LexThe Electricity Act No. 10 of 1949 Date 02.04.1949
Chhattisgarh · state statute
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THE ELECTRICITY ACT, 2003
[No. 36 OF 2003]
An Act to consolidate the laws relating to generation, transmission, distribution,
trading and use of electricity and generally for taking measures conducive to
development of electricity industry, promoting competition therein, protecting
interest of consumers and supply of electricity to all areas , rationalisation of
electricity tariff, ensuring transparent policies regarding subsidies, promotion of
efficient and environmentally benign policies constitution of Central Electricity
Authority, Regulatory Commissions and establishment of Appellate Tribunal
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No. 39)
REGISTERED NO. DL-330<W2003
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EXTRAORDINARY
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PART D - Section I
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PUBLISHED BY AUTHORITY
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NEW DELIII, MONDAY, JUNE 2, 2003 / J YAISTIIA 12, 1925
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Separate pns::lng is p:inn to this Pon In order lhnt it may be filed us B sc1>-11ratc compi!Utlon.
MINISTRY OF LAW AND JUSTICE
(Lcgbllt ivc Oc11artmrnt)
New Del/,/, !he 2nd Ju,re, 2003/Jyal,rtha I 2, l 925(Saka)
The following Act ofParliamcnl received the=•• of the President on the 26th May, 2003, and is hereby published for general infonnation :-
THE ELECTRICITY ACT, 2003
[No. 36 OF 2003)
[26rh May, 2003]
An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitutionofCentral Electricity Authority, R~latory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.
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Short title, extent
and
commencement
Definitions
and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Fifty- fourth Year of the Republic of India as
follows: -
PART I
PRELIMINARY
1. (1) This Act may be called the Electricity Act, 2003.
(2) It extends to the whole of India except the State of Jammu and
Kashmir.
(3) It shall come into force on such date as the Central Government may,
by notification, appoint:
Provided that different dates may be appointed for different provisions of this
Act and any reference in any such provision to the commencement of this Act shall
be construed as a reference to the coming into force of that provision.
2. In this Act, unless the context otherwise requires,
(1) “ Appellate Tribunal” means the Appellate Tribunal for Electricity
established under section 110;
(2) "appointed date" means such date as the Central Government may, by
notification, appoint;
(3) "area of supply” means the area within which a distribution licensee is
authorised by his licence to supply electricity;
(4) "Appropriate Commission” means the Central Regulatory Commission
referred to in sub-section (1) of section 76 or the State Regulatory
Commission referred to in section 82 or the Joint Commission referred to in
section 83, as the case may be ;
(5) "Appropriate Government" means, -
(a) the Central Government, -
(i) in respect of a generating company wholly or partly
owned by it;
(ii) in relation to any inter-State generation, transmission,
trading or supply of electricity and with respect to any
mines, oil-fields, railways, national highways, airports,
telegraphs, broadcasting stations and any works of
defence, dockyard, nuclear power installations;
(iii) in respect of National Load Despatch Centre; and
Regional Load Despatch Centre;
(iv) in relation to any works or electric installation belonging
to it or under its control ;
(b) in any other case, the State Government, having jurisdiction
under this Act;
(6) “ Authority “ means the Central Electricity Authority referred to in
sub-section(1) of section 70;
(7) "Board" means, a State Electricity Board, constituted before the
commencement of this Act, under sub-section (I) of section 5 of the
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commencement of this Act, under sub-section (I) of section 5 of the
Electricity (Supply) Act, 1948;
(8) ª Captive generating plantº means a power plant set up by any person
to generate electricity primarily for his own use and includes a power
plant set up by any co-operative society or association of persons for
generating electricity primarily for use of members of such co-
operative society or association;
(9) "Central Commission" means the Central Electricity Regulatory
Commission referred to in sub-section (1) of section 76;
(10) "Central Transmission Utility" means any Government company
which the Central Government may notify under sub-section (1) of
section 38;
(11) " Chairperson" means the Chairperson of the Authority or Appropriate
Commission or the Appellate Tribunal as the case may be;
(12) ª Cogenerationº means a process which simultaneously produces two
or more forms of useful energy (including electricity);
(13) "company" means a company formed and registered under the
Companies Act, 1956 and includes any body corporate under a Central,
State or Provincial Act;
(14) "conservation" means any reduction in consumption of electricity as a
