as an arrear
of land revenue.]
(4) The Arbitrators shall in making their award have regard to
the provisions of this Act and any rules and regulations made
there under relevant to the reference.
(5) The Arbitrators may, if they think it expedient so to do,
call in the aid of one or more qualified assessors and hear the
reference wholly or partially with the aid of such assessors.
(6) The provisions of sub-sections (4) and (5) shall apply to
the umpire, if he enters on the reference, as they apply to Arbitrators.
1. Sub-section (1) omitted by Act 30 of 1966, Sec. 17 (w.e.f.
16th September, 1966).
2. Subs by The Act no. 22 of 1998, Sec. 12, dated 10th August,
1998, For the words and figures “ARBITRATION ACT, 1940 (10
of 1940)”.
3. Subs. by Sec. 12, IBID., dated 10th August, 1998, for Sub-Section
(3-A).
1[77. PENALTIES.-If any licensee or other person, not being the
Board, fails without reasonable excuse to comply with, or give
effect to, any direction, order or requirement made under any
of the following provisions, namely:
(a) Sec. 4; or
(b) Sec. 55; or
(c) Cl. (d) of sub-section (1) or Sec. 57-A; or
(d) Sec. 57-B; or
(e) Sec. 58; or
(f) Sub-section (3) of Sec. 75;
He shall be punishable with fine, which may extend to five hundred
rupees, and in the case of a continuing offence with a further
fine which may extend to fifty rupees for each day after the first
during which the offence continues.
1. Subs. by Act IO 1 of 1956, Sec. 21, for Sec. 77 (w.e.f. 30th
December, 1956).
77-A. SOURCE FROM WHICH FINES MAY BE PAID. -All fines payable
by a licensee under this Act or under any other law for the time
being in force in respect of any offence committed by the licensee,
shall be payable by him from that part of the clear profit to
which he is entitled under the Sixth Schedule.
77-B. OFFENCES BY COMPANIES. -
(1) If the person committing an offence under this Act is a company,
every person who at the time the offence was committed was in
charge of and was responsible to, the company for the conduct
of the business of the company as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly:
Provided that nothing contained in the sub-section shall render
any such person liable to any punishment, if he proves that the
offence was committed without his knowledge or that he exercised
all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where
an offence under this Act has been committed with the consent
or connivance of, or is attributable to any neglect on the part
of, any director or manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall
also be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly.
EXPLANATION. -For the purpose of this section,-
(a) “Company” means any body corporate and includes
a firm or other association of individuals; or
(b) “Director” in relation to a firm means a partner
in the firm.
77-C. COGNIZANCE OF OFFENCES. -No Court shall take cognizance
of an offence under Sec. 77, except on the complaint of,--
(a) In the case of an offence relating to Sec. 4, by an officer
of the Authority authorised in that behalf by the Authority;
(b) In the case of any other offence,-
(i) Where a Board is constituted by an officer of the Board authorized
by the Board in that behalf-,
(ii) Where no Board is constituted by an officer of the State
Government authorized by the State Government in that behalf.
78. POWER TO MAKE RULES. -
(1) The State Government may, after previous publication, by
notification in the Official Gazette, make rules to give effect
to the provisions of this Act.
(2) In particular, and without prejudice to the generality of
the foregoing power, such rules may provide for,-
1[(a) 2[The powers of the Chairman and the term of the office]
of the Chairman and other members of the Board, the conditions
under which they shall be eligible for re-appointment and their
remuneration, allowances and other conditions of service;]
(b) The terms and conditions of appointment of members of 3[State
Electricity Consultative Councils] and Local Advisory Committees,
the convening of meetings of such Councils and Committees, and
the conduct of business thereat;
(c) The form in which the annual financial statement and supplementary
statements under Sec. 61 shall be prepared by the Board, and the
particulars to be included therein;
(d) The conditions subject to which the Board may borrow under
Sec. 65;
(e) The manner in which stock issued by the Board shall be issued,
transferred, dealt with and redeemed;
(f) The manner in which the accounts of the Board shall be published
under Sec. 69;
(g) The form in which and the date by which the annual report
of the Board shall be submitted under Sec. 75, and the form and
manner of furnishing statistics and returns by the Board under
that section;
(h) The business of the Board upon which the local Advisory Committees
concerned shall be consulted.
1. Subs. by Act 57 of 1949, Sec. 6, for the original Cl. (a).
2. Subs. by Act 101 of 1956, Sec. 22, for the words “the
term of office” (w.e.f. 30th December, 1956).
3. Subs. by ibid., for “State Electricity Councils”.
STATE AMENDMENT
KARNATAKA.-In Sec. 78 of the principal Act, in sub-section (2),
for Cl. (a) the following clause shall be substituted, namely,
“(a) The term of Office of Chairman and other members of
the Board and the conditions under which they shall be eligible
for reappointments.” 1
1. Vide Knt. Act No. 46 of 1986, Sec. 3.
1[78-A. DIRECTIONS BY THE STATE GOVERNMENT. -
(1) In the discharge of its functions, the Board shall be guided
by such directions on questions of policy as may be given to it
by the State Government.
(2) If any dispute arises between the Board and the State Government
as to whether a question is or is not a question of policy, it
shall be referred to the Authority whose decision thereon shall
be final.]
1. Ins by Act 101 of' 1 956, Sec. 23.
79. POWER TO MAKE REGULATIONS.- 1[The Board may, by notification
in the Official Gazette, make regulations] not inconsistent with
this Act and the rules made there under to provide for all or
any of the following matters, namely:
(a) The administration of the funds and other property of the
Board and the maintenance of its accounts;
(b) Summoning and holding of meetings of the Board, the times
and places at which such meetings shall be held, the conduct of
business there at and the number of members necessary to constitute
a quorum;
(c) The duties of 2[officers and other employees] of the Board,
and their salaries, allowances and other conditions of service;
(d) All matters necessary or expedient for regulating the operation
of the Board under Sec. 20:
(e) The making of advances to licensees by the Board under Sec.
23 and the manner of repayment of such advances;
(f) The making of contributions by the Board under Sec. 24;
(g) The procedure to be followed by the Board in inviting, considering
and accepting tenders;
(h) Principles governing the fixing of Grid Tariffs;
(i) Principles governing the making of arrangements with licensees
under Sec. 47;
(j) Principles governing the supply of electricity by the Board
to persons other than licensees under Sec. 49;
3[(jj) Expending sum not included in statement submitted under
sub-section (1) or sub-section (5) of Sec. 61, under sub-section
(2) of Sec. 62; ]
(k) Any other matter arising out of the Board's functions under
this Act for which it is necessary or expedient to make regulations:
Provided that regulations under Cls. (a), 4[(d) and (ii)] shall
be made only with the previous approval of the State Government
and regulations under Cls. (h) and (i) shall be made with the
concurrence of the authority.
1. Subs. by Act 20 of 1983, Sec. 2 and the Schedule, for the
words “The Board may make regulations” (w.e.f. 15th
March 1984).
2. Subs. by Act 23 of 1978, Sec. 19, for the words “officers
and servants” (w.e.f 3rd June. 1978).
3. Ins. by ibid. (w.e.f. 3rd June, 1978).
4. Subs. by ibid. for the word and letter “and (d)”.
STATE AMENDMENT
UTTAR PRADESH.- In Sec. 79 of the Principal Act, after the existing
proviso, the following proviso shall be inserted, namely: -
“Provided further that the regulations made under Cl. (c)
in regard to conditions of services of officers and servants of
the Board-
(i) May be made with retrospective effect;
(ii) May in relation to officers and servants who were originally
employed under the State Government, and after their resignation
were absorbed in the service of the Board in pursuance of State
Government Order No. 3670-E [71- XXIII-PB, dated 1st July, 1971,
provide that the Board may initiate or recommence any disciplinary
proceedings in respect of their acts and omissions during the
period when they were employed under the State Government except
in cases where disciplinary proceedings were finally concluded
on merits while they were so employed under the Government;
(iii) Shall, in relation to such servants of the Board as are
workmen employed in any industrial establishment under the control
of the Board, have effect notwithstanding anything contained in
any other law for the time being in force”. 1
1. Vide U.P Act No. 12 1983, Sec.8.
1[79-A. LAYING OF NOTIFICATION BEFORE THE STATE LEGISLATURE.
-Every notification issued under Sec. 55 by the State Government,
or the State Commission, as the case may be, every rule made by
that Government under Sec. 78 and every regulation made by the
Board under Sec. 79 shall be laid, as soon as may be, before the
State Legislature.]
1. Subs. by Act 22 of 1998, Sec. 13, dated 10th August, 1998.
80. PROVISION RELATING TO INCOME TAX AND SUPER-TAX. -
(l) For the purposes of the Indian Income-tax Act, 1922 (XI of
1922),4 the Board shall be deemed to be a company within the meaning
of that Act and shall be liable to income-tax and super-tax accordingly
on its income, profits and gains.
(2) The State Government shall not be entitled to any refund
of any such taxes paid by the Board.
81. 1[MEMBERS, OFFICERS AND OTHER EMPLOYEES] OF THE BOARD TO
BE PUBLIC SERVANTS. -All 1[members, officers and other employees]
of the Board shall be deemed, when acting or purporting to act
in pursuance of any of the provisions of this Act to be public
servants within the meaning of Sec. 21 of the Indian Penal Code
(XLV of 1860).
1. Subs. Act 23 of 1978, Sec. 20, for the words “members,
officers and servants” (w.e.f. 3rd June, 1978.
82. PROTECTION TO PERSONS ACTING UNDER THIS ACT. -No suit, prosecution
or other legal proceeding shall lie against 1[and 2[member or
officer other employee] of Board] for anything which is in good
faith done or intended to be done under this Act.
1. Subs. by Act 30 of 1966, for “any person” (w.e.f.
30th December, 1956).
