LexThe DELHI ELECTRICITY REFORM ACT 2000
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THE DELHI ELECTRICITY REFORM ACT, 2000
(DELHI ACT NO. 2 of 2001)
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
(DEPARTMENT OF LAW, JUSTICE & LEGISLATIVE ASSEMBLY AFFAIRS)
5, SHAM NATH MARG, DELHI- 110 054
Dated: 8/3/2001
NOTIFICATION
No. F –(27)/LA/2000 - The following Act of Legislative Assembly received the assent of
the President of India on 6th March 2001 is hereby published for general information:-
THE DELHI ELECTRICITY REFORM ACT, 2000
(DELHI ACT NO. 2 of 2001)
(As passed by the
Legislative Assembly of the National Capital Territory of Delhi
on 23-11-2000)
An
Act
To provide for the constitution of an Electricity Regulatory Commission, restructuring of
the electricity industry (rationalisation of generation, transmission, distribution and
supply of electricity), increasing avenues for participation of private sector in the
electricity industry and generally for taking measures conducive to the development
and management of the electricity industry in an efficient, commercial, economic
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and competitive manner in the National Ca pital Territory of Delhi and for matters
connected therewith or incidental thereto.
BE it enacted by the Legislative Assembly of the National Capital Territory Of Delhi in
the Fifty first year of the Republic Of India as follows:-
PART – I
PRELIMINARY
1. (1) This Act may be called the Delhi Electricity Reform Act, 2000.
(2) It extends to the whole of the National Capital Territory of Delhi excluding the areas
of the New Delhi Municipal Council and the Delhi Cantonment Board.
(3) It shall be deemed to have come into force on 3
rd day on November 2000.:
2. (1) In this Act unless the context otherwise requires
(a) “area of transmission” means the area within which the holder of a
transmissionlicence is for the time being, authorised by licence to transmit energy;
(b) “ Central Act” means the Electricity Regulatory Commissions Act, 1998;
(c) “Commission” means the Delhi Electricit y Regulatory Commission, refer section
3;
(d) “Government” means the Lieutenant Governor referred to in article 239AA, of the
Constitution;
(e) “licence” means a licence granted under Part II or Part II A of the Indian Electricity
Act, 1910 or Part VI of this Act;
(f) “licensee” or “licence holder” means a person licensed under Part II or Part II A of the
Indian Electricity Act, 1910 or under Part VI of this Act to transmit or supply energy;
(g) “Lieutenant Governor” means the Lieute nant Governor of the National Capital
Territory of Delhi appointed by the President under article 239 read with article 239AA
of the Constitution;
(h) “High Court” means High Court of Delhi;
(i) “member or members” means the member or members of the Commission and shall
include the Chairperson of the Commission;
(j) “prescribed’’ means prescribed by the rules or regulations made under this Act;
(k) “regulation” means a regulation made by the Commission under this Act;
(l) “rule’’ means a rule made by the Government under this Act;
(m) “selection committee” means the selection committee referred to in section 4;
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(n) “section” means a section of this Act; and
(o) “transmit” in relation to electricity me ans the transportation or transmission of
electricity by means of a system operated or controlled by a licensee which consists,
wholly or mainly, of extra high voltage an d extra high tension lines and electrical
plant and is used for transforming and for conveying and/or transferring electricity
from a generating station to a sub-station, from one generating station to another or
from one sub-station to another or otherwise from one place to another.
(2) Words and expressions used but not defined in this Act and defined in the
Electricity (Supply) Act, 1948, have the meanings respectively assigned to them in
that Act;
(3) Words and expressions used but not defined either in this Act or in the
Electricity (Supply) Act, 1948 and defined in the Indian Electricity Act, 1910,
have the meanings respectively assigned to them in that Act.
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PART – II
DELHI ELECTRICITY REGULATORY COMMISSION
3.(1) There shall be an Electricity Regulatory Commission for the National Capital Territory
of Delhi to be known as“the Delhi Electricity Regulatory Commission”
(hereinafter referred to as “the Commission”) to exercise the powers
conferred on, and to perform the functions assigned to it under this Act.
(2) The Commission shall cons ist of one or more but not more than three members,
including the Chairperson, to be appointed by the Government in the manner
provided in Section 4, who shall be person or persons, as the case may be, of ability,
integrity and standing with knowledge of , and having shown capacity in, dealing
with problems relating to administration, engineering, finance, commerce
economics, law or management.