result of increase in the efficiency in supply and use of electricity;
(15) "consumer" means any person who is supplied with electricity for his
own use by a licensee or the Government or by any other person
engaged in the business of supplying electricity to the public under
this Act or any other law for the time being in force and includes any
person whose premises are for the time being connected for the
purpose of receiving electricity with the works of a licensee, the
Government or such other person, as the case may be;
(16) " Dedicated Transmission Lines " means any electric supply line for
point to point transmission which are required for the purpose of
connecting electric lines or electric plants of a captive generating plant
referred to in section 9 or generating station referred to in section 10 to
any transmission lines or sub-stations or generating stations or the load
centre, as the case may be;
(17) "distribution licensee" means a licensee authorised to operate and
maintain a distribution system for supplying electricity to the
consumers in his area of supply;
(18) "distributing main" means the portion of any main with which a
service line is, or is intended to be, immediately connected;
(19) "distribution system" means the system of wires and associated
facilities between the delivery points on the transmission lines or the
generating station connection and the point of connection to the
installation of the consumers;
(20) "electric line" means any line which is used for carrying electricity for
any purpose and includes
(a) any support for any such line, that is to say, any structure, tower,
pole or other thing in, on, by or from which any such line is, or
may be, supported, carried or suspended; and
1 of 1956
4
(b) any apparatus connected to any such line for the purpose of
carrying electricity;
(21) "Electrical Inspector" means a person appointed as such by the
Appropriate Government under sub-section (1) of section 162 and also
includes Chief Electrical Inspector;
(22) "electrical plant" means any plant, equipment, apparatus or appliance or
any part thereof used for, or connected with, the generation,
transmission, distribution or supply of electricity but does not include-
(a) an electric line; or
(b) a meter used for ascertaining the quantity of electricity supplied to
any premises; or
(c) an electrical equipment, apparatus or appliance under the control
of a consumer;
(23) "electricity" means electrical energy-
(a) generated, transmitted, supplied or traded for any purpose; or
(b) used for any purpose except the transmission of a message;
1 of 1956
(24) "Electricity Supply Code" means the Electricity Supply Code specified
under section 50;
(25) "electricity systemº means a system under the control of a generating
company or licensee, as the case may be, having one or more -
(a) generating stations; or
(b) transmission lines; or
(c) electric lines and sub-stations;
and when used in the context of a State or the Union, the entire
electricity system within the territories thereof;
(26) "electricity trader" means a person who has been granted a licence to
undertake trading in electricity under section 12;
(27) ª franchisee means a persons authorised by a distribution licensee to
distribute electricity on its behalf in a particular area within his area
of supply;
(28) "generating company" means any company or body corporate or
association or body of individuals, whether incorporated or not, or
artificial juridical person, which owns or operates or maintains a
generating station;
(29) "generate" means to produce electricity from a generating station for
the purpose of giving supply to any premises or enabling a supply to
be so given;
(30) "generating station" or ª stationº means any station for generating
electricity, including any building and plant with step-up transformer,
switch yard, 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 building used for housing the
operating staff of a generating station, and where electricity is
5
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-station;
(31) “ Government company” shall have the meaning assigned to it in
section 617 of the Companies Act, 1956;
(32) "grid" means the high voltage backbone system of inter-connected
transmission lines, sub-stations and generating plants;
(33) "Grid Code" means the Grid Code specified by the Central Commission
under clause (h) of sub-station (1) of section 79;
(34) "Grid Standards" means the Grid Standards specified under clause (d)
of section 73 by the Authority;
(35) "high voltage line” means an electric line or cable of a nominal
voltage as may be specified by the Authority from time to time;
(36) “ inter-State transmission system” includes -
(i) any system for the conveyance of electricity by means of main
transmission line from the territory of one State to another State;
(ii) the conveyance of electricity across the territory of an intervening
State as well as conveyance within the State which is incidental to
such inter-State transmission of electricity;
(iii) the transmission of electricity within the territory of a State on a
system built, owned, operated, maintained or controlled by Central
Transmission Utility.