2. Subs. Act 23 of 1978, Sec. 20, for the words “members,
officers and servants” (w.e.f. 3rd June, 1978.
STATE AMENDMENT
UTTAR PRADESH: INSERTION OF NEW SEC. 82-A. -After Sec. 82 of
the principal Act, the following section shall be inserted, namely:
“82-A. Mode of proof of documents of the Board.-
(I) A copy of an entry in any register, or of any receipt, application,
plan, notice, order or other document in the possession of the
Board, shall, if duly certified by an officer authorised in this
behalf, be received as prima facie evidence of entry or document
and be admitted as evidence of the matter or transaction therein
recorded in every case where, and to the same extent as, the original
entry or document would, if produced, have been admissible to
prove such matters.
(2) No member, officer or servant of the Board shall, in any
legal proceeding to which the Board is not a party, be required
to produce any register or document, the contents of which can
be proved under sub-section (1) by a certified copy or to appear
as a witness to prove the matter or transaction recorded therein
unless the Court, for reasons to be recorded, considers it necessary
to make such an order.”1
1. Vide Electricity Laws (Utter Pradesh Amendment) Act, 1974
(36 of 1974), Sec. 8, published in the U.P. Gazette, Extraordinary,
dated 19th December, 1974.
83. SAVING OF APPLICATION OF ACT.-Nothing in this Act shall be
deemed to apply to a licensee on whom a notice under Sec. 5 or
Sec. 7 of The Indian Electricity Act, 191 0 (IX of 19 1 0), has
been served prior to the coming into force of the sections, schedule
and table mentioned in sub-section (3) of Sec. 1.
THE FIRST SCHEDULE
(See Secs. 34 and 36)
ARRANGEMENTS IN RESPECT OF CONTROLLED STATIONS
PART I
Assumption of Control
1. (1) The Board shall, by notice in writing to the licensee,
fix a date (hereinafter in this Schedule referred to as the date
of control), being the first day of a year of account of the licensee,
and from such date the licensee shall, except where prevented
by causes beyond his control, be under obligation-
(a) Subject to such directions as the Board may from time to
time give him, to keep the station at all times in good and substantial
repair and condition and ready for use, together with adequate
staff for operating, maintaining and controlling the station,
and not to make any substantial alterations or renewals in, or
remove any essential or substantial part of, the station without
the consent in writing of the Board;
(b) To operate the station so as to generate such quantity of
electricity with such units of plant at such rates of output and
at such times, or to cease to generate electricity during such
periods as the Board may direct;
(c) To carry out as soon as may be practicable such reasonable
extensions, alterations or renewals of the station or any part
thereof as the Board may from time to time direct;
(d) To supply to the Board all the electricity generated at the
station.
(2) To enable a licensee to comply with any direction under sub-paragraph
(1) requiring extension of the station or any part thereof for
purposes of the Board, the Board may, if it considers it expedient
and practicable so to do, offer to advance to him a loan upon
such terms and conditions as it may deem proper and the licensee
1[may accept the loan from the Board on the terms and conditions
offered or may raise a loan from other sources or employ his own
funds for the purpose of such extension]:
Provided that notwithstanding anything contained in any law or
in any mortgage, charge or instrument executed by the licensee,
the loan so advanced by the Board and the interest thereon shall
be a first charge on the extension and subject to any prior encumbrance
shall also be charged on the undertaking and all the revenues
of the licensee and no such loan shall be amortised in any way
by the licensee:
Provided further that if at the date of purchase of the station
under this Act or of the licensee's undertaking under The Indian
Electricity Act, 1910 (IX of 1910), the said principal or any
part thereof remains unpaid though due for redemption or is not
on that date due for redemption, then any sum payable by the purchaser
as a percentage on account of compulsory purchase under this Act
or the said Act shall be reduced by an amount which bears the
same proportion to that sum as the amount of the said principal
or part thereof remaining unpaid or not being due for redemption
as aforesaid bears to the total of the ordinary, preference and
debenture capital of the licensee and the loans advanced by the
Board under this sub-paragraph.
Explanation.-In this sub-paragraph, the expressions “ordinary
capital”, .'preference capital” and “debenture
capital” have the meanings, respectively assigned to them
in the Sixth Schedule.
II. From the date of control the Board shall, except where prevented
by causes beyond its control, be under obligation to supply to
the licensee, and the licensee shall be under obligation to take
from the board, the whole of the electricity required by the licensee
for purposes of his undertaking, except such quantity of electricity
as the licensee may for the time being be entitled under para
III to purchase from a source other than the Board or as he may
be generating in another station, not being a controlled station.
111. Unless otherwise agreed between the Board and the licensee,
the licensee shall not, where he has received a notice under para.
1, purchase after the date of control any quantity of electricity
from a source other than the Board:
Provided that where on the date of the receipt of such notice
the licensee is bound under any contract to purchase any quantity
of electricity from some other source, he may, for a period not
exceeding two years after the date of control or for such further
period, if any, as the Board may allow, continue to purchase electricity
under the said contract from such other source.
IV. The Board shall pay to the licensee, whether or not any electricity
is generated at the station, the costs ascertained in accordance
with the provisions of the Eighth Schedule.
V. The price to be paid by the licensee for electricity supplied
by the Board shall be determined in the manner provided in the
appropriate Part of this Schedule.
VI. The points at which electricity to be supplied under this
Schedule shall be delivered by the Board and the licensee respectively
shall, unless otherwise agreed between the Board and the licensee,
be at the generating station, and the pressure of the supplies
shall be such as the Board and the licensee may agree.
VII. Where any licensee owns more than one controlled station,-
(a) Such of the several controlled stations as are inter-connected
shall, for the purposes of this Schedule, be deemed to comprise
a single controlled station, and, unless the subject or context
otherwise requires, the provisions of this Schedule shall be construed
as if the word “combined” had been inserted before
the word “station” or the words “generating
station” wherever they occur ;
(b) The electricity supplied at the several controlled stations
by the licensee to the Board, or by the Board to the licensee,
shall each respectively be treated as single supplies ;
(c) In the application of Cl. (a) of para. XII, the costs of
production at each of the several controlled stations shall be
separately ascertained, and in application of Cl. (c) of the said
paragraph-
(i) The sum ascertained in accordance with Cl. (a) of para. I
of the Eighth Schedule in respect of each of the several controlled
stations shall be separately allocated between fixed costs and
running costs, and
(ii) The sum of the several fixed costs and the sum of the several
running costs shall be the fixed costs and the running costs respectively
of the combined station:
(d) In directing the operation of the combined station under
Cl. (b) of sub-paragraph (1) of para. 1, the Board shall have
regard to the nature and capacity of the licensee's transmission
system inter-connecting the several controlled stations and to
the requirements of the licensee at each of those stations.
VIII. In the event of the licensee failing, except where prevented
by causes beyond his control, to perform or continue to perform
any obligation imposed upon him under this part, the Board may
give notice to him in writing that on the first day of the licensee's
next succeeding year of account, the generating station will be
purchased by the Board and on such day the Board shall purchase
the station at a price determined in accordance with the Fourth
Schedule; and thereafter-
(a) All the provisions of this Schedule except para. II and this
paragraph shall, in relation to the licensee, cease to have effect;
(b) The Board shall supply the licensee with the electricity
required by him under para. 11 at such price and on such conditions
as the Board may determine.
1. Subs. by Act 101 of 1956, sec. 24 for certain words (w.e.f.
30th December, 1956).
PART II
Price to be paid for electricity supplied by the Board under
Part I
IX. There shall be agreed between the Board and the licensee
in respect of each month of the licensee's year of account-
(a) The maximum capacity of the station, that is to say, the
maximum capacity (expressed in kilowatts available for supply
to feeders) of such plant and works appertaining to the generation
of electricity at the station as where available for reliable
and regular commercial operation on the first day of the month,
including the capacity of such plant and works as were temporarily
out of commission;
(b) The number and size of units of plant works, forming part
of the aforesaid plant and works, which ought properly to be deemed
to be stand-by if the station were not a controlled station;
(c) The stand-by capacity of the station, that is to say, the
number of kilowatts (expressed in kilowatts available for supply
feeders) by which the maximum capacity of the station would be
reduced if the stand-by plant and works referred to in Cl. (b)
were to be left out of account;
(d) The actual effective capacity of the station, that is to
say, the number of kilowatts by which the maximum capacity exceeds
the stand-by capacity.
X. (1) The licensee shall be entitled to purchase from the station
in each month at a prize determined under para. XIII a number
of kilowatts not exceeding the scheduled effective capacity of
the station on the first day of that month as determined in sub-para.
(2).
(2) The scheduled effective capacity of the station shall be
agreed between the Board and the licensee in respect of each month
of the year of account, and shall be computed in the same manner
as the actual effective capacity under para. IX, except that there
shall be left out of account such units of plant and works, if
any, forming part of the plant and works referred to in Cl. (a)
of the said paragraph, as the licensee declares to be surplus
to his requirements for the time being:
Provided that the licensee shall not declare to be surplus to
his requirements any such units of plant or works as were installed
or were an order at the date of control or which were included
in any previous computation of the scheduled effective capacity:
Provided further that if as a result of the licensee declaring
as surplus to his requirement any units of plant or works, the
scheduled effective capacity is in respect of any month computed
to be less than the maximum demand of the licensee on the station
for the purposes of his own undertaking, then such units of plant
or works and all further additional units of plant or works shall
thereafter always be deemed to be surplus to the requirements
of the licensee as aforesaid unless the Board decides otherwise.
XI. Of the kilowatt-hours purchased by the licensee from the
Board in each month, a number of kilowatt-hours not exceeding
the number which bears the same proportion to the total number
purchased as the scheduled effective capacity for the month bears
to the maximum demand of the licensee on the Board in that month
shall be purchased at a price determined under para. XIII ; the
balance being purchased at a price determined under para. XIV:
Provided that if the station is a hydro-electric station or if
any unit of a combined station is a hydroelectric unit, the number
of kilowatt-hours which the licensee shall be entitled to purchase
as aforesaid shall be reduced by such amount, if any, as may be
agreed between the Board and the licensee, having regard to the
number of 'kilowatt-hours actually supplied in the month from
such hydroelectric station or unit.