Provided that one member shall always be with adequate experience in generation,
transmission or distribution of electricity and, if there are more than one member, the
members shall be persons having expertise in different disciplines.
(3) The Commission established and constituted with one member under section 17 of
the Central Act shall be the first commission for the purposes of this Act and the
member appointed shall be the chairperson of the Commission.
(4) At all times the most senior member of th e Commission shall act as Chairperson, such
seniority being reckoned from the date of the appointment of the members. In case
two or more persons are selected at the sa me time, the seniority amongst them shall
be determined by the Government while making the appointment.
(5) When the Chairperson of the Commission is unable to discharge the functions owing
to absence, illness or any other cause, the next senior member of the Commission
shall discharge the functions of the Chairperson, until the day on which the
Chairperson assumes the charge of his functions.
(6) No act or proceedings of the Commission shall be invalid by reason only of the
existence of any vacancy among its members or any defect in the constitution
thereof.
(7) The Commission shall have an official seal for the authentication of documents
required for the purposes of its functions.
(8) The Commission may by a general or spec ial order in writing and subject to such
conditions as may be specified in the order delegate to any officer of the
Commission such of the administrative powers as the Commission considers
appropriate to aid and assist the work of the Commission.
4. (1) (a) The Government shall constitute a selection committee, as often as
may be required to select persons for appointment as members. The selection
committee shall consist of the following members: -
(i) A Judge of High Court or a form er Judge of High Court – Chairperson
(ii) Chief Secretary of the Government – Member
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(iii) The Chairman of Central Electricity Regulatory Commission Member
(b) The Secretary in charge of the Department of Power of the Go vernment shall act as
the convenor of the selection committee.
(2) The selection committee shall finalise the selection within a period of one month from
the date on which the reference is made to it.
(3) The selection committee shall recommend a panel of two names for every vacancy
referred to it.
(4) All decisions of the selection committee shall be by majority.
(5) The Government shall appoint the member from the two names recommended by
the selection committee.
(6) The method and manner of selection an d appointment of members and designation
of one of the members as Chairperson shall be as prescribed by the Government
from time to time by the rules.
5(1) The persons who are considered for appointment as members of the Commission shall
notify to the convenor of the selection committee –
(a) of any office, employment or consulta ncy agreement or arrangement which he has
in his own name or in any firm, association or person or body corporate, or in the
names of any relatives, carrying on any of the following businesses:-
(i) generation, transmission, distribution or supply of electricity;
(ii) manufacture, sale or supply of any fuel for generation of electricity;
(iii) manufacture, sale, lease, hire or otherwise supply of, or dealing in, machinery,plant,
equipment, apparatus or fittings for generation, transmission, distribution supply or use
of electricity; and
(iv) any entity providing professional services to any of the businesses referred to in sub-
clauses (i), (ii) and (iii) above and any other business which is notified by the
Government on a later date taking into consideration the scope of work of the
Commission;
(b) such other details and information as may be prescribed in the rules.
Explanation:- For the purpose of this sub-section, the term “relative” shall have the same
meaning as defined under section 6 of the Companies Act, 1956.
(2) The details received from the persons shall be placed for consideration of the
selection committee at the time of the sele ction and recommendation of the person
for appointment as member.
(3) Each member of the Commission shall, before taking charge of the office as member
or within such time not exceeding three months after taking charge as may be
allowed by the Government on the recommendation of the selection committee,
divest himself from the interest in the businesses mentioned in sub-section (1) as a
condition of his appointment.
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(4) If a person to be appointed as a member of the Commission holds any office under
the Government of India or the Government of any State or the Government of any
Union territory he shall submit his resignation or take voluntary retirement from that
service and shall not seek reappointment in the service of the Government or any
Government, corporation or private body, dealing with the power sector for a period
of two years after he ceases to be member of the Commission.
(5) So long as the person holds the office of the member and for a period of two years
after he ceases to be a member for any reason whatsoever, he shall not acquire,
hold or maintain, directly or indirectly , any office, employment or consultancy
arrangement or interest in businesses mentioned in sub-section (1) and if he acquires
any such interest involuntarily or by way of succession or testamentary disposition, he
w i l l d i v e s t h i m s e l f o f s u c h i n t e r e s t w i t h i n a p e r i o d o f t h r e e m o n t h s o f s u c h i n t e r e s t
being acquired.