(37) “ intra -State transmission system” means any system for
transmission of electricity other than an inter-State transmission
system ;
(38) “ licence” means a licence granted under section 14;
(39) “ licensee “ means a person who has been granted a licence under
section 14;
(40) “ line” means any wire, cable, tube , pipe, insulator, conductor or
other similar thing (including its casing or coating) which is
designed or adapted for use in carrying electricity and includes any
line which surrounds or supports, or is surrounded or supported by
or is installed in close proximity to, or is supported, carried or
suspended in association with, any such line;
(41) “ local authority” means any Nagar Panchayat, Municipal Council,
municipal corporation, panchayat constituted at the village,
intermediate and district levels, body or port commissioners or other
authority legally entitled to, or entrusted by the Union or any State
Government with, the control or management of any area or local
fund;
(42) "main” means any electric supply-``` line through which electricity is,
or is intended to be, supplied ;
(43) "Member" means the Member of the Appropriate Commission or
Authority or Joint Commission, or the Appellate Tribunal, as the case
may be, and includes the Chairperson of such Commission or
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may be, and includes the Chairperson of such Commission or
Authority or appellate tribunal;
(44) "National Electricity Plan" means the National Electricity Plan notified
under sub-section (4) of section 3;
(45) ª National Load Despatch Centreº means the Centre established under
sub-section (1) of section 26;
(46) ª notificationº means notification published in the Official Gazette and
the expression ª notifyº shall be construed accordingly;
(47) ª open accessº means the non-discriminatory provision for the use of
transmission lines or distribution system or associated facilities with
such lines or system by any licensee or consumer or a person engaged
in generation in accordance with the regulations specified by the
Appropriate Commission;
(48) ª overhead lineº means an electric line which is placed above the ground
and in the open air but does not include live rails of a traction system;
(49) ª personº shall include any company or body corporate or association or
body of individuals, whether incorporated or not, or artificial juridical
person;
(50) "power system" means all aspects of generation, transmission,
distribution and supply of electricity and includes one or more of the
following, namely:-
(a) generating stations;
(b) transmission or main transmission lines;
(c) sub-stations;
(d) tie-lines;
(e) load despatch activities;
(f) mains or distribution mains;
(g) electric supply-lines;
(h) overhead lines;
(i) service lines;
(j) works;
(51) ª premisesº includes any land, building or structure;
(52) ª prescribedº means prescribed by rules made by the Appropriate
Government under this Act;
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(53) "public lamp" means an electric lamp used for the lighting of any street;
(54) "real time operation" means action to be taken at a given time at which
information about the electricity system is made available to the
concerned Load Despatch Centre;
(55) “ Regional Power Committee” means a committee established by
resolution by the Central Government for a specified region for
facilitating the integrated operation of the power systems in that region;
(56) "Regional Load Despatch Centre" means the centre established under
sub-section (1) of section 27;
(57) "regulations" means regulations made under this Act;
(58) “ repealed laws” means the Indian Electricity Act, 1910, the Electricity
(Supply) Act, 1948 and the Electricity Regulatory Commissions Act,
1998 repealed by section 185;
(59) "rules " means rules made under this Act;
(60) “ schedule” means the schedule to this Act;
(61) "service-line" means any electric supply line through which electricity
is, or is intended to be,supplied -
(a) to a single consumer either from a distributing main or immediately
from the Distribution Licensee's premises; or
(b) from a distributing main to a group of consumers on the same
premises or on contiguous premises supplied from the same point of
the distributing main;
(62) "specified" means specified by regulations made by the Appropriate
Commission or the Authority, as the case may be, under this Act;
(63) “ stand alone system” means the electricity system set up to generate
power and distribute electricity in a specified area without connection to
the grid;
(64) "State Commission" means the State Electricity Regulatory Commission
constituted under sub-section (1) of section 82 and includes a Joint