XII. As soon as practicable after the end of a year of account-
(a) There shall be ascertained in respect of that year the cost
of production at the station in accordance with the provisions
of the Eighth Schedule:
(b) There shall be deducted from the total sum ascertained, in
respect of the year under Cls. (b), (c), ((I). (e) and (f) of
para. I of the Eighth Schedule, such proportion of the charges
referred to in the said clauses as are wholly attributable to
so much of the plant and works, if any, as has been declared by
the licensee under Sub-paragraph (2) of para. X to be surplus
to his requirements, and the balance remaining after such deduction
shall, for the purposes of this schedule. be referred to as the
schedule overhead charges:
Provided that in assessing the said proportion, regard shall
be had to the period during which any such plant or works were
declared to be surplus as aforesaid;
(c) There shall be allocated between fixed costs and running
costs in accordance with the provisions of the Ninth Schedule,
the sum ascertained in respect of' that year under Cl. (a) of
para. I of the Eighth Schedule, and the amount of- running costs
divided by the number of kilowatt-hours supplied from the station
in that year shall for the purposes of the Schedule, be referred
to as the running charges component:
(d) There shall be ascertained in respect of that year an amount
(in this Schedule referred to as the scheduled fixed works costs)
calculated from the expression, A
“A + A X B” where--
2 2 C
A = the amount of fixed cost ascertained in respect of that year
under Cl. (c);
B = the sum of the scheduled effective capacities for each month
of that year;
C = the sum of the actual effective capacities for each month
of that year.
XIII. The licensee shall pay to the Board in respect of each
month of the year amount for the electricity purchased under paras.
X and XI, -
(a) In respect of kilowatts, an amount equal to one-twelfth of
the sum of the scheduled
over-head charges and the scheduled fixed works costs,
(b) In respect of kilowatt-hours, a sum found by multiplying
the number of kilowatt-hours supplied by the running charges component:
Provided that if in any year of account the station for any reason
ceases to generate electricity for one thousand hours or more,
then for the purposes of ascertaining the running charges component
and the scheduled fixed works costs under Cls, (c) and (d), respectively
of para. XII-
(i) The said Cl. (c) shall be construed as if there were substituted
for the words “that year-” in both places where they
occur, the words “the most recent year of account in which
the station did not cease to generate electricity for one thousand
hours or more” and as if to the said clause the following
proviso were added, namely:
“Provided that so much of the said sum as is represented
by the cost of fuel shall be adjusted to take account of the cost
which would have been incurred had that fuel been consumed at
the average prices prevailing in the actual year of account.”;
(ii) In evaluating the expression contained in the said Cl. (d),
the letter C shall be deemed to be equal to the sum of actual
effective capacities for each month of the recent year of account
in which the station did not cease to generate electricity for
one thousand hours or more:
Provided further that if in any year of account there exist in
the station any units of plant or works which have been declared
by the licensee under sub- paragraph (2) of para. X to be surplus
to his requirements in that year, there shall be added to the
running charges component in respect of that year the amount,
if any, by which that part of the said component attributable
to the cost of fuel is less than ninety per centum of the corresponding
part of the running charges component in respect of the year of
account immediately preceding that in which the earliest installed
capacity of the said units of plant or works first came into commercial
operation in the station and in ascertaining the corresponding
part as aforesaid, the fuel consumed shall be deemed to be of
the same average quantity and to be consumed at the same average
cost per ton as the fuel consumed in the year of account:
Provided further that if in respect of any month of the year
of account any units of plant or works previously declared by
the licensee as aforesaid to be surplus to his requirements are
for the first time taken into account in assessing the scheduled
effective capacity for that month, then in addition to the payment
referred to in Cl. (a) the licensee shall pay to the Board a sum
equal to any sums previously paid by the Board to the licensee
on revenue account (in respect of any period prior to the date
on which the said units of plant or works came into commission)
by way of interest depreciation testing and turning-up expenses
attributable to the said units of plant or works; and the sum
to be paid as aforesaid shall become due in one or more installments
and at such time or times as the Board may direct.
XIV. The price payable by the licensee to the Board for all electricity
supplied by the Board to him in excess of quantities referred
to in paras. X and XI and shall be the Grid Tariff.
XV. The licensee shall have the right at any time, on giving
to the Board prior notice in writing expiring at the end of any
year of account, to purchase from the Board at the Grid Tariff
the whole of the electricity supplied to him by the Board thereafter:-
Provided that the Board in those circumstances may make it a
condition that the licensee shall, until the date on which the
scheduled effective capacity of the station becomes nil, pay to
the Board in respect of each month in addition to the Grid Tariff
one-twelfth of such proportion as the Board may fix of the annual
charges by way of interest and depreciation which would have been
payable to the Board in respect of the year of account had the
said notice not been given:-
Provided further that in assessing the scheduled effective capacity
for the purposes of the first proviso all units of plant or works
which may have been under this Schedule declared or deemed to
be surplus to the requirements of the licensee at the date of
expiration of the said notice and all additional units of plant
or works shall after that date always be deemed to be surplus
to the requirements of the licensee:-
Provided further that after the expiration of the said notice
the licensee shall not be entitled any time to purchase electricity
from the Board at the price ascertained under Para. XIII.
PART III
Permanent closing down of a controlled station
XVI. The Board may give the licensee not less than six months
notice in writing expiring at the end of any year of account that
from that first day of the next succeeding year of account it
will not again direct the licensee to generate any electricity
in the station, and upon that date (hereinafter in this Schedule
referred to as the date of closing down) the station shall be
permanently closed down.
XVII. From the date of closing down paras. 1, IV and VIII shall,
be in relation to the station, cease to have effect, and on receipt
of the notice under para. XVI the licensee shall have the option
(to be exercised by a date not later than three months prior to
the date of closing down) either-
(a) (i) To sell the station at any time after date of closing
down, and
(ii) To purchase the electricity supplied to him by the Board
at the Grid Tariff, or
(b) (i) To require the Board to purchase the station or at the
option of the licensee the undertaking of the licensee at the
date of closing down at a price determined under the Fourth Schedule,
and
(ii) To purchase the electricity supplied to him by the Board
in accordance with the provisions of Part 11 as modified by para.
XVIII:
Provided that where the station cannot be served from the distributing
system of the licensee or where the severance of the station from
the distributing system of the licensee is likely to affect prejudicially
the interests of the licensee, the licensee shall be entitled
to demand that the Board shall purchase his entire undertaking
and on such demand being made the Board shall purchase the entire
undertaking of the licensee.
Any question arising under the proviso to this paragraph shall
be referred to the arbitration under Sec. 76.
XVIII. Where a licensee exercises his option under para. XVII
in terms of Cl. (b) thereof, the Board shall comply with the requirement
to purchase the station under the sub-clause (i) of that clause,
and in applying the provisions of Part II to the purchase by the
licensee of electricity supplied to him by the Board,-
(a) The station shall, notwithstanding that it has been permanently
closed down, be deemed to remain a controlled station in operation
but to be such a station which has ceased to generate electricity
for one thousand hours or more during each year of account;
(b) Cl. (a) of para. IX shall be construed as if the following
were substituted thereof, namely:
“(a) The maximum capacity of the station, that is to say,
the maximum capacity (expressed in kilowatts available for supply
to feeders) of such plant and works appertaining to the generation
of electricity at the date of closing down as would have been
available for reliable and regular commercial operation on the
first day of each month, had the station not been closed down
under Part III and had no replacement of any major item of such
plant or works been carried out;”
(c) Cl. (a) of para. XII shall be construed as if the following
were substituted thereof, namely:
“(a) There shall be ascertained in respect of the year
of account such annual charges by way of interest and depreciation
attributable to the assets purchased by the Board under Part III
as would have resulted from the application of Cls. (e) and (f)of
Para. I of the Eighth Schedule had those assets remained in the
ownership of the licensee:”:
(d) Cls. (b) of Para. XII shall be construed as if the reference
therein to Cls. (b) (c) and (d) of para. 1. of the Eighth Schedule
were omitted;
(e) There shall be added to the sum payable by the licensee to
the Board under Cl. (a) of Para. XIII in each month of 'the year
of account a sum equal to one-twelfth of the amount calculated
from the expression,-
“A*B, where
C”
A = that part of the scheduled overhead charges payable by the
licensee to the Board in respect of the most recent year of account
during which the station did not cease to generate electricity
for one thousand hours or more, which relates to the items referred
to in Cls. (b), (c) and (d) of para. I of the Eighth Schedule;
B = the Sum of- the scheduled effective capacities for each
month of the year of account;
C = the sum of 'the scheduled effective capacities for each
month of the most recent year of account as aforesaid.
PART IV
Purchase by Board of controlled station not to be closed down
XIX. Where in respect of any month notified by the Board (and
hereinafter in this Schedule referred to as the relevant month),
the scheduled effective capacity of the station is computed under
para. X to be less than one-half of the actual effective capacity
of the station, the Board may give to the licensee six months'
notice in writing that on the first day of the year of the account
next following the date of expiration of such notice the station
will be purchased by the Board.
XX. Notwithstanding anything contained in para. X, in computing
the scheduled effective capacity for purposes of para. XIX there
shall be left out of account all such units of plant and works
as would not reasonably have been required by the licensee for
purposes other than supply to the Board had the station not been
a controlled station.
XXI. Where a notice under para. XIX has been served by the Board
on the licensee, the Board shall purchase the station or where
a severance of the station from the distributing system of the
licensee is not possible or is likely to affect prejudicially
the interest of the licensee and the licensee so requires the
entire undertaking of the licensee at the date specified in the
notice and at a price determined under the Fourth Schedule.