(6) Before recommending any person as a member of the Commission, the selection
committee shall satisfy itself that the pers on does not have any financial or other
interest as referred to in sub-section (1) or otherwise which is likely to affect
prejudicially his functions as a member.
(7) A person shall be disqualified from being appointed as member of the Commission if
h e i s a m e m b e r o f P a r l i a m e n t o r o f th e L egislative Assembly of any State or of the
Legislative Assembly of any Union Territory or of any local authority or holds any post
in a political party.
6. (1) Every member shall hold office for a period of five years from the date of
his appointment as member or until the age of sixty-five years, whichever is earlier,
and he shall not be eligible for re-appointmen t at any time after the expiry of his
term of appointment
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Provided that no person shall be appointe d as a member after he attains the age of
sixty-two years.
(2) The Chairperson of the Commission and other members shall receive such
remunerations and other allowances and shall be governed by such conditions of
service as may be prescribed from time to time under the rules.
Provided that the terms shall not be varied to their disadvantage during the tenure of
the appointment.
(3) The Chairperson of the Commission and every other member shall, before entering
upon his office, make and subscribe to an oath of the office and of secrecy in such
form, in such manner and before such authority as may be prescribed.
7. (1) Subject to the provisions of sub-section (3), any member of the
Commission shall only be removed from his office by order of the Lieutenant
Governor on the ground of proved misbehav iour after the High Court, on reference
being made to it by the Lieutenant Governor, has, on inquiry held in accordance
with the procedure prescribed in that behalf by the High Court, reported that the
member ought on any such ground to be removed.
(2) The Lieutenant Governor may suspend any member of the Commission in respect of
whom a reference has been made to the Hi gh Court under sub-section (1) until the
Lieutenant Governor has passed orders on the receipt of the report of the High Court
on such reference.
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3) Notwithstanding anything contained in sub- section (1), the Lieutenant Governor may,
by order, remove from office the member if he –
has been adjudged an insolvent; or
has been convicted of an offence which, in the opinion of the Government, involves
moral turpitude; or
has become physically or mentally incapable of acting as a member; or
has acquired such financial or other interest as is likely to affect prejudicially his
functions as a member; or
has so abused his position as to render his continuance in office prejudicial to the
public interest; or
has without reasonable cause refused or fa iled to act for a period of atleast six
months; or
ceases to fulfill any of the conditions of his appointment as member.
(4) Notwithstanding anything contained in su b-section (3), no member shall be removed
from his office on the ground specified in clause (d) or in clause (e) of that sub-
section unless the High Court on a reference being made to it in this behalf by the
Lieutenant Governor, has, on an inquiry held by it in accordance with such
procedure as prescribed in this behalf by the High Court, reported that the member
ought on such ground or grounds to be removed.
(5) The Government shall act in accordance with the recommendation in the final
report under sub-section (4) and the Govern ment shall communicate its decision to
the member concerned within a period of two months of the receipt of such report.
(6) A member who has been removed shall not be eligible for re-appointment as a
member or in any other capacity in the Commission or in the Government or in any
Government undertakings.
(7) If the member removed under this section is the Chairperson of the Commission, he
shall cease to be the Chairperson of the Commission.
(8) Nothing contained in this section shall be construed to exclude the jurisdiction of the
Lokayukta and Uplokayukta.
8. (1) The Commission, in consultation with the Government, shall appoint a
person as Secretary of the Commission to assi st the Commission to discharge its
functions.
(2) The Commission may, in consultation with the Government, determine the number,
nature and categories of other officers and employees required to assist the
Commission in the discharge of its functions.
(3) The method and manner of selection of th e Secretary, officers and other employees
and the terms and conditions of their serv ice may be prescribed by the Commission
by regulations in consultation with the Government.
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(4) The salaries and allowances payable to the members and the administrative
expenses, including salaries, allowances and pensions payable to or in respect of the
Secretary, officers and other employees of the Commission, shall be charged to the
Consolidated Fund of the National Capital Territory of Delhi.
(5) The Commission may appoint consultants from time to time to assist the Commission
in the discharge of its functions.
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PART – III
PROCEEDINGS, POWERS AND FUNCTIONS OF THE COMMISSION
9. (1) The headquarters of the Commission shall be at Delhi.