Commission constituted under sub-section (1) of section 83;
(65) "State Grid Code" means the State Grid Code referred under clause (h) of
sub-section (1) of section 86;
(66) "State Load Despatch Centre" means the centre established under sub-
section (1) of section 31;
(67) "State Transmission Utility" means the Board or the Government
company specified as such by the State Government under sub-section (1)
of section 39;
(68) "street" includes any way, road, lane, square, court, alley, passage or open
space, whether a thoroughfare or not, over which the public have a right of
way, and also the roadway and footway over any public bridge or
causeway;
(69) "sub-station" means a station for transforming or converting electricity for
the transmission or distribution thereof and includes transformers,
9 of 1910
54 of 1948
14 of 1998
8
converters, switchgears, capacitors, synchronous condensers, structures,
cable and other appurtenant equipment and any buildings used for that
purpose and the site thereof;
(70) "supply", in relation to electricity, means the sale of electricity to a licensee
or consumer;
(71) "trading" means purchase of electricity for resale thereof and the
expression "trade" shall be construed accordingly;
(72) ª transmission lines" means all high pressure cables and overhead lines
(not being an essential part of the distribution system of a licensee)
transmitting electricity from a generating station to another generating
station or a sub-station, together with any step-up and step-down
transformers, switch-gear and other works necessary to and used for the
control of such cables or overhead lines, and such buildings or part
thereof as may be required to accommodate such transformers, switch-
gear and other works;
(73) "transmission licenseeº means a licensee authorised to establish or
operate transmission lines;
(74) "transmit" means conveyance of electricity by means of transmission lines
and the expression "transmission" shall be construed accordingly;
(75) "utility" means the electric lines or electrical plant, and includes all lands,
buildings, works and materials attached thereto belonging to any person
acting as a generating company or licensee under the provisions of this
Act;
(76) "wheeling" means the operation whereby the distribution system and
associated facilities of a transmission licensee or distribution licensee, as
the case may be, are used by another person for the conveyance of
electricity on payment of charges to be determined under section 62;
(77) "works" includes electric line, and any building, plant, machinery,
apparatus and any other thing of whatever description required to transmit,
distribute or supply electricity to the public and to carry into effect the
objects of a licence or sanction granted under this Act or any other law for
the time being in force.
National
Electricity Policy
and Plan
PART II
NATIONAL ELECTRICITY POLICY AND PLAN
3. (1) The Central Government shall, from time to time, prepare the national
electricity policy and tariff policy, in consultation with the State Governments and
the Authority for development of the power system based on optimal utilisation of
resources such as coal, natural gas, nuclear substances or materials, hydro and
renewable sources of energy.
(2) The Central Government shall publish National Electricity Policy
and tariff policy from time to time.
(3) The Central Government may, from time to time, in consultation
with the State Governments and the Authority, review or revise, the National
Electricity Policy and tariff policy referred to in sub-section (1) .
(4) The Authority shall prepare a National Electricity Plan in
accordance with the National Electricity Policy and notify such plan once in five
years:
.
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National policy
on stand alone
systems for
rural areas and
non-
conventional
energy systems.
National policy
on
electrification
and local
distribution in
rural areas.
Obligations to
supply electricity
to rural areas.
Generating
Company and
requirement for
setting up of
generating
station
Hydro-electric
generation
Provided that the Authority in preparing the National Electricity
Plan shall publish the draft National Electricity Plan and invite suggestions and
objections thereon from licensees, generating companies and the public within such
time as may be prescribed:
Provided further that the Authority shall -
(a) notify the plan after obtaining the approval of the Central Government;
(b) revise the plan incorporating therein the directions, if any, given by the
Central Government while granting approval under clause (a).
(5) The Authority may review or revise the National Electricity Plan in
accordance with the National Electricity Policy.