XXII. From the date of purchase of the station or at the option
of the licensee the undertaking of the licensee under para. XXI
the provisions of paras.I, IV and VIII shall, in relation to the
station, cease to have effect, and the licensee shall be required
to purchase the electricity supplied to him by the Board in accordance
with the provisions of Part II as modified by para. XXIII.
XXIII. In applying the provisions of Part II of the purchase
by a licensee whose station has been purchased under this Part
of electricity supplied to him by the Board,-
(a) The station shall, notwithstanding that it has been purchased
by the Board, be deemed to remain a controlled station;
(b) Cl. (a) of para. XII shall be construed as if the reference
therein to the provisions of Eighth Schedule excluded a reference
to Cls. (b), (c) and (d) of para. I of that Schedule, and as if
the following proviso were added to the said Cl. (a), namely:-
“Provided that the annual charges to be included in accordance
with Cls. (e) and (f) of para. I of the said Schedule shall be
such as would have resulted had the assets purchased by the Board
under Part IV remained in the ownership of the licensee,”
(c) Cl. (b) of para. XII shall be construed as if the reference
therein to Cls. (b). (c) and (d) of para. I of the Eighth Schedule
were omitted;
(d) There shall be added to the sum payable by the licensee
to the Board under Cl. (a) of para. XIII in each month of the
year of account a sum equal to one-twelfth of the amount calculated
from the expression,
“A x B Where .
C,
A = That part of the scheduled overhead charges payable by the
licensee to the Board in respect of the last year of account in
which the station was in the ownership of the licensee, which
relates to the items referred to in Cls. (b), (c), and (d) of
para. I of the Eighth Schedule:
B = The sum of scheduled effective capacities for each month
of the year of account;
C = The sum of 'the scheduled effective capacities for each month
of the said last year of account.
THE SECOND SCHEDULE
(See Sec. 35)
Supply by Board to licensees owning stations other than
controlled stations
I. Before the end of each year the Board shall declare to the
licensee in respect of each of the two next succeeding years the
maximum number of kilowatts which it will make available for the
purpose of the licensee's undertaking.
II. Where the Board and the licensee agree that the number of
kilowatts declared under para. I will be inadequate to meet the
requirements of the licensee having regard to the capacity of
the licensee's generating plant, the Board shall not refuse its
consent under Sec. 44, the provisions of that section notwithstanding,
to the installation by the licensee of such generating plant as
he may reasonably require for the purposes of his undertaking,
unless the Board is able appropriately to amend its declaration
within a reasonable time.
III. The licensee shall be entitled to demand from the Board,
and the Board shall, except where prevented by causes beyond its
control, be under obligation to supply to the licensee, a maximum
number of kilowatts in each year not exceeding, without the consent
of the Board, the maximum number of kilowatts declared under this
Schedule in respect of that year.
IV. The point at which the electricity to be supplied under
this Schedule shall be delivered to the licensee shall, unless
otherwise agreed between the Board and the licensee, be at the
licensee's generating station, and the pressure of supply shall
be such as may be agreed between the Board and the licensee.
V. The Board shall bear the whole of the cost of the service
apparatus required for making the supply under this Schedule available
to the licensee.
VI. The price to be paid by the licensee to the Board in respect
of each year for electricity supplied under this Schedule shall
be the Grid Tariff.
THE THIRD SCHEDULE
(See Sec. 36)
Closing down of generating stations other than
controlled stations
1. Where the Board proposes under Sec. 36 permanently to close
down a generating station other than a controlled station, it
shall give the licensee owning the station not less than six months'
notice in writing expiring at the end of any year of account that
from the first day of next succeeding year account (hereafter
in this Schedule referred to as the date of closing down) the
station be permanently closed down.
II. From the date of closing down the Board shall be under obligation
to supply the licensee, except where prevented by causes beyond
its control, and the licensee shall be under the obligation to
take from the Board, the whole of the electricity required by
the licensee for the purposes of his undertaking, except such
quantity of electricity as the licensee may for the time being
be entitled under para. III to purchase from a source other than
Board or as he may be generating in another station, not being
a controlled station.
III. Unless otherwise agreed between the Board and the licensee
the licensee, shall not, where he has received a notice under
para. I purchase after the date of closing down any quantity of
the electricity from a source other than the Board:
Provided that where on the date of receipt of such notice the
licensee is bound under any contract to purchase any/quantity
of electricity from some other source, he may, for a period not
exceeding two years after the date of closing down or for such
further period, if any, as the Board may allow, continue to purchase
electricity under the said contract from such other source.
IV. (1) The point at which electricity to be supplied by the
Board shall be delivered to the licensee shall, unless otherwise
agreed between the Board and the licensee, be at the licensee's
generating station, and the pressure of supply shall be such as
may be agreed between the Board and the licensee.
(2) The Board shall bear the whole of the cost of the service
apparatus required for making the supply available to the licensee.
V. The licensee shall have the option, to be exercised by a date
not later than three months prior to the date of closing down,
either,-
(a) (i)To sell the station at any time after the date of closing
down, and
(ii)To purchase the whole of the electricity supplied to him
by the Board at the Grid Tariff, or
(a) (i)To require the Board to purchase the station 1[or the
entire undertaking at the date of closing down at a price determined
under the Fourth Schedule, and
(ii)To purchase the whole of the electricity supplied to him
by the Board on the terms hereafter setout in this schedule.
VI. Where a licensee exercises his option under para. V in terms
of Cl. (b) thereof, the Board shall comply with the requirement
to purchase under sub-clause (i) of that clause, and the following
provisions of this Schedule shall apply.
VII. As soon as practicable after the licensee has exercised
his option as aforesaid, there shall be ascertained and agreed
between him and Board the following quantities in respect of each
year of account subsequent to the date of closing down, namely:
(a) The maximum capacity of the station, that is to say, the
maximum capacity (expressed in kilowatts available for supply
to feeders) of such plant and works appertaining to the generation
of electricity at the date of closing down as would have been
available for reliable and regular commercial operation on the
first day of the year of account, had the station not been closed
down under this Schedule and had no replacement of any major item
of such plant or works been carried out subsequent to the date
of closing down.
(b) The number and size of units of plant and works, forming
part of the aforesaid plant and works, which would have represented
reasonable stand by in the section.
(c ) The standby capacity of the station, that is to say, the
number of kilowatts (expressed in kilowatts available for supply
to feeders) by which the maximum capacity of the station would
be reduced if the standby plant and works referred to Cl. (b)
were to be left out of account.
(d) The agreed effective capacity of the station, that is to
say, number of kilowatts by
which the maximum capacity exceeds the standby capacity.
VIII. As soon as practicable after the date of closing down there
shall be ascertained in agreement between the Board and the licensee
in respect of each of the three consecutive years of account immediately
preceding the date of closing down (hereafter in this Schedule
referred to as the basic years)-
(a) The sums expended by the licensee and wholly attributable
to the generation of electricity under the following heads, namely:
(i) Fuel;
(ii) Oil, water and stores consumed;
(iii) Salaries and wages and any contribution by the licensee
for pensions, provident fund, superannuation and insurance of
officers and servants;
(iv) Repairs and maintenance, and renewals not chargeable to
capital account;
(v) Management, rents, rates and taxes (including super-tax payable
by the licensee as a company, but excluding other taxes on profits),
insurance of plant and general establishment charges:
(vi) Any other expense on revenue account;
(b) The actual effective capacity of the station on the first
day of each such year agreed in accordance with the principles
set out in para, IX of the First Schedule.
IX. As soon as practicable after the beginning of each year of
account there shall be ascertained in respect of that year such
annual charges by way of interest and depreciation attributable
to the assets purchased by the Board under this Schedule as Would
hive resulted from the application of Cls. (e) and (f) of para.
I of the Eighth Schedule, had those assets remained in the ownership
of the licensee.
X. The licensee shall be entitled to purchase from the Board
in each year of account at a price determined under para XI-
(a) A number of kilowatts not exceeding the agreed effective
capacity ascertained in respect of that year under para. VII,
and
(b) A number of kilowatt-hours not exceeding the number of kilowatt-hours
which bears the same proportion to the total number of kilowatt-hours
required by the licensee in that year for the purposes of his
undertaking as the agreed effective capacity ascertained in respect
of that year bears to the total maximum demand of the licensee
in that year for the said purposes.
XI. The price payable by the licensee in respect of each year
of account for the quantity of electricity specified in para.
X shall be-
(a) In respect of kilowatts, a fixed charge equal to the sum
of-
(i) An amount calculated from the expression “A +A*B”
2 2 C
(ii) An amount calculated from the expression “ B x D,,
C
(ii) The annual charges by way of interest and depreciation ascertained
in respect of the year of account under para. IX, where
A= One-third of the total costs during the basic years under
heads (ii), (iii), (iv) and (vi)
set out in Cl. (a) of para. VIII ;
B= The agreed effective capacity for the year of account;
C= One-third of the sum of the actual effective capacities [ascertained
under Cl. (b) of para. VIII ]for each of the basic years;
D=One-third of the total costs during the basic years under head
(v) set out in Cl. (a) of para. VIII ;
(b) In respect of kilowatt-hours, a running charge per kilowatt-hour
ascertained -
(i) By multiplying the total number of tons of fuel consumed
in the station in the basic years by the estimate agreed between
the Board and the licensee of the cost per ton which would have
been incurred in delivering and handling the same quantity of
fuel of equivalent calorific value to the furnaces in the station
during the year of account, had the station remained in the ownership
of the licensee, and
(ii) By dividing the total cost so found by the total number
of units sent out from the station in the basic years.
XII. The price payable by the licensee for all electricity supplied
to him by the Board in excess of the quantity specified in para.
X shall be the Grid Tariff.
