ELECTRICITY SUPPLY ACT, 1948
(1) 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 sections 2, 3, 4, 4A, 4B, 4C, 15A, 18A, 26A, 28 to 34 (both inclusive), sub-section (2) of section 39, section 42, sub-section (3) of section 43 and sections 57, 57A, 57B, 58, 75A, 76, 77, 77A, 77B, 77C, 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 the sections, Schedule and Table mentioned in sub-section (3), as the State Government may, by notification in the Official Gazette, appoint:
Provided that the C
In this Act, unless there is anything repugnant in the subject or context,—
(1) “Authority” means the Central Electricity Authority constituted under section 3;
(2) “Board” means a State Electricity Board constituted under section 5;
(3) “bulk-licensee” means a licensee who is authorized by his license to supply electricity to other licensees for distribution by them;
1[(3A) “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 stat
(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 rela
(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.]
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1. Section 4A ins. by Act 115 of 1976, sec. 6 (w.r.e.f. 8-10-1976).
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[or 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 times and in such form and manner as it may direct.
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1. Subs. by Act 115 of 1976, sec. 5, for “State Electricity Board” (w.r.e.f. 8-10-1976).
2. Ins. by Act 115 of 1976, sec. 5, (w.r.e.f. 8-10-1976).
3. Subs. by Act 115 of 1976, sec. 5, for “and returns”
(1) 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 powers, 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 section 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 (4A) and sub-section (4B) of section 3;
&
2[(1)] The Authority may 3[by notification in the Official Gazette,] make regulations, not inconsistent with the provisions of this Act and the rules made by the Central Government thereunder, to provide for all or any of the following matters, namely:—
(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 after it is made, before each House of Parliament, while it is in session, for a t
(1) The State Government shall, as soon as may be after the issue of the notification under sub-section (4) of section 1, constitute by notification in the Official Gazette a State Electricity Board under such name as shall be specified in the notification.
(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 fi
(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 section 1, in lieu of constituting a Board under section 5 enter into an agreement with the Government of a contiguous State to provide that the Board constituted for the latter State shall exercise the functions of a Board under this Act in the former State.
(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 Government 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—
&nb
Where an agreement is entered into under section 6, the participating State Governments shall, by notification in the Official Gazette, declare a date on which the agreement shall come into force, and on and after that date—
(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) reference 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—
&nbs
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.]
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1. Subs. by Act 57 of 1949, sec. 5, for section 8.
(1) A member of the Board shall, prior to his appointment, give to the State Government intimation of, and shall, before taking charge of his office, sell or divest himself of, any interest which he may have for his own benefit whether in his own name or otherwise, in any firm or company carrying on the business of supplying electricity or any fuel for the generation of electricity, or of the manufacture, sale or hire of machinery, plant, equipment, apparatus or fittings for the generation, transmission, distribution or use of electricity, or any interest in the managing agency or shares or securities of any such company; and it shall not be lawful for a member of the Board, so long as he holds office, to acquire or purchase any such interest in any such firm or company and if he, under any will or by succession or gift becomes entitled for his own benefit to any such interest, he shall sell the same within three months after
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 section 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 abu
Section 10 of the Electricity Supply Act, 1948, governs the removal, suspension, and disciplinary actions against members and officers of electricity boards or corporations. It provides a statutory framework for administrative actions, including removal for misconduct or unfitness, while balancing principles of natural justice and statutory authority.
Section 10 empowers the appropriate authority (usually the State Government or the appointing authority) to:- Remove or dismiss members or officers of the Board/Corporation, including part-time or full-time members, for misconduct, unfitness, or other specified reasons.- Suspend members or officers pending inquiry or decision.- Exercise such powers with or without prior notice, depending on the circumstances.- In certain cases, require reasons to be recorded and a speaking order to be issued.
This concise commentary underscores that while Section 10 grants wide powers for disciplinary action, courts consistently emphasize the importance of fair procedure, recording reasons, and exercising powers reasonably to prevent arbitrariness and uphold constitutional safeguards.
—If the Chairman or any other member of the Board is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of this appointment, the State Government may appoint another person to officiate for him and carry out his functions under this Act or any rule or regulation made thereunder.
The Board shall be a body corporate by the name notified under sub-section (1) of section 5, having perpetual succession and a common seal, with power to acquire and hold property both movable and immovable, and shall by the said name sue and be sued.
(1) The State Government may, if it consider expedient so to do, by notification in the Official Gazette, direct that the Board shall, with effect from such date as may be specified in the notification, be a body corporate with such capital, not exceeding ten crores of rupees, as the State Government may specify from time to time.