4. The Central Government shall, after consultation with the State
Governments, prepare and notify a national policy, permitting stand alone systems
(including those based on renewable sources of energy and non-conventional
sources of energy ) for rural areas.
5. The Central Government shall also formulate a national policy, in consultation
with the State Governments and the State Commissions, for rural electrification
and for bulk purchase of power and management of local distribution in rural areas
through Panchayat Institutions, users’ associations, co-operative socities, non-
Governmental organisations or franchisees.
6. The Appropriate Government shall endeavour to supply electricity to
all areas including villages and hamlets.
PART III
GENERATION OF ELECTRICITY
7. Any generating company may establish, operate and maintain a generating
station without obtaining a licence under this Act if it complies with the technical
standards relating to connectivity with the grid referred to in clause (b) of
section 73.
8. (1)
Notwithstanding anything contained in section 7, any generating company
intending to set-up a hydro-generating station shall prepare and submit to the
Authority for its concurrence, a scheme estimated to involve a capital expenditure
exceeding such sum, as may be fixed by the Central Government, from time to
time, by notification.
(2) The Authority shall, before concurring in any scheme
submitted to it under sub-section (1) have particular regard to, whether or not in
its opinion,-
(a) the proposed river-works will prejudice the prospects for the best
ultimate development of the river or its tributaries for power generation, consistent
with the requirements of drinking water, irrigation, navigation, flood-control, or
other public purposes, and for this purpose the Authority shall satisfy itself, after
consultation with the State Government, the Central Government, or such other
agencies as it may deem appropriate, that an adequate study has been made of the
optimum location of dams and other river-works;
(b)
the proposed scheme meets, the norms regarding dam design
and safety.
10
Captive
Generation
Duties of
Generating
Companies
Direction to
generating
companies
(3) Where a multi-purpose scheme for the development of any river
in any region is in operation, the State Government and the generating company
shall co-ordinate their activities with the activities of the person responsible for
such scheme in so far as they are inter-related.
9. (1) Notwithstanding anything contained in this Act, a person may
construct, maintain or operate a captive generating plant and dedicated
transmission lines:
Provided that the supply of electricity from the captive generating plant
through the grid shall be regulated in the same manner as the generating station of
a generating company.
(2) Every person, who has constructed a captive generating plant and
maintains and operates such plant, shall have the right to open access for the
purposes of carrying electricity from his captive generating plant to the
destination of his use:
Provided that such open access shall be subject to availability of
adequate transmission facility and such availability of transmission facility shall
be determined by the Central Transmission Utility or the State Transmission
Utility, as the case may be:
Provided further that any dispute regarding the availability of transmission
facility shall be adjudicated upon by the Appropriate Commission.
10. (1)
Subject to the provisions of this Act, the duties of a generating
company shall be to establish, operate and maintain generating stations, tie-lines,
sub-stations and dedicated transmission lines connected therewith in accordance
with the provisions of this Act or the rules or regulations made thereunder.
(2) A generating company may supply electricity to any licensee in
accordance with this Act and the rules and regulations made thereunder and may,
subject to the regulations made under sub-section (2) of section 42, supply
electricity to any consumer.
(3) Every generating company shall -
(a) submit technical details regarding its generating stations to the
Appropriate Commission and the Authority;
(b) co-ordinate with the Central Transmission Utility or the State
Transmission Utility, as the case may be, for transmission of the
electricity generated by it.
11. (1) The Appropriate Government may specify that a generating
company shall,
in extraordinary circumstances operate and maintain any generating
station in accordance with the directions of that Government.
Explanation. - For the purposes of this section, the expression ª extraordinary
circumstancesº means circumstances arising out of threat to security of the State,
public order or a natural calamity or such other circumstances arising in the public
interest.
(2)
The Appropriate Commission may offset the adverse financial
impact of the directions referred to in sub-section (1) on any generating company
in such manner as it considers appropriate.
11
Authorised
persons to
transmit,
supply, etc.,
electricity
Power to
exempt
Grant of
Licence
14 of 1948
PART IV
LICENSING
12. No person shall
(a) transmit electricity; or
(b) distribute electricity; or
(c) undertake trading in electricity,
unless he is authorised to do so by a licence
issued under section 14, or
is exempt under section 13.