XIII. The licensee shall have the right at any time on giving
the Board prior notice in writing expiring at the end of a year
of account of purchase at the Grid Tariff the whole of the electricity
supplied to him by the Board:
Provided that the Board in those circumstances may make it a
condition that the licensee shall, until the date on which agreed
effective capacity of the station becomes nil, pay to the Board
in each year of account in addition to The Grid Tariff a sum equal
to such proportion as the Board may fix of the annual charges
by way of interest and depreciation ascertained in respect of
the year under para. IX:
Provided further that after the expiration of the said notice,
the licensee shall not be entitled at any time to purchase electricity
from the Board at the price ascertained under para. XI.
1. Ins. by Act 101 of 1956, Sec. 25 (w.e.f 30th December, 1956).
THE FOURTH SCHEDULE
(See Secs. 23 and 37 and First and Third Schedules)
Price for Undertakings; Generating Stations
and Main Transmission Lines purchased by the Board
1. For the purposes of this Schedule-
(a) “Date of vesting” means the date on which the
undertaking, generating station, main transmission line or asset
forming part of such station or line, as the case may be, vests
in the Board;
(b) “Original cost.' of an asset means the amount of expenses
certified or determined under para. II to have been properly incurred
on and incidental to the provision of the asset for the purposes
of the undertaking, generating station or main transmission line,
as the case may be.
1[(c) * * * * * * *]
II. The price to be paid for any undertaking, generating station
or main transmission line, as the case may be, purchased by the
Board under this Act shall be such sum as may be certified by
an auditor appointed by the State Government in this behalf to
have been the amount properly incurred on and incidental to the
establishment of the undertaking, station or main transmission
line, as the case may be, less depreciation thereon 2[calculated
in accordance with the provisions of para. VI of the Sixth Schedule]:
Provided that there shall be added to such sum as aforesaid on
account of such purchase of the generating station or main transmission
line such reasonable compensation as may be determined by the
Board having due regard to the fact that a portion of the undertaking
is to be acquired:
Provided further that if the Board or the licensee is dissatisfied
with the sum so certified, the matter shall, in default of agreement
between them, be determined 3[by arbitration] as provided in Sec.
76.
4[III * * * * * * * ]
IV. The auditor appointed under para. II shall be a person qualified
under the provisions of Sec. 144 of the 5[, Indian Companies Act,
1913 (7 of 1913)], to act as an auditor of companies.
V. The auditor's costs under this Schedule shall be shared equally
by the Board and the licensee concerned
1. Clause (c) omitted by Act 23 of 1978, Sec. 22 (w.e.f. 3rd
June, 1978).
2. Subs. by ibid. for certain words (1)Ins. by Act 30 of 1966,
Sec. 19 (w.e.f. 16th September, 1966).
3. Paragraph III omitted by Act 23 of 1978, Sec. 22 (w.e.f.,
3rd June, 1978).
4. Relevant provisions of the Companies Act, 1956 (1 of 1956)
may be referred to.
5. Relevant provisions of the Companies Act, 1956 (1 of 1956)
may be referred to.
THE FIFTH SCHEDULE
(See Sec. 41)
Charges for Use 1[ by Board for Generating Company] of
Transmission Lines and Main Transmission Lines
1 . Subs. by Act I15 of 1976, Sec. 32 for the words “By
Board” (w.e.f. 8th October, 1976.).
I. The following charges and allowances shall be made in respect
of a year of account for the use by 1[the Board or the Generating
Company] of main transmission lines or transmission lines (hereafter
in this Schedule referred to as lines) namely:
(a) The actual cost of maintenance of the lines, including renewals
thereof not chargeable to capital account;
(b) Sums paid in respect of the lines for insurance and as rents,
rates and taxes2 [(including all taxes payable on income and profits)]
-,
(c) The proportion of management and general establishment charges
properly attributable to the lines;
(d) Any other expenses on revenue account properly attributable
to the lines;
(e) 3[Interest on the depreciated cost of the lines shown in
the books, of the undertaking and properly attributable to the
lines (whether defrayed out of capital or revenue and interest
on such working capital as is properly attributable to the lines]:
Provided that for the purpose of ascertaining the principal on
which interest is payable within the meaning of this clause, there
shall be left out of account any part of principal interest on
which is charged to capital;
(f) An allowance for depreciation of an amount determined in
respect of the lines in accordance with the provisions of para.
VI of the sixth Schedule.
II. If the lines are used partly by 1[the Board or the Generating
Company] and partly by the licensee owning them, or if the arrangement
for their use comes into force or determines otherwise than at
the beginning or end of a year of account, the charges and allowances
referred to in Para. I shall be the proper proportion thereof
having regard to the use made of the lines by 1[the Board or the
Generating Company] the period of such use during the year and
with the addition of the cost of such additional transmission
losses as may have been incurred by the licensee as a result of
the Board's user of the lines.
4[III. For the purposes of Cl. (e) of para. I,-
(i) “Depreciated cost of the lines” means original
cost thereof as determined in accordance with the provisions of
sub-paragraph (6) of para. XVII of Sixth Schedule less the amount
written of or set aside on account of depreciation on fixed assets
and the amount written off in respect of intangible assets thereof
in the books of the undertaking before or after the commencement
of this Act;
(ii) The rate of interest shall be,-
(a) Where the licensee owning the lines is a local authority,
the average rate payable on the money raised by that authority
for the purpose of constructing the lines;
(b) In any other case, the Reserve Bank rate ruling at the beginning
of the year referred to in para. I plus two per centum.]
1. Subs. by Sec. 32, ibid., for the words “the Board”
(w.e.f. 8th October, 1976).
2. Subs. by Act I01 of 1956, Sec. 26, for words “(including
super-tax payable by the licensee as a company, but excluding
other taxes on profits)” (w.e.f. 30th December 1956).
3. Subs. by ibid. for certain words
4. Subs. by Act 30 of 1966, Sec. 20, for para III (w.e.f. 1st
April, 1966).
THE SIXTH SCHEDULE
1[(See Secs. 57 and 57-A)
Financial Principles and their Application
1 . Subs. by act 101 of 1956, Sec. 27, for the brackets, words
and figures “See Sec. 57” (w.e.f. 30th December 1956).
I. 1[Notwithstanding anything contained in The Indian Electricity
Act, 1910 (9 of 1910)2 [except sub-section (2) of Sec. 22-A],
and the provisions in the licence of a licensee, the licensee
shall so adjust his 3 [charges] for the sale of electricity whether
by enhancing or reducing them that his clear profit in any year
of account shall not, as far as possible, exceed the amount of
reasonable return:
4[Provided that such 3[charges] shall not be enhanced more than
once in any year of account:
Provided further that the licensee shall not be deemed to have
failed so to adjust his 3[charges] if the clear profit in any
year of account has not exceeded the amount of reasonable return
by 5[twenty] per centum of the amount of reasonable return:
Provided further that the licensee shall not enhance the 3[charges]
for the supply of electricity until after the expiry of a notice
in writing of not less than sixty clear days of his intention
to so enhance the 4[charges], given by him to the State Government
and to the Board:
Provided further that if the 3[charges] of supply fixed in pursuance
of the recommendations of a rating committee constituted under
Sec. 57-A are lower than those notified by the licensee under
and in accordance with the preceding proviso, the licensee shall
refund to the consumers the excess amount recovered by him from
them: ]
6[Provided also that nothing in this Schedule shall be deemed
to prevent a licensee from levying with the previous approval
of the State Government, minimum charges for supply of electricity
for any purpose.]
6[1-A. The notice referred to in the third proviso to para. I
shall be accompanied by such financial and technical data in support
of the proposed enhancement of charges as the State Government
may, by general or special order, specify.]
II. (1) If the clear profit of a licensee in any year of account
is in excess of the amount of reasonable return, one-third of
such excess, not exceeding 7[five per cent.) of the amount of
reasonable return, shall be at the disposal of the undertaking.
Of the balance of the excess, one-half shall be appropriated to
a reserve which shall be called the Tariffs and Dividends Control
Reserve and the remaining half shall either be distributed in
the form of a proportional rebate on the amounts collected from
the sale of electricity and meter rentals or carried forward in
the accounts of the licensee for distribution to the consumers
in future, in such manner as the State Government may direct.
(2) The Tariffs and Dividends Control Reserve shall be available
for disposal by the licensee only to the extent by which the clear
profit is less than the reasonable return in any year of account.
(3) On the purchase of the undertaking under the terms of its
licence any balance remaining in the Tariffs and Dividends Control
Reserve shall be handed over to the purchaser and maintained as
such Tariffs and Dividends Control Reserve:
8[Provided that where the undertaking is purchased by the Board
or the State Government, the amount of the Reserve may be deducted
from the price payable to the licensee.]
9[(4) On the purchase of the undertaking after the expiry, or
on the revocation, of its licence or otherwise, all amounts of
rebate lying undistributed to the consumers on the date of such
purchase shall be handed over to the purchaser who, in turn, shall
enter the same in his books of account, under the heading Consumer's
Rebate Reserve and any amount lying undistributed in that Reserve
shall be carried forward for distribution to the consumer concerned:
-
Provided that the share of money in the Consumers' Rebate Reserve
payable to the consumers who are not traceable or who have ceased
to be consumers in relation to that undertaking, may be utilised
in the development works of the purchaser.]
III. There shall be created from existing reserves or from the
revenues of the undertaking a reserve to be called “Contingencies
Reserve”.
IV. (1) 'The licensee shall appropriate to Contingencies Reserve
from the revenues of each year of account a sum not less than
one-quarter of one per centum and not more than one-half of one
per centum of the original cost of fixed assets, provided that
if the said reserve exceeds, or would by such appropriation, be
caused to exceed, five per centum of the original cost of fixed
assets, no appropriation shall be made which would have the effect
of increasing the reserve beyond the said maximum.