(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
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.
(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.
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.]
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1. Subs. by Act 23 of 1978, sec. 5, for “servants” (w.e.f. 3-6-1978).
2. Ins. by Act 101 of 1956, sec. 7 (w.e.f. 30-12-1956).
3[***]
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 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[***]
(5) A full-time member of the Board of Directors of a Generating Company shall b
(1) The State Government shall constitute a 1 [State Electricity Consultative Council] for the State, and in cases to which sections 6 and 7 apply, the State Governments concerned shall constitute such one or more 1 [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 2 [the members of the Board and, if there are any Generating Company or Generating Companies operating in the State, one representative of the Generating Company or each of the Generating Companies, to be nominated by the Generating Company concerned,] and such other persons being not less than 3 [eight] and not more than fifteen as the State Government or the State Governments concerned may appoint after consultation with such representatives or bodies representative of the following interests as
(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 regulations 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
(1) Subject to the provisions of this Act, a Generating Company shall be charged with the following duties, namely:—
(a) to establish, operate and maintain such generating stations and tie-lines, sub-stations and main transmission lines connected therewith, as may be required to be established by the 2[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 2[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 t
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 or 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 S
(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
(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 instal, 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, i
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.]
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1. Section 20A ins. by Act 44 of 1962, sec. 2 (w.e.f. 28-11-1962) and again subs. by Act 115 of 1976, sec. 12, (w.r.e.f. 8-10-1976).
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 organise and carry out power and hydrometric survey work and cause to be made such maps, plans, sections and estimates as are necessary for any of the said purposes 3[and in such manner as the Authority may, from time to time, specify]:
Provided that where any such measures relate to a source of water-power already operated upon by a licensee under a licence, the Board shall give the licensee notice of such measure and an opportunity to be heard on any representations he may desire to make in that behalf and may consider such representation.
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.
(1) Subject to any regulations made in this behalf, the Board may grant loans or advances to any licensee for the purposes of his undertaking on such terms as the Board thinks proper.
(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 giving the licensee six months’ notice is writing, purchase his undertaking.
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1. The wor
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 interests 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.
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.
1[The Board or a Generating Company] shall have such further powers and duties as are provided in this Act.
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1. Subs. by Act 115 of 1976, sec. 15, for “The Board” (w.r.e.f. 8-10-1976).
(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, sub-stations or transmission lines, as are referred to in clause (e) of section 18 or clause (c) of sub-section (1) of section 18A, as the case may be.
(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 may subsequently be sanctioned in respect of any other part of that area:
Provided that where the scheme is of the nature referred to in sub-section (1) of section 29, the scheme shall
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 therefrom, to be published in the Official Gazette of the State concerned and in such local newspapers as the Board or the Generating Company may consider necessary along with a notice of the date, not being less than two months after t
1[The Authority shall, before concurring in any scheme submitted to it under sub-section (1) of section 29, have particular regard to, whether or not in its opinion—].
(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 hydro-electric and thermo-electric power necessary to secure the greatest possible economic output o
—(1) Where a scheme is submitted to the Authority under sub-section (1) of section 29, the Authority may, having regard to the matters referred to in section 30, either concur in the scheme without modification or require the Board or, as the case may be, the Generating Company to modify the scheme in such manner as the Authority specifies in the requisition so as to ensure that the scheme conforms to the national power policy evolved by the Authority in pursuance of the provisions contained in clause (i) of sub-section (1) of section 3 and in either case the Authority shall also communicate its decision to the State Government or State Governments concerned:
Provided that where the scheme was submitted for concurrence by a Generating Company in relation to which the Central Government is the 2[competent government or one of the competent governments], the decision shall be communi
The Board or, as the case may be, the Generating Company may, from time to time, alter or extend a scheme by a supplementary scheme prepared in the manner specified in section 31:
Provided that any alterations or extensions of a scheme which are, in the opinion of the Board or, as the case may be, the Generating Company, minor in character may be made without preparing a supplementary scheme:
Provided further that where any alteration or extension of the nature referred to in the first proviso is made in respect of a scheme concurred in by the Authority, details of such alteration or extension shall be intimated to the Authority as soon as may be after such alteration or extension is made.
The provisions of sections 28 to 32 (both inclusive) shall, so far as may be, apply also in relation to a scheme prepared by a State Government for the generation, transmission or distribution of electricity.]