13. The Appropriate Commission may, on the recommendations, of the
Appropriate Government, in accordance with the national policy formulated under
section 5 and in public interest, direct, by notif
ication that subject to such
conditions and restrictions, if any, and for such period or periods, as may be
specified in the notification, the provisions of section 12 shall not apply to any local
authority, Panchayat Institution, users’ association, co-operative societies, non-
governmental organizations, or franchisees:
14. The Appropriate Commission may, on application made to it under
section 15, grant any person licence to any person -
(a) to transmit electricity as a transmission licensee; or
(b) to distribute electricity as a distribution licensee; or
(c) to undertake trading in electricity as an electricity trader,
in any area which may be specified in the licence:
Provided that any person engaged in the business of transmission or
supply of electricity under the provisions of the repealed laws or any Act specified
in the Schedule on or before the appointed date shall be deemed to be a licensee
under this Act for such period as may be stipulated in the licence, clearance or
approval granted to him under the repealed laws or such Act specified in the
Schedule, and the provisions of the repealed laws or such Act specified in the
Schedule in respect of such licence shall apply for a period of one year from the
date of commencement of this Act or such earlier period as may be specified, at
the request of the licensee, by the Appropriate Commission and thereafter the
provisions of this Act shall apply to such business:
Provided further that the Central Transmission Utility or the State
Transmission Utility shall be deemed to be a transmission licensee under this Act:
Provided also that in case an Appropriate Government transmits electricity
or distributes electricity or undertakes trading in electricity, whether before or after
the commencement of this Act, such Government shall be deemed to be a licensee
under this Act, but shall not be required to obtain a licence under this Act:
Provided also that the Damodar Valley Corporation, established under
sub-section (1) of section 3 of the Damodar Valley Corporation Act, 1948, shall be
deemed to be a licensee under this Act but shall not be required to obtain a licence
under this Act and the provisions of the Damodar Valley Corporation Act, 1948, in
so far as they are not inconsistent with the provisions of this Act, shall continue to
apply to that Corporation:
Provided also that the Government company or the company referred to
in sub-section (2) of section 131 of this Act and the company or companies
created in pursuance of the Acts specified in the Schedule, shall be deemed to be a
licensee under this Act:
Provided also that the Appropriate Commission may grant a licence to two
or more persons for distribution of electricity through their own distribution system
within the same area, subject to the conditions that the applicant for grant of licence
12
Procedure for
Grant of
Licence
within the same area, subject to the conditions that the applicant for grant of licence
within the same area shall, without prejudice to the other conditions or
requirements under this Act, comply with the additional requirements (including
the capital adequacy, credit-worthiness, or code of conduct) as may be prescribed
by the Central Government, and no such applicant who complies with all the
requirements for grant of licence, shall be refused grant of licence on the ground
that there already exists a licensee in the same area for the same purpose:
Provided also that in a case where a distribution licensee proposes to
undertake distribution of electricity for a specified area within his area of supply
through another person, that person shall not be required to obtain any separate
licence from the concerned State Commission and such distribution licensee shall
be responsible for distribution of electricity in his area of supply:
Provided also that where a person intends to generate and distribute
electricity in a rural area to be notified by the State Government, such person shall
not require any licence for such generation and distribution of electricity, but he
shall comply with the measures which may be specified by the Authority under
section 53:
Provided also that a distribution licensee shall not require a licence to
undertake trading in electricity.
15. (1) Every application under section 14 shall be made in such form
and in such manner as may be specified by the Appropriate Commission and shall
be accompanied by such fee as may be prescribed.