10[(2) The sums appropriated to the Contingencies Reserve shall
be invested in securities authorised under the Indian Trusts Act,
1882 (2 of 1882), and such investment shall be made within a period
of six months of the close of the year of account in which such
appropriation is made.]
V. 11[(1) The Contingencies Reserve shall not be drawn upon during
the currency of the licence except to meet such charges as the
State Government may approve as being--
(a) Expenses or loss of profits arising out of accidents, strikes
or circumstances which the management could not have prevented;
(b) Expenses on replacement or removal of plant or works other
than expenses requisite for normal maintenance or renewal;
(c) Compensation payable under any law for the time being in
force and for which no other provision is made.
10[(2) On the purchase of the undertaking, the Contingencies
Reserve, after deduction of the amounts drawn under sub-paragraph
(1), shall be handed over to the purchaser and maintained as such
Contingencies Reserve:
Provided that where the undertaking is purchased by the Board
or the State Government, the amount of the Reserve computed as
above shall, after further deduction of the amount of compensation,
if any, payable to the employees of the outgoing licensee under
any law for the time being in force, be handed over to the Board
or the State Government, as the case may be.]
1. Subs. by Sec. 27, ibid., for certain words.
2. Ins. by Act 32 of 1959, Sec. 41 (w.e.f. 5th September, 1959.).
3. Subs. by Act 30 of 1966 Sec. 21 for the word “rates”
(w.e.f. 1st April, 1966.).
4. Subs. by Act 101 of 1956, Sec. 27, for the proviso (w.e.f
1st April, 1957).
5. Subs. by Act 30 of 1966, Sec. 21, for the word “fifteen”
(w.e.f. 1st April, 1966).
6. Ins. by Act 30 of 1966, Sec. 21 (w.e.f. 1st April. 1966).
7. Subs. by Act 101 of 1956, Sec. 27, for the figure and words
“7 per cent.” (w.e.f.1st April 1957).
8. Ins. by Act 30 of 1966, Sec. 21 (w.e.f. April, 1966).
9. Ins. by Act 115 of 1976, Sec. 33 (w.e.f. 8th October, 1976).
10. Subs. by Act 30 of 1966, See, 21, for former sub-paragraph
(2) (w.e.f.1st April, 1966).
11. Paragraph V re-numbered as sub-paragraph (l) thereof by act
101 of 1956, Sec. 27 (w.e.f. 1st April, 1957).
STATE AMENDMENT
WEST BENGAL.- In its application to the State of West Bengal,
(a) in Sch. VI, after para. V (1), Sub para. (I -A) inserted as
under-
“(1- A)The licensee may, with the previous approval of
the State Government, take an advance from the Contingency Reserve
during the currency of the licence to meet such charges and on
such terms and conditions as the State Government may determine”.
(b) Sub-paragraph substituted as under -
“(2) On the purchase of the undertaking the following amounts
shall be handed over to the purchaser and maintained as Contingency
Reserve-
(a) The Contingency Reserve after deduction of the amount drawn
under sub-para (1): and
(b) The amount which has not been repaid out of the taken from
the Contingency Reserve under sub-paragraph (I -A), together with
the interest, if any, payable on the advance:
Provided that where the undertaking is purchased by the Board
or the State Government, the amounts referred to in Cls. (a) and
(b) above, shall after deduction of the amount of compensation,
if any, payable to the employees of the Outgoing licensee under
any law for the time being in force, be handed over to the Board
or the State Government, as the case may be”.-W.B. Act,
42 of 1979, Sec. 3 (w.e f. 17th March, 1980).
1[V-A. (1) There shall be created a reserve to be called the
Development Reserve to which shall be appropriated in respect
of each accounting year a sum equal to the amount of income-tax
and super-tax calculated at rates applicable during the assessment
year for which the accounting year of the licensee is the previous
year, on the 2[amount of investment allowance] to which the licensee
is entitled for the accounting year 2[under Sec. 32-A of the Income-tax
Act, 1961 (43 of 1961)]:
Provided that if in any accounting year, the clear profit [excluding
the special appropriation to be made under item (va) of Cl.(c
) of sub-paragraph (2) of para. XVII together with the accumulations,
if any, in the Tariffs and Dividends Control Reserve less the
sum calculated as aforesaid falls short of the reasonable return,
the sum to be appropriated to the Development Reserve in respect
of such accounting year shall be reduced by the amount of the
shortfall.
(2) Any sum to be appropriated towards the Development Reserve
in respect. of any accounting year under sub-paragraph (1), may
be appropriated in annual instalments spread over a period not
exceeding five years from the commencement of that accounting
year.
(3) The Development Reserve shall be available only for investment
in the busiess of electricity supply of the undertaking.
(4) On the purchase of the undertaking, the Development Reserve
shall be handed over to the purchaser and maintained as such Development
Reserve: ]
3[Provided that where the undertaking is purchased by the Board
or the State Government, the amount of the Reserve 4[(whether
such amount is in the form of cash or other assets)] may be deducted
from the price payable to the licensee.]
5[VI. (a) The licensee shall provide each year for depreciation
such sum calculated in accordance with such principles as the
Central Government may, after consultation with the Authority,
by notification in the Official Gazette, lay down from time to
time.
(b) Where in any particular year depreciation cannot be adjusted
against revenue the same may be carried over to subsequent years.
(c) The provisions of this paragraph shall apply to the charging
of depreciation for the year in which The Electricity (Supply)
Amendment Act, 1978 (23 of 1978),comes into force.)
XII. Where contributions are made by consumers towards the cost
of construction of service/lines constructed after the date on
which this Act comes into force only the net cost of such service
lines after deducting such contributions shall be included in
the cost of fixed assets for the purposes of arriving at the capital
base:
Provided that for the purpose of depreciation under para. VI,
the total original cost of construction of the service lines shall
be taken into account.
XIII. (1) Subject to the provisions of sub-paragraph (2) the
ordinary remuneration of a managing agent excluding the office
allowance mentioned in sub-paragraph (3) but including, purchasing
commission, if any, shall be based on a percentage of net profits
6[ as determined in accordance with the provisions of Sec. 349
of the Companies Act, 1956 (1 of 1956), and shall not exceed-
(a) In respect of the first Rs. 5 lakhs of such net profits-10
percent. and
(b) In respect of all net profits in excess of Rs. 5 lakhs-7
percent.
(2) The amount paid to a managing agent shall be subject to a
minimum payment on account of ordinary remuneration not exceeding
two rupees per annum for each complete thousand rupees of paid-up
share and debenture capital, provided that for purposes of computing
the minimum payment should the share and debenture capital be
less than rupees five lakhs it shall be taken as rupees five lakhs
and should the said capital be greater than rupees one crore it
shall be taken as rupees one crore.
(3) An office allowance drawn by a managing agent which shall
include the salaries and wages of all persons employed in the
office of the managing agent, but not the salaries of the engineering
staff employed for purposes of the undertaking, shall be a percentage
of the operating expenditure and the expenditure during the year
of account on capital works. The office allowance so drawn shall
not exceed-
(a) In respect of the first Rs. 1 lakh of operating expenditure-8
per-cent.
In respect of the next Rs. 2 lakhs of operating expenditure-
5 per cent.
In respect of the next Rs. 7 lakhs of operating expenditure (2.5)
per cent.
In respect of all operating expenditure in excess of Rs. 10 lakhs-
1.5 per cent.
(b) In respect of the first Rs. 1 lakh of capital expenditure
incurred during the year of account-4 per cent.
In respect of the next Rs. 2 lakh of capital expenditure incurred
during the year of account-3 per- cent.
In respect of the next Rs. 7 lakhs of capital expenditure incurred
during the year of account-1.5 per- cent.
In respect of all capital expenditure in excess of Rs. 10 lakhs
incurred during the year of account-I per cent.
Operating expenditure for the purposes of sub-paragraph (3) (a)
above shall mean the sum of the items of expenditure as defined
in sub-paragraph (2) (b) of para.
XVII with the omission of those under Cls. (i), (iv), (ix) and
(x) thereof.
7[Explanation.-For the purposes of this paragraph, the expression
“managing agent” shall include every person, by whatever
name called, who is in charge of the management of the whole,
or substantially the whole, of the undertaking and where more
persons than one are placed in charge of the management of the
whole or substantially the whole, of the undertaking, the total
remuneration payable to all such persons shall not in the aggregate
exceed the limits specified in this paragraph.]
XIV. The Board of Directors of an undertaking shall not contain
more than ten directors.
XV. (1) Where at any time within three years before the next
option of purchase under the licence arises, the licensee proposes
to make any capital expenditure which exceeds 8[in any year of
account,] twenty-five thousand rupees or two per centum of the
capital base, whichever is more, in respect of which any amount
would in the event of purchase under the option be payable by
the purchaser to the licensee, the licensee shall, before giving
effect to such proposal, apply to the Board or where no Board
is constituted, the State Government for its concurrence.
(2) If the Board or the State Government, as the case may be,
does not within one month from the receipt of such application,
consent to such expenditure, the licensee may refer the matter
to the arbitration of the Authority.
XVI. Any dispute or difference as to the interpretation or any
matter arising out of the provisions of this Schedule shall be
referred to the arbitration of the Authority:
9(Provided that where a rating committee has been constituted
under Sec57-A, no such dispute or difference shall be referred
to the arbitration of the Authority during the period between
the date of the constitution of such Committee and the date of
the order of the State Government made on the recommendations
of the Committee.]
1. Ins. by Act 101 of 1956, Sec. 27 (w.e.f. 1st April, 1957).
2. Subs. 'by Act 23 of 1978, Sec. 23, for certain (w.e.f. 3rd
June, 1978).
3. Added by Act 30 of 1966, Sec. 21 (w.e.f. 1st April, 1966).
4. Ins. by Act 23 of 1978, Sec. 23 (w.e.f. 3rd June, 1978).
5. Subs. by ibid., Sec. 23, for paras. VI, VII, VIII, IX, X and
XI (w.e.f. 3rd June, 1978).