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 section 47, be regulated by the provisions of the First Schedule.
2[(2) Notwithstanding anything contained in this Act or any scheme made thereunder, no generating station owned by a Generating Company shall be designated as a controlled station.]
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1. Section 34 re-numbered as sub-section (1) thereof by Act 115 of 1976, sec. 20 (w.r.e.f. 8-10-1976).
2. Ins. by Act 115 of 1976, sec. 20 (w.r.e.f. 8-10-1976).
The Board may at any time declare to a licensee owning a generating station, other than a controlled station, situate within an area for which a scheme is in force that it is ready to make a supply of electricity available to the licensee for the purposes of his undertaking, and thereupon, but without prejudice to the provisions of section 47, the provisions of the Second Schedule shall apply in respect of the relations between the Board and the said licensee.
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 section 47, where the station is a controlled station the provisions of Part III of the First Schedule, or in other cases the provisions of the Third Schedule, shall apply in respect of the relations between the Board and the said licensee with reference to the station to be closed down.
(1) 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 undert
[Rep. by the Electricity (Supply) Amendment Act, 1976 (115 of 1976), sec. 21 (w.r.e.f. 8-10-1976).]
1[(1)] Where the Board itself establishes a new generating station or acquires a generating station otherwise than for the purpose of closing it down, it shall operate the station itself, but the Board may with the sanction of the State Government make arrangements with any licensee or other person for its operation, if in the opinion of the Board it is desirable so to do.
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 governme
—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 section 76.
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1. Ins. by Act 30 of 1966, sec. 10 (w.e.f. 16-9-1966).
(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 intra-State transmission system may 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 Util
Legal Comments- "Introduction" - This commentary surveys Section 41 of the Electricity (Supply) Act, 1948 in the context of allied statutes and case-law cited, focusing on authorization to use transmission lines and related duties of licensees, with reference to pre- and post-1948 legal framework and reforms acts. [Sources: ["Municipal Corporation for Greater Bombay and another, Appellants v. M/s. Devidayal Metal Industries and another, Respondents. And Piem Hotels Ltd. and Indian Hotels VS Municipal Corporation of Greater Bombay - 1983 0 Supreme(Bom) 200"] ]- "What Section Says" - Section 41 authorizes use of transmission lines by the Government, Central or State Transmission Utilities, or licensees, for the purposes of inter- or intra-state transmission, subject to statutory read-ins or modifications; it contemplates agreements for exclusive use and charges for such use. [Source: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"] ]- "Essential ingredients" - Key elements include: (i) authority to use transmission lines; (ii) potential for exclusive-use agreements; (iii) payment of charges; (iv) applicability of Sek. 41 in light of related sections (e.g., 49, 59, 26) and transitional provisions in reforms acts; (v) interplay with General Clauses Act principles on modification/withdrawal of notifications. [Sources: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"], ["KARTICK CHANDRA GHOSH VS WEST BENGAL STATE ELECTRICITY BOARD - 2000 0 Supreme(Cal) 225"], ["S. K. M. FABRICS VS M. P. ELECTRICITY BOARD - 1995 0 Supreme(MP) 294"] ]- "Scope of Section" - Section 41 operates as a bridging provision that enables transmission-use arrangements pending or alongside regulatory/regulatory-commission regimes; it interacts with Section 49 (pricing) and Section 26 (Board powers and licensee status), and with later statutory reforms (Delhi/WB/Punjab reorganizations) that reframe licensees and transmission utilities. [Sources: ["KARTICK CHANDRA GHOSH VS WEST BENGAL STATE ELECTRICITY BOARD - 2000 0 Supreme(Cal) 225"], ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"], ["K. L. RAMNATH BHAT VS KARNATAKA POWER TRANSMISSION CORPORATION LIMITED, BANGALORE - 2000 0 Supreme(Kar) 207"] ]- "Punishment for Section" - Section 41 itself does not specify penal sanctions; offences/punishments arise under the broader Electricity Acts (1910/1948) for unlawful acts connected to supply, theft, or non-compliance with orders, with penalties such as fines or imprisonment as provided elsewhere; Section 41 is a procedural/operational provision rather than a crime-creating provision. [Sources: ["JAI GLASS AND CHEMICALS PVT. LTD VS WEST BENGAL STATE ELECTRICITY BOARD - 2005 0 Supreme(Cal) 278"], ]- "Legal Comments" - "Authority to use