(2) The Commission may, by notification in the official Gazette, make regulations not
inconsistent with this Act and the rules made thereunder for discharging its functions.
(3) All decisions of the Commission shall be on the basis of majo rity of the members
present and voting. In case of a difference of opinion among the members of the
Commission, the opinion of the majority shall prevail and the opinion of the
Commission shall be expressed in terms of the views of the majority. Each member of
the Commission shall have one vote only. The Chairperson shall have no casting or
second vote.
(4) If there are more than one member in the Commission, the quorum for any meeting
of the Commission shall be two members.
Provided that for a meeting of the Commission to review any previous decision taken
by the Commission or for consideration of any issue which could not be decided on
account of equality of votes in favour of and against the resolution proposed, the
quorum for the meeting shall be all members present.
(5) (a) The Chairperson may instruct the Secretary to call a meeting of the
Commission to be held at such time as the Chairperson may direct.
(b) Any member of the Commission may, subject to the consent of the Chairperson,
requisition a meeting of the Commission at an y time by sending a notice in writing to
the other members with a copy to the Secretary.
( 6 ) T h e C o m m i s s i o n s h a l l b e e n t i t l e d t o d e c i d e u r g e n t m a t t e r s b y c i r c u l a t i o n o f t h e
papers to members.
(7) All decisions, directions and orders of th e Commission shall be in writing and shall be
supported by reasons. The decisions directions and orders of the Commission shall be
available for inspection by any person and copies of the same shall also be made
available in such a manner as the Commission may prescribe.
10. (1) The Commission shall, for the purposes of any inquiry or proceedings under
this Act have the powers as are vested in a Civil Court under the Code of Civil
Procedures, 1908, while trying a suit in respect of the following matters, namely: -
(a) the summoning and enforcing of attendance of any witness and examining on oath;
(b) the discovery and production of any docume nt or other material object producible
as evidence;
(c) the reception of evidence on affidavit;
(d) the requisition of any public record from any court or office;
(e) the issue of commission for examination of witnesses;
(f) the appearance of parties and consequences of non-appearance;
(g) the grant of adjournments at the hearing; and
(h) any other matter which may be prescribed.
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(2) The Commission shall have the power to require any person –
(a) to produce before it and allowed to be examined and kept by an officer of the
Commission specified in this behalf, such b ooks, accounts, or other documents in the
custody or under the control of the person so required as may be specified or
described in the requisition, being documents relating to any matter concerning the
generation, transmission, distribution and supply or use of electricity, the functioning
of any undertaking involved in the abov e areas and other matters, the examination
of which the Commission considers is necess ary or relevant for the purposes of this
Act or for the discharge of the functions of the Commission under this Act; and
(b) to furnish to an officer so specified, such information as may be required for the
purposes of this Act or such other information as may be in his possession in relation to
any activity carried on by any other person.
(3) For the purpose of enforcing the attendance of witnesses, the local limits of the
jurisdiction of the Commission shall be the limits of the territory of India.
(4) The Commission shall have the powers to make such interim orders in any
proceedings, or hearing before the Co mmission, as the Commission considers
appropriate.
(5) Where, during any inquiry or proceeding s under this Act, the Commission has any
grounds to believe that any books or papers or documents of, or relating to, any
u n i t o r p e r s o n i n r e l a t i o n t o w h i c h s u c h i n q u i r y i s b e i n g m a d e o r p r o c e e d i n g
relates, which the owner of such unit or person ma y be required to produce insuch
inquiry or proceeding, are being or may be destroyed, mutilated, altered,falsified or
secreted, it may, by a written order, au thorize any officer of the Commission to
exercise the powers of entry, search and seizure as may be exercised by an
inspector appointed for inspection under sections 240 and 240-A of the Companies
Act, 1956.
(6) Notwithstanding anything contained in any other law for the time being in force, the
Commission may, by a general or special order, call upon any person including the
generating companies or the licensees to furnish to the Commission, periodically or
as and when required, any in formation concerned with the activities carried on by
such person related to generation, transmi ssion, distribution and supply or use of
electricity, the connection between such person and any other person or
undertaking including such other information related to the organisation, business,
cost of production, conducts, etc. as may be prescribed to enable the Commission
to carry out its functions under this Act.