6. Subs. by Act 101 of 1956, Sec. 27, for the words, figures
and brackets “as defined in Sec. 87-C (3) of the Indian
Companies Act, 1913 (7 of 1913)” (w.e. f. 1st April, 1957).
7. Ins. by Act 101 of 1956, Sec. 27 (w.e.f. 1st April, 1957).
8. Ins. by Act 30 of 1966, Sec. 21, (w.e.f. lst April, 1966).
9. Ins. by Act I01 of 1956, Sec. 27 (w.e.f. 1st April, 1957).
Definitions
XVII. For the purposes of this Schedule-
(1) “Capital base” means the sum of-
1[(a) the original cost of fixed assets available for use and
necessary for the purpose of the undertaking subject to the provisions
of para. XII in respect of service-lines, and the excess amount
referred to in the proviso to sub-paragraph (2) of para. VII in
respect of any fixed asset which has ceased to be available for
use;]
(b) The cost of intangible assets 2[including expenses on account
of new capital issue];
(c) The original cost of works in progress:
3[(d) The amount of investments compulsorily made under para.
IV of this Schedule together with the amount of such investments
made after the commencement of this Act from contributions towards
depreciation as in the opinion of the Authority could not be utilised
for the purpose of the business of electricity supply of the undertaking:]
(e) An amount on account of working capital equal to the sum
of-
(i) One-twelfth of the sum of the book cost of stores, materials
and supplies including fuel on hand at the end of each month of
the year of account;
(ii) One-twelfth of the sum of 4[cash and bank balances (whether
credit or debit) and call and short-term deposits at the end of
each month of the year of account, not exceeding in the aggregate
an amount equal to one-quarter of the expenditure under sub-para.
(2) (b) of this paragraph excluding 5[sub-clauses (i), (iv) (iv-a),
(iv-b) and (x)];less-
(i) The amount written off or set aside on account of depreciation
of fixed assets and amounts written off in respect of intangible
assets in the books of the undertaking before or after the commencement
of this Act; 6[***]
(ii) The amount of any loans advanced by the Board 7 [***];
8[(ii-a) The amount of any loans borrowed from organisations
or Institutions approved by the State Government:
(ii-b) The amount of any debentures issued by the licensee:]
9[10(iii) The amounts deposited in cash with the licensee by
consumers by way of security; I
(iv) The amount standing to the credit of the Tariffs and Dividends
Control Reserve 8[at the beginning of the year of account];
11[(v) The amount standing to the credit of the Development Reserve
at the close of the year of account;]
(vi) The amount carried forward 8[at the beginning of the year
of account] in the accounts of the licensee for distribution to
the consumers under para.II.]
(2) “Clear profit” means -The difference between
the amount of income and the sum of expenditure plus specific
appropriations, made up in each case as follows: -
(a) Income derived from-
(i) Gross receipts from sale of energy, less discounts applicable
thereby;
(ii) Rental of meters and other apparatus hired to consumers;
(iii) Sale and repair of lamps and apparatus:
(iv) Rents, less outgoings not otherwise provided for;
(v) Transfer fees:
(vi) Investments fixed and call deposits and bank balances;
(vii) Other general receipts accountable in the assessment of
Indian Income-Tax and arising from and ancillary or incidental
to the business of Electricity supply, -
(b) 12[Expenditure properly incurred on]-
(i) Generation and purchase of energy:
(ii) Distribution and sale of energy;
(iii) Rents, rates and taxes, other than all taxes on income
and profits;
(iv) Interest on loans advanced by the Board 13[***];
14[(iv-a) Interest on loans borrowed from organisations or institutions
approved by the State Government;
(iv-b) Interest on debentures issued by the licensee;
(v) Interest on security deposits;
(vi) Legal charges;
(vii) Bad debts;
(viii) Auditor’s fees;
(ix) Management including managing agent's remuneration as provided
for in para. XIII;
(x) Depreciation, computed as 15[hereinbefore] set out;
(xi) Other expenses 16[(excluding interest on debentures and
loans)], admissible under the law for the time being in force
in the assessment of Indian Income-tax and arising from and ancillary
or incidental to the business of electricity supply;
17[(xii) Contributions to provident fund, staff pension and gratuity
computed under any law for the time being in force or any such
scheme as is approved by the State Government;
(xii-a) Expenses on apprentice and other training schemes;]
18[(xiii) Bonus paid to the employees of the undertaking-
(a) Where any dispute regarding such bonus has been referred
to any Tribunal or other authority under any law for the time
being in force relating to industrial or labour disputes, in accordance
with the decision of such Tribunal or authority;
(b) In any other case, with the approval of the State Government;]
(c) Special appropriations sufficient to cover-
(i) Previous losses (that is to say excess of expenditure over
income) which have arisen from the business of electricity supply
to the extent in any year 19[permitted by the State Government];
(ii) All taxes on income and profits;
(iii) Instalments of written-down amounts in respect of intangible
assets and new capital issue expenses to the extent in any year
actually appropriated for the purpose in the books of the undertaking:
provided that the amounts so appropriated shall not exceed the
amount found by dividing the written-down cost of such assets
by the number of complete years remaining before the next option
of purchase under the licence arises;
(iv) Contributions to the Contingency Reserve, computed as 15[herein
before] set out;
(v) Contributions towards arrears of depreciation;
19[(v-a) Contributions to the Development Reserve referred to
in para. V-A;]
20(v-b) Debt redemption obligation of the private licensees which
may be done on a year to year basis, taking into account the requirements
of debt redemption and resource generation through depreciation,
retained surplus;]:
(vi) Other special appropriations permitted by the State Government.
(3) “Debenture capital” means-Capital raised against
debentures or other instruments creating a charge or lien on the
assets of the undertaking.
(4) “Intangible assets” means-
Underwriter’s commission and such preliminary and promotional
expenditure shown as a debit in the capital account of the undertaking,
as has fairly arisen in promoting the business of electricity
supply excluding any amount paid on account of goodwill.
(5) “Ordinary capital” means-
In the case of a company, the amount of ordinary capital paid
up and attributable to the undertaking of the licensee;
In other cases the net amount standing to the credit of the proprietor
or proprietors' account or accounts whether in capital personal
or any other account howsoever called and properly attributable
to the business of electricity supply.
(6) “Original cost” means in respect of any asset
the sum of--
(a) The cost of the asset to the licensee, including the cost
of delivery and all charges properly incurred in erecting and
bringing the asset into beneficial use;
21[(b) Interest charges on capital expenditure incurred, during
the period between the date of the grant of the licence and the
date when the undertaking commences supply, from borrowed money
and properly attributable to the assets as actually accrued up
to the date of such supply as well as interest incurred on outlays
for subsequent expansions;]
(c) A proper addition on account of supervision not exceeding
fifteen per centum of the cost referred to in sub-paragraph (a),
so however that the original cost of any asset shall not in any
case exceed the original cost attributed thereto in the books
of the undertaking.
(7) “Preference (capital” means-
The amount of paid-up capital attributable to the undertaking
of the licensee, issued on such preferred term as are sufficient
to qualify it for such description.
22[ * * * * * * ]
(9) “Reasonable return” means--
In respect of any year of account, the sum of the following:
-
(a) The amount found by applying the standard rate to the capital
base at the end of that year;
23[(b) The income derived from investments other than those included
in the capital base under provisions of Cl. (d) of sub-paragraph
(1);]
(c) And amount equal to one-half of one per centum on any loans
advanced by the Board 24[* * *);
25[(C-1) An amount equal to one-half of one per centum on the
amounts borrowed from organisations or institutions approved by
the State Government;
(C-2) An amount equal to one-half of one per centum on the amounts
realised by the issue of debentures;]
26[(d) An amount equal to one-half of one per centum on the accumulations
in the Development Reserve created under para. V-A of this Schedule;
I
27[(e) Such other amount as may be allowed by the Central Government,
having regard to the prevailing tax structure in the country.]
28[(10) “Standard rate” in respect of any year of
account means-
(a) In relation to that part of the capital base for that year
of account which is equivalent to the capital base as on the 31st
day of March, 1955, seven per centum per annum;
(b) In relation to the remaining 29[capital base for that year,
the Reserve Bank rate ruling at the beginning of that year plus-
(i) Two per centum for investments made up to the date of the
commencement of The Electricity Laws (Amendment) Act, 1991; and
(ii) Five per centum for investments made thereafter:
Provided that the Central Government may, by notification in
the Official Gazette, and with effect from such date as may be
specified therein, increase or decrease the standard rate specified
in Cl. (b), if, after consultation with the Authority, that Government
considers it necessary so to do to ensure that any rise or fall
in the Reserve Bank rate does not affect the reasonable return
in any subsequent year of account in relation to that part of
the capital base which is equivalent to the capital base as computed
on the last date of the previous year of account;]
(11) “Written-down cost” means-
Original cost less the amounts set aside or written-off on account
of original in the books of the undertaking.
1. Subs. by Act 101 of 1956, Sec. 27, ibid. for Cl. (a) (w.e.f.
lst April, 1957).
2. Ins. by Act 30 1966, Sec. 21 (w.e.f. I st April, 1966).
3. Subs. by Act 101 of 1956, Sec. 27, for Cl. (d) (w.e.f. Ist
April, 1957).
4 Subs. by Act 30 of 1966, Sec, 21. for the words “cash
and bank balances” (w.e.f, 1st April, 1966).
5. Subs. by Sec. 21, ibid. for the words brackets, figures “Cls.
(i), (iv) arid (x)” (w.e.f. 1st April, 1966).
6. The word “and” omitted by Act 101 of 1956, See,
27, (w.e.f. 1st. April, 1957).
7. The words “under the provisions of sub-paragraph (2)
of para.1 of the First Schedule” omitted by Sec. 27 ibid.