(2) Any person who has made an application for grant of licence
shall, within seven days after making such application, publish a notice of his
application with such particulars and in such manner as may be specified and a
licence shall not be granted -
(i) until the objections, if any, received by the Appropriate
Commission in response to publication of the application have been considered
by it:
Provided that no objection shall be so considered unless it is received
before the expiration of thirty days from the date of the publication of such notice
as aforesaid;
(ii) until, in the case of an application for a licence for an area
including the whole or any part of any cantonment, aerodrome, fortress, arsenal,
dockyard or camp or of any building or place in the occupation of the
Government for defence purposes, the Appropriate Commission has ascertained
that there is no objection to the grant of the licence on the part of the Central
Government.
(3) A person intending to act as a transmission licensee shall,
immediately on making the application, forward a copy of such application to the
Central Transmission Utility or the State Transmission Utility, as the case may
be.
(4) The Central Transmission Utility or the State Transmission
Utility, as the case may be, shall, within thirty days after the receipt of the copy of
the application referred to in sub-section (3), send its recommendations, if any, to
the Appropriate Commission:
Provided that such recommendations shall not be binding on the
Commission.
(5) Before granting a licence under section 14, the Appropriate
Commission shall -
13
Conditions of
licence.
Licensee not
to do certain
things.
(a) publish a notice in two such daily newspapers, as that
Commission may consider necessary, stating the name of the
person to whom it proposes to issue the licence;
(b) consider all suggestions or objections and the recommendations,
if any, of the Central Transmission Util
ity or State Transmission
Utility, as the case may be.
(6) Where a person makes an application under sub-section (1) of
section 14 to act as a licensee, the Appropriate Commission shall, as far as
practicable, within ninety days after receipt of such application, -
(a) issue a licence subject to the provisions of this Act and the rules
and regulations made thereunder; or
(b) reject the application for reasons to be recorded in writing if such
application does not conform to the provisions of this Act or the
rules and regulations made thereunder or the provisions of any
other law for the time being in force:
Provided that no application shall be rejected unless the applicant has
been given an opportunity of being heard.
(7) The Appropria
te Commission shall, immediately after issue of
licence, forward a copy of the licence to the Appropriate Government , Authority,
local authority, and to such other person as the Appropriate Commission
considers necessary.
(8) A licence shall continue to be in force for a period of twenty-
five years unless such licence is revoked.
16. The Appropriate Commission may specify any general or specific
conditions which shall apply either to a licensee or class of licensees and such
conditions shall be deemed to be conditions of such licence:
Provided that the Appropriate Commission shall, within one year from
the appointed date, specify any general or specific conditions of licence applicable
to the licensees referred to in the first, second, third, fourth and fifth provisos to
section 14 after the expiry of one year from the commencement of this Act.
17. (1) No licensee shall, without prior approval of the Appropriate
Commission, -
(a) undertake any transaction to acquire by purchase or takeover or
otherwise, the utility of any other licensee; or
(b) merge his utility with the utility of any other licensee:
Provided that nothing contained in this sub-section shall apply if the
utility of the licensee is situate in a State other than the State in which the utility
referred to in clause (a) or clause (b) is situate.
(2) Every licensee shall, before obtaining the approval under sub-
section (1), give not less than one month’s notice to every other licensee who
transmits or distributes, electricity in the area of such licensee who applies for such
approval.
(3) No licensee shall at any time assign his licence or transfer his
utility, or any part thereof, by sale, lease , exchange or otherwise without the prior
approval of the Appropriate Commission.
14
Amendment
of licence
(4) Any agreement relating to any transaction specified in sub-
section (1) or sub-section (3), unless made with, the prior approval of the
Appropriate Commission, shall be void.
18. (1) Where in its opinion the public interest so permits, the
Appropriate Commission, may, on the application of the licensee or otherwise,
make such alterations and amendments in the terms and conditions of a licence as it
thinks fit:
Revocation of
licence
Provided that no such alterations or amendments shall be made except
with the consent of the licensee unless such consent has, in the opinion of the
Appropriate Commission, been unreasonably withheld.