(7) In the discharge of its functions, the Commi ssion shall be entitled to and shall consult
to the extent the Commission considers appropriate from time to time such person or
group of persons as may be a ffected or are likely to be affected by the decisions of
the Commission.
(8) The Commission may, at any time, call for an d examine, information, details, books,
accounts and other documents from any person including a generating company or
a licensee for the purposes of providing the same to the Central Electricity Authority,
the Central Electricity Regulatory Commission, the Central Government or the
Government if so required by them under any law for the time being in force.
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(9) Every person to whom notices may be issu ed under this Act shall be obliged to duly,
faithfully and expeditiously furnish such information, details, books, accounts and
other documents, as may be specified in the notice by the Commission.
(10) Notwithstanding anything contained in sections 12 to 16 (both inclusive) and sections 18
and 19 of the Indian Electricity Act, 1910, for the placing of the electric supply lines
appliance and apparatus for transmission, distribution and supply of energy, the
Commission may, by order in writing, confer upon licensees or any other person
engaged in the business of transmission, distribution or supply of energy to the
public under this Act, subject to such conditions and restrictions as
theCommission may prescribe, any of the powers which the telegraph authority
possesses under the Indian Telegraph Act 1985 with respect to placing of telegraph lines
and post.
11. (1) The Commission shall discharge the following functions, namely :-
(a) to determine the tariff for electricity, wholesale, bulk, grid or retail, as the case may
be;
(b) to determine the tariff payable for the use of the transmission facilities;
(c) to regulate power purchase and proc urement process of the licensees and
transmission utilities including the price at which the power shall be procured from the
generating companies, generating stations or from other sources for transmission,
sale, distribution and supply in the National Capital Territory of Delhi;
(d) to promote competition, efficiency and econ omy in the activities of the electricity
industry to achieve the objects and purposes of this Act;
(e) to aid and advise the Government in ma tters concerning electricity generation,
transmission, distribution and supply in the National Capital Territory of Delhi;
(f) to regulate the operation of the power system within the National Capital Territory of
Delhi;
(g) to set standards for the electricity industry in the National Capital Territory of Delhi
including standards related to quality, continuity and reliability of service;
(h) to promote competitiveness and make avenues for participation of private sector in
the electricity industry in the National Capital Territory of Delhi and also to ensure a
fair deal to the customers;
(i) to aid and advise the Government in the formulation of its power policy;
(j) to collect and publish data and forecasts on the demand for, and use of, electricity
in the National Capital Territory of Delhi and to require the licensees to collect and
publish such data;
(k) to regulate the assets, properties and interest in properties concerned or related to
the electricity industry in the National Capital Territory of Delhi including the
conditions governing entry into, and exit from the electricity industry in such manner
as to safeguard the public interest;
(l) to issue licences for transmissi on, bulk supply, distribution or supply of electricity and
determine the conditions to be included in the licences;
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(m) to regulate the working of the licensees and other persons authorised or permitted to
engage in the electricity industry in the National Capital Territory of Delhi and to
promote their working in an efficient, economical and equitable manner;
(n) to require licensees to formulate prospective plans and schemes in co-ordination
with others for the promotion of generati on, transmission, distribution, supply and
utilisation of electricity, quality of service and to devise proper power purchase and
procurement process;
(o) to adjudicate upon the disputes and d ifferences between the licensees and/or
transmission utilities and to refer the matter for arbitration;
(p) to aid and advise the Government on an y other matter referred to the Commission
by the Government.
(2) The Commission shall always act consiste nt with the objectives and purposes for
which the Commission has been establis hed as an independent statutory body
corporate and all acts, decisions an d orders of the Commission shall be pursuant to
and shall seek to achieve such objectives and purposes.
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PART-IV
POWERS OF THE GOVERNMENT
12. (1) In the discharge of its functions, the Comm ission shall be guided by such directions in
matters of policy involving public interest as the Government may issue from time to
time.
(2) If any question arises as to whether any such direction relates to a matter of policy
involving public interest, the decision of the Government thereon shall be final.
(3) The Government shall be entitled to issue policy directions concerning any subsidy to
be allowed for supply of electricity or any ot her infrastructure services to any class or
classes of persons.
Provided that the Government shall contribute an amount to compensate the Board
or any company affected to the extent of the subsidy granted.
The Commission shall determine such amounts, the terms and conditions on which
and the time within which such amounts are to be paid by the Government.