(w.e.f. 1st.April, 1957).
8. His. by Act 30 of 1966. See. 21 (w.e.f. 1st.April, 1966).
9. Ins. by Act 10 1 of 1956, Sec. 27 (w.e.f. 1st.April, 1966).
10. Subs. by Act 30 of 1966, Sec. 21, for sub-clause (iii) (w.e.f.
1st. April, 1966).
11. Subs. by Sec. 21, ibid. for sub-clause (v) (w.e.f. 1st. April,
1966).
12. Subs. by Act 101 of 1956, Sec. 27, for the words “expenditure
incurred on” (w.e.f 1st. April, 1957).
13. The words “under sub-paragraph (2) of para. .1 of the
First Schedule” omitted by Act 101 of 1956, Sec. 27 (w.e.f.
1st April, 1957),
14. Ins. by Act 30 of 1966, Sec. 21 (w.e.f. 1st April, 1966).
15. Subs. by Act 101 of 1956, 27, for the words “hereinafter”
(w.e.f. 1st April, 1957).
16. Ins. by ibid. Sec. 27 (w.e.f. lst. April, 1966).
17. Subs. by Act 30 of 1966, Sec. 2 1, for sub-clause (xii),
(w.e.f. 1st April, 1966).
18. Subs. by Act 101 of 1956, Sec. 27, for the words “actually
appropriated for the purpose in the books of the undertaking”
(w.e.f. 1st April, 1957).
19. Ins. by Sec. 27, ibid. (w.e.f. Ist April, 1957).
20. Ins, by Act 50 of 1991, Sec. 14 (w.e.f. 15th October, 199
1).
21. Subs. by ibid., for Cl. (b) (w.e.f. 15th October, 1991).
22. Clause (8) omitted by Act 23 of 1978, Sec. 23 (w.e.f. 3rd
June, 1978).
23, Subs. by Act 1 0 1 of 1956, Sec. 27, for Cl. (b) (w.e.f.
1st April, 1957).
24. The words “under sub-paragraph (2) of para. I of the
First Schedule” omitted by Act I01 of 1956, Sec. 27, (w.e.f.
lst. April, 1957).
25. Ins. by Act 30 of 1966. Sec. 21 (w.e.f. I st April, 1966).
26. Ins. by Act 101 of 1956, Sec. 27 (w.e.f. 1st April. 1957).
27. Ins. by Act 30 of 1966, Sec. 21 (w.e.f. I st April, 1966).
28. Subs. by Act 30 of 1966, Sec. 2 1, for sub-paragraph (10)
(w.e.f. 1st April, 1966).
29. Subs. by Act 50 of 1991, See. 14 (w.e.f. 15th October, 1991).
PAYMENTS OUT OF THE CONTINGENCIES RESERVE. -Payments out of the
Contingencies Reserve can be made only with the State Government's
approval. It is particularly noteworthy that the electricity company
can make good from out of the contingencies Reserve even a loss
of profit arising out of strikes, accidents and other circumstances
over which it has no control. There can be no doubt, in the circumstances,
that the movies in the contingencies Reserve belong to the electricity
company1
1. Associated Power Co. Ltd. v. Commissioner of Income-tax, A.I.R.)
1996 S.C. 894 at p. 900.
THE SEVENTH SCHEDULE
Omitted by the Electricity Supply (Amendment) Act, 1978
(23 of 1978), Sec. 24.
THE EIGHTH SCHEDULE
(See The First and Third Schedules)
Determination of cost of production of electricity at
generating stations
1. For the purposes of the First and Third Schedules, the cost
of production of electricity at a generating station shall be
ascertained by calculating and taking into account the following
costs, charges and allowances in respect of the year of account,
namely:
(a) Sums expended for fuel, oil, water and stores consumed, for
salaries and wages, and any contribution by the licensee for pensions
provident fund, superannuation and insurance of 1[officers and
other employees], for repairs and maintenance and for renewals
not chargeable to capital account;
(b) Sums paid in respect of the station for insurance and as
rents, rates and taxes 2 [(including all taxes payable on income
and profits)];
(c) The proportion of management and general establishment charges
properly attributable to the station;
(d) Any other expenses on revenue account properly attributable
to the station;
(e) 3[Interest on the depreciated cost of the station shown in
the books of the undertaking and properly attributable to the
station (whether defrayed out of capital or revenue) and interest
on working capital properly attributable to the station and the
production of electricity therein]:
Provided that for the purpose of ascertaining the principal on
which interest is payable within the meaning of this clause, there
shall be left out of account any part of principal on which interest
is payable out of capital;
(f) An allowance for depreciation of an amount determined in
respect of the station in accordance with the provisions of para.
VI of the Sixth Schedule.
II. 4[For the purposes of Cl. (e) of para. I-
(i) “Depreciated cost of the station” means original
cost thereof as determined in accordance with the provisions of
sub-paragraph (6) of para. XVII of the Sixth Schedule less the
amount written off or set aside on account of depreciation on
fixed assets and the amount written off in respect of intangible
assets thereof in the books of the undertaking before or after
the commencement of this Act;
(ii) The rate of interest shall be,-]
(a) On such part of the principal on which interest is payable
within the meaning of the said clause as has been advanced on
loan by the Board under para. I of the First Schedule, the actual
rate charged by the Board plus one-half of one per centum per
annum on the loan in the year of account;
(b) On the balance of the said principal-
(i) Where the licensee owning the station is a local authority,
the average rate payable in the year of account on the money raised
by that authority for the purpose of the station;
(ii) In any other case, 5[the Reserve Bank rate ruling at the
beginning of that year plus two per centum].
1. Subs. by Act 23 of 1978, Sec. 25, for the words “officer
and servants” (w.e.f. 3rd June, 1978).
2. Subs. by Act 101 of 1956, Sec. 29, for the words and brackets
“(including super-tax payable by the licensee as company
but excluding other taxes on profits)” (w.e.f. 1st April,
1957).
3. Subs. ibid. for certain words.
4. Subs. by Act 30 of 1966, Sec. 22, for certain words (w.e.f.
1st April, 1966).
5 . Subs. by Act 101 of 1956, Sec. 29, for the figures and words
“5 per centum per annum (w.e.f. 1st April. 1957).
THE NINTH SCHEDULE
(See the First Schedule)
Allocation of Costs of Production at
Generating Stations
1. For the purposes of this Schedule, -
(a) The average load factor of a station shall be expressed as
a percentage, and shall be ascertained by multiplying the number
of kilowatt-hours supplied from the station during the year of
account by 100, and dividing the product so obtained by the product
of the average monthly maximum demand multiplied by the number
of hours during which the station was in commission in the year
of account;
(b) The average of monthly maximum demand shall be the arithmetical
average of the monthly maximum demands on the station in those
calendar months during which the station was in commission in
the year of account;
(c) A station shall be deemed to be in commission when the whole
or any portion of the plant in the station is generating electricity
or is in readiness to generate electricity upon demand;
(d) “Cost of fuel” means the sums expended for fuel
consumed plus the cost of any transport, handling, preparation
or treatment incurred in connection with the delivery of fuel
to the boiler hoppers, furnaces or engines and in connection with
the disposal of the products or residues of combustions, plus
the proportion of salaries and wages and any contributions made
by the owner of the station for pensions, provident fund, superannuation
and insurance of officers and servants properly attributable to
such delivery or disposal, less any sums received from the sale
of any products or residues of combustion;
(e) “Cost of oil, water and stores” means the sums
expended for oil, water and stores consumed;
(f) “Cost of repairs, maintenance and renewals” means
the sums expended for repairs and maintenance and for renewals
not chargeable to capital account, together with the proportion
of salaries and wages and any contributions made by the owner
of the station for pensions, provident fund, superannuation and
insurance of 1 [officers and other employees] properly attributable
to repairs, maintenance and renewals;
(g) “Salaries and wages” means the sums expended
for salaries and wages and any contributions made by the owner
of the station for pension, provident fund, superannuation and
insurance of officers and servants, less the proportion of such
sums properly attributable to the cost of fuel under Cl. (d) and
to the cost of repairs, maintenance and under Cl. (f).
II. Of the cost of production of electricity at a generating
station ascertained in accordance with the Eighth Schedule, the
following costs, charges and allowances in respect of the year
of account shall be allocated as “fixed costs”, namely:
(a) Of the costs, charges and allowances set out in Cl. (a) of
para. I of the said Schedule, portions calculated from the appropriate
formula set out In para. III;
(b) The whole of the costs, charges and allowances set out in
the remaining clauses of para. I of the said Schedule.
III. The portion of the following costs, charges and allowances
to be allocated, as fixed costs shall be ascertained from the
formula hereinafter set out against each, namely:-
(a) Cost of fuel 100
100 + 12.8 L
(b) Cost of oil, Water and stores 100
100 + 9.66 L
(c) Salaries and wages 100
100+0.38L
(d) Cost of repairs, maintenance and renewals 100
100+0.0001 NL
Where-
2[ L = the percentage average load factor of the station;]
N = the number of hours during which the station was in commission
in the year of account.
IV. The amount of the difference between the costs of production
at a generating station ascertained in accordance With the Eighth
Schedule and the fixed costs in respect of the year of account
determined in accordance With this Schedule shall be allocated
as “running costs”.
V. The foregoing provisions of this Schedule shall not apply
in any case where it is agreed between the Board and the owner
of the station that the circumstances or conditions of operation
in the station, whether temporary or continuing, are such that
the said provisions ought not reasonably to be applied; and in
such case the' allocation between fixed costs and running costs
shall be made in such manner as the Board and the said owner may
agree.
1. Subs. by Act 23 of 1978, Sec. 25, for the words “officers
and servants” (w.e.f. 3rd June, 1978).
2 . Subs. by Act 30 of 1966, Sec. 23, for the words, “L
= the average load factor of the station” (w.e.f. 1st April.
1966).
________________________
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