(2) Before any alterations or amendments in the licence are made
under this section, the following provisions shall have effect, namely: -
(a) where the licensee has made an application under sub-section (1)
proposing any alteration or modifications in his licence, the
licensee shall publish a notice o
f such application with such
particulars and in such manner as may be specified;
(b) in the case of an application proposing alterations or
modifications in the area of supply comprising the whole or any
part of any cantonment, aerodrome, fortress, arsenal, dockyard or
camp or of any building or place in the occupation of the
Government for defence purposes, the Appropriate Commission
shall not make any alterations or modifications except with the
consent of the Central Government;
(c) where any alterations or modifications in a licence are proposed
to be made otherwise than on the application of the licensee, the
Appropriate Commission shall publish the proposed alterations or
modifications with such particulars and in such manner as may
be specified;
(d) the Appropriate Commission shall not make any alterations or
modification unless all suggestions or objections received within
thirty days from the date of the first publication of the notice
have been considered.
19. (1) If the Appropriate Commission, after making an enquiry, is
satisfied that public interest so requires, it may revoke a licence in any of the
following cases, namely: -
(a) where the licensee, in the opinion of the Appropriate Commission,
makes wilful and prolonged default in doing anything required of
him by or under this Act or the rules or regulations made
thereunder;
(b) where the licensee breaks any of the terms or conditions of his
licence the breach of which is expressly declared by such licence
to render it liable to revocation;
(c) where the licensee fails, within the period fixed in this behalf by
his licence, or any longer period which the Appropriate
Commission may have granted therefor –
(i) to show, to the satisfaction of the Appropriate Commissio
n,
that he is in a position fully and efficiently to discharge the duties
and obligations imposed on him by his licence; or
15
Sale of utilities
of licensees.
and obligations imposed on him by his licence; or
(ii) to make the deposit or furnish the security, or pay the fees or
other charges required by his licence;
(d) where in the opinion of the Appropriate Commission the financial
position of the licensee is such that he is unable fully and
efficiently to discharge the duties and obligations imposed on him
by his licence.
(2) Where in its opinion the public interest so requires, the
Appropriate Commission may, on application, or with the consent of the licensee,
revoke his licence as to the whole or any part of his area of distribution or
transmission or trading upon such terms and conditions as it thinks fit.
(3) No licence shall be revoked under sub-section (1) unless the
Appropriate Commission has given to the licensee not less than three
months’notice, in writing, stating the grounds on which it is proposed to revoke the
licence, and has considered any cause shown by the licensee within the period of
that notice, against the proposed revocation.
(4) The Appropriate Commission may, instead of revoking a licence
under sub-section (1), permit it to remain in force subject to such further terms and
conditions as it thinks fit to impose, and any further terms or conditions so imposed
shall be binding upon and be observed by the licensee and shall be of like force and
effect as if they were contained in the licence.
(5) Where the Commission revokes a licence under this section, it
shall serve a notice of revocation upon the licensee and fix a date on which the
revocation shall take effect.
(6) Where an Appropriate Commission has given notice for
revocation of licence under sub-section (5), without prejudice to any penalty which
may be imposed or prosecution proceeding which may be initiated under this Act,
the licensee may, after prior approval of that Commission, sell his utility to any
person who is found eligible by that Commission for grant of licence.
20. (1) Where the Appropriate Commission revokes under section 19 the
licence of any licensee , the following provisions shall apply, namely:-
(a) the Appropriate Commission shall invite applications for
acquiring the utility of the licensee whose licence has been
revoked and determine which of such applications should be
accepted, primarily on the basis of the highest and best price
offered for the utility;
(b) the Appropriate Commission may, by notice in writi
ng, require
the licensee to sell his utility and thereupon the licensee shall sell
his utility to the person (hereafter in this section referred to as
the “ purchaser” ) whose application has been accepted by that
Commission;
(c) all the rights, duties, obligations and liabilities of the licensee, on
and from the date of revocation of licence or on and from the
date, if earlier, on which the utility of the licensee is sold to a
purchaser, shall absolutely cease except for any liabilities which
have accrued prior to that date;
(d) the Appropriate Commission may make such interim
arrangements in regard to the operation of the utility as may be
considered appropriate including the appointment of
16
Vesting of
utility in
purchExcerpt shown. Open the full act in Lexace.