(4) The Government shall consult the Commission in relation to any proposed legislation
or rules concerning any policy direction and may take into account the
recommendations made by the Commission.
13. The Government may, if so required to do by the Central Government,
authorise the Commission to discharge th e functions of Electricity Regulatory
Commission in respect of any other Union territory.
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PART – V
REORGANISATION OF ELECTRICITY INDUSTRY
14. (1) The government may, as soon as may be after the commencement
of this Act, cause one or more companies to be incorporated and set up under
the provisions of the Companies Act, 1956 for the purpose of generation, transmissionor
distribution of electricity, including companies engaged in more than one of the said
activities, in the National Capital Territory of Delhi and may transfer the existing
generating stations or the transmission system or distribution system, or any part of
the transmission system or distribution system, to such company or companies.
(2) T he Government may designate any company set up under sub-section (1) to be the
principal company to undertake all plan ning and coordination in regard to
generation or transmission or both; and such company shall undertake works
connected with generation or transmission and determine the requirements of the
territory in consultation with the othe r companies engaged in generation or
transmission for the National Capital Territory of Delhi, the Commission, the Regional
Electricity Board and the Central Electricit y Authority and any other authority under
any law in force for the time being, or any other Government concerned.
(3) The companies incorporated and set up under sub-section (1) shall undertake the
functions specified in this section and such other functions as may be assigned to
them by the Government.
(4) Subject to the provisions of this Act and of the duties and functions assigned to the
companies incorporated and set up un der sub-section (1), other companies
engaged in generation, transmission or distribution of electricity, or more than one of
the said activities, may be incorporated and set up in the National Capital Territory of
Delhi.
(5) The Government may, in consultation with the Commission, determine the lines that
shall be treated as transmission or distribu tion lines for the purpose of division of
responsibilities between the companies incorporated and set up under this section,
having regard to the voltage levels of such lines and any other factor, which it may
consider relevant.
(6) The Government may convert the companies set up under this Act to joint venture
companies through a process of disinvestm ent, in accordance with the transfer
scheme prepared under the provisions of this Act.
(7) Upon the transfer of all functions of the Board to corporate entities in terms of this
Part, the Government may appoint an admini strator for the purpose of finalisation of
the accounts of the Board for all the pending years till the date of such transfer and
thereafter for winding up the Board in such manner as the Government may direct.
15. (1) With effect from the date on which a transfer scheme prepared by the
Government to give effect to the objects and purposes of this Act, is published or
such further date as may be specified by the Government (hereinafter referred to as
“the effective date”), any property, interest in property, rights and , liabilities which
immediately before the effective date belonged to the Board shall vest in the
Government.
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(2) The Government may transfer such property, interest in property, rights and liabilities
to any company or companies establishe d under section 14 for the purpose in
accordance with the transfer scheme prepared therefore.
(3) Such of the rights and power to be exercised by the Board under the Electricity (Supply)
Act, 1948, as the Government may, by notification in the official Gazette, specify, shall
be exercisable by a company or companie s established as the case may be, under
section 14, for the purpose of discharge of the functions and duties with which it is
entrusted.
(4) Notwithstanding anything contained in this section or any other Act, where: -
(a) the transfer scheme involves the transfer of any property or rights to any person or
undertaking not wholly owned by the Government, the scheme shall give effect to
the transfer only after asset valuation; and
(b) where any transaction of any description is effected in pursuance of a transfer
scheme, it shall be binding on all persons in cluding third parties, even if such persons
have not consented to it.
(5) The Government may require any transmit ting or distributing company established
under the provisions of sub-section (1) of section 14 (hereinafter referred to as "the
transferor licensee") or any generating company to draw up a transfer scheme to
vest in a further licensee or licensees (the "transferee licensee or licensees"), or any
generating company, any property, interest in property, rights and liabilities which
have been vested in the transferor licensee or generating company, as the case
may be, under this section and publish the same in the official Gazette. The transfer
scheme to be notified under this sub-section shall have the same effect as a transfer
scheme under sub-section (2).
(6)A transfer scheme may-
(a) provide for the formation of subsidiaries, joint venture companies or other schemes of
division, amalgamation, merger, reconstruction or arrangements;
(b) define the property, interest in property, rights and liabilities to be allocated-
(i) by specifying or describing the property, rights and liabilities in question,
(ii) by referring to all the property, interest in property, rights and liabilities comprised
in a specified part of the transferor's under-taking, or
(iii) partly in one way and partly in the other :
Provided that the property, interest in property, rights and liabilities shall be subject to
such further transfer as the Government may specify;
(c) provide that any rights or liabilities sp ecified or described in the scheme shall be
enforceable by or against the transferor or the transferee;
(d) impose on any licensee an obligation to enter into such written agreements with, or
execute such other instruments in favour of any other subsequent licensee as may be
specified in the scheme;
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(e) make such supplemental, incidental and consequential provisions as the transferor
licensee considers appropriate including pr ovision specifying the order in which any
transfer or transaction is to be regarded as taking effect;
(f) provide that the transfer shall be provisional subject to the provisions of section 18.
(7) All debts and obligations incurred, all contracts entered into and all matters and
things done by, with or for the Board, or a company or companies established as the
case may be, under section 14 or generating company or distribution company or
companies before a transfer scheme becomes effective shall, to the extent specified
in the relevant transfer scheme, be deemed to have been incurred, entered into or
done by, with or for the Government or the transferee and all suits or other legal
proceedings instituted by or against the Board or transferor, as the case may be,
continued or instituted by or against the Government or concerned transferee, as
the case may be.
(8) In the event a licensee is required to vest any part of its undertakings in another licensee
pursuant to sub-section (5), the Government shall amend the transferee licence in
accordance with section 24 or revoke its licence in accordance with section 23.
(9) The Board shall cease to exist with the tr ansfer of functions and duties specified and
with the transfer of assets as on the effective date.
(10) The exercise by a licensee of any of Board’s rights and powers may be
made on such conditions as shall be sp ecified in the transfer scheme including a
condition that such rights and powers shall be exercised by the licensee only with the
approval of the Commission/Government.
16. (1) The Government may by a transfer scheme provide for the transfer of the
personnel from the Board to a company or companies established as the case may
be, under section 14 and distribution co mpanies ('hereinafter referred to as
"transferee company or companies") on the vesting of properties, rights and liabilities
in a company or companies established, as the case may be, under section 14 or
the distribution companies.
(2) Upon such transfers the personnel shall hold office in the transferee company on
terms and conditions that may be specified in the transfer scheme subject, however,
to the following, namely:-
(a) that the terms and conditions of the se rvice applicable to them in the transferee
company shall not in any way, be less favourab le than or inferior to those applicable
to them immediately before the transfer;
(b) that the personnel shall have continuity of service in all respects; and
c) that the benefits of service accrued befo re the transfer shall be fully recognised and
taken in account for all purposes includ ing the payment of any and all terminal
benefits.
17. Notwithstanding anything contained in the Industrial Disputes Act, 1947 or any other
law as is applicable and except for the provisions made in this Act, the transfer of the
employment of the personnel referred to in section 16 shall not entitle such
employees to any compensation or damages under this Act, or any other law or
under the general law, save as provided in the transfer scheme.
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18. (1) The Government may provide that the transfers in terms of sections 15 and
16 shall be provisional for a period of twelve months from the effective date unless
confirmed earlier and reserve the right to alter, vary, modify, add or otherwise change
the terms in such manner as the Government may consider appropriate.
(2) At any time before the end of the period of twelve months commencing on the effective
date, a company or companies established as the case may be, under section 14 or
generating company or distribution company or companies, as the case may be, to
whom property, interest in property, rights, liabilities and personnel have been transferred,
may, with the consent of the Government draw up a transfer scheme to vest some or all
the property, rights, liabilities and personnel in another licensee, or generating company
subject to the consent of such other licensee or generating company to such vesting and
any such transfer scheme shall take effect as if it were a transfer scheme under section 15.
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PART – VI
LICENSING OF TRANSMISSION AND SUPPLY
19. (1) No person, other than those authorised to do so by licence or by virtue of
exemption under this Act or authorised to or exempted by any other authority under
the Indian Electricity Act, 1910 and the El ectricity (Supply) Act, 1948, shall engage
in the National Capital Territory of Delhi in the business of :-
(a) transmitting electricity; or
(b) supplying electricity including bulk supply.
(2) Where any difference or dispute arises as to whether any person is or is not engaged
or about to engage in the business of transmitting or supplying electricity as
described in sub-section (1), the matter shall be referred to the Commission and the
decision of the Commission shall be final.
(3) The Commission shall have the power to order any unlicensed person to cease
operation and disconnect its apparatus.
20. (1) The Commission may, on an app lication made in such form and on
payment of such fee, if any, as it may prescribe, grant a licence authorising any
person to –
(a) transmit electricity in a specified area of transmission; or
(b) supply electricity in a specified area of supply including bulk supply to licensees or
any person.
(2) In respect of the grant of any such lice nce, the following provisions shall apply –
(a) any person applying for a licence shall publish a notice of his application in such manner,
and with such particulars as may be prescribed by the Commission within fourteen days
after making such application;
(b) the Commission shall not grant a licence until-
(i) all objections received relating to the application for the licence have been
considered by the Commission.
Provided that no objection shall be considered by the Commission unless it is received
within three months of the date of the first publication of the notice under clause (a)
above or if the Commission may, at any time prescribe a new time limit for filing
objection; and
(ii) in the case of an application for a licence to supply or transmit in an area which includes 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 Central Government for defence purposes,
the Commission has ascertained that there is no objection to the grant of the licence on the
part of the Central Government.
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(c) where an objection is received from any local authority concerned, the Commission
shall, if in its opinion the objection is insufficient, record in writing and communicate to
such local authority its reasons for such opinion; and
(d) no application for a licence shall be made by any local authority except
pursuant to a resolution passed at a meeting of such authority held after one month’s
previous notice of the same specifying th e purpose thereof, has been given in the
manner in which notices of meetings of such local authority are usually given.
(3) A licence may prescribe the duration, exte nt to which, and the terms and conditions
under which the transmission or supply of energy is to be made and contain such other
conditions as the Commission may consider appropriate for achieving the purposes of
this Act.
(4) Without prejudice to the generality of sub-section (3), conditions included in a
licence by virtue of that sub-section may require the licensee to –
(a) enter into agreements on specified terms with other persons for the use of any
electric lines, electrical plant(s) and associated equipment operated by the licensee;
(b) comply with any direction given by the Commission;
(c) act in accordance with the terms of the licence;
(d) refer all disputes arising under the licence for determination by the Commission;
(e) furnish information, documents and details which the Commission may require for its own
purpose or for the purposes of the Central Government or the Government or Central
Electricity Authority or Central Electricity Regulatory Commission.
(f) comply with the requirements of the Indian Electricity Act, 1910 and the Electricity
(Supply) Act, 1948 or the rules framed thereunder in so far as they are applicable;
(g) undertake such functions and obligations of the Delhi Vidyut Board under the Indian
Electricity Act, 1910 and the Electricity (Supply) Act, 1948 as the Commission
may prescribe;
(h) obtain the approval of the Commission of such things that are required
under the licence conditions or for deviation from the same;
(i) notify the Commission of any scheme that he proposes to undertake
including the schemes in terms of the provisions of the Electricity (Supply) Act, 1948.
(j) purchase of the power in an economical manner and under a transparent power
purchase procurement process; and
(k) supply in bulk to other licensees or to customers.
(5) Without prejudice to the generality of sub-section (3), conditions included in a
licence granted by the Commission may require the holder of such a licence to
establish a tariff or to calculate its charges from time to time in accordance with the
requirements prescribed by the Commission.
(6) The provisions contained in the Schedule to the Indian Electricity Act, 1910 shall be
deemed to be incorporated with, and to form part of, every supply licence granted
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under this Part save in so far as they are expressly varied or excepted by the supply
licence and shall, subject to any such addi tions, variations or exceptions which the
Commission is empowered to make having regard to the purposes of this Act, apply
to the undertaking authorised by the licence in relation to its activities in the National
Capital Territory of Delhi:
Provided that where a supply licence is granted by the Commission for the supply of
energy to other licensees for distribution by them, then in so far as such licence
relates to such supply, the provisions of clau ses IV, V, VI, VII, VIII and XII of the said
Schedule shall not be deemed to be incorporated within the supply licence.
(7) The conditions included in a licence may contain provision for the conditions to
cease to have effect or be modified at su ch times, in such manner and in such
circumstances as may be specified in or determined by or under the conditions.
(8) Any provision included by virtue of sub-section (7) above in a licence shall have effect in
addition to the provision made by sub-section (5) of section 23 and section 24 of this Act
with respect to the amenExcerpt shown. Open the full act in Lexace.