transmission lines" - Section 41 empowers the appropriate authority (Central Government, State Government, Central/State Transmission Utility, or licensee) to determine/enter agreements for the use of transmission lines and to charge for such use. [Source: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"]]- "Legal Comments" - "Hierarchy of texts" - The interaction with 49 (tariffs) and 59 (board economics) shows that transmission-use charges are subject to statutory framework and regulatory oversight; voluntariness of agreements is constrained by statutory provisions. [Source: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"]]- "Legal Comments" - "Emergency/Policy overlays" - In Delhi and other reforms cases, the transition from Board-dominated regimes to regulatory-commission regimes redefines who can issue tariffs and how transmission-use rights are allocated; Section 41 remains part of transitional provisions. [Sources: ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"], ["Superpack VS M. P. State Electricity Board - 2008 0 Supreme(Cal) 868"]]- "Legal Comments" - "Relation to General Clauses Act" - The power to issue, modify, or withdraw notifications under general clauses (Sections 14-21 of General Clauses Act) can inform Section 41’s operation, especially in cross-jurisdictional contexts; such rescission/withdrawal must be legally justified. [Source: ["Hindustan Aluminium Corporation. Ltd. VS The U. P. State Electricity Board - 1972 0 Supreme(All) 236"] ]- "Legal Comments" - "Contractual vs. statutory regime" - Where transmission lines and energy supply involve private agreements, Section 41 ties into contractual terms while respecting statutory constraints; courts have treated such arrangements as part of the licensee’s statutory obligations. [Sources: ["Bihar State Electricity Board VS Green Rubber Industries - 1989 0 Supreme(SC) 608"], ["UNITED PHOSPHOROUS LTD. VS GUJARAT ELECTRICITY BOARD - 2005 0 Supreme(Guj) 711"] ]- "Legal Comments" - "Tariff/charges interplay" - Tariffs and charges for average/stand-alone transmission use are integrated with Sections 49 and 59; Section 41 supports the commercial framework by enabling use of transmission facilities under agreed terms and paid charges. [Sources: ["SECRETARY, WEST BENGAL STATE ELECTRICITY BOARD VS DEB KUMAR JASH - 2004 0 Supreme(Cal) 727"], ["ADONI COTTON MILLS LTD. VS A. P. STATE ELECTRICITY BOARD - 1976 0 Supreme(SC) 265"] ]- "Legal Comments" - "Cross-border/intra-state transmission" - Section 41 contemplates use of transmission lines for interactions among licensees, boards, and transmission utilities; the Delhi model demonstrates how such arrangement evolves with a regulatory regime, while preserving pre-existing rights during transition. [Source: ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"] ]- "Legal Comments" - "Judicial treatment of poles on private land" - While not central to Section 41, related judgments (e.g., fixing of poles on private lands) illustrate how Board/Licensee powers under Sections 41, 42, and other provisions are interpreted in practice, including the Board’s discretion to use rights of way for transmission. [Source: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"] ]- "Legal Comments" - "Impact of reform acts on Section 41" - The Electricity Act, 2003, and prior reforms modify the landscape in which Section 41 operates; its relevance persists as a transitional conduit for transmission-use rights until fully integrated with the new regulatory regime. [Sources: ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"], ["Executive Engineer, Gujarat Energy Transmission Corporation Ltd. VS Omprakash Narsinhbhai Padhiyar - 2022 0 Supreme(Guj) 162"] ]- "Legal Comments" - "Relation to standing/notifications" - Section 41 interacts with Government notifications and regulations about transmission use; the power to issue/withdraw such instruments is informed by General Clauses Act principles, ensuring ongoing adaptivity. [Source: ["Bhai Lal VS Superintending Engineer, Allahabad - 1978 0 Supreme(All) 549"] ]- "Legal Comments" - "Practical takeaway" - For practitioners, Section 41 underlines that licensees and transmission utilities may negotiate and implement transmission-use arrangements with appropriate charges, subject to statutory controls and regulatory oversight; disputes over such arrangements may be resolved by considering tariff acts and reform-era precedents. [Sources: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"], ["SECRETARY, WEST BENGAL STATE ELECTRICITY BOARD VS DEB KUMAR JASH - 2004 0 Supreme(Cal) 727"] ]- "Source-based Reference" - Core statutory text and related case-law illustrate that Section 41 enables use of transmission lines and sets groundwork for charges, while subsequent statutes refine the framework of tariffs, licensing, and regulatory oversight. [Sources: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"], ["KARTICK CHANDRA GHOSH VS WEST BENGAL STATE ELECTRICITY BOARD - 2000 0 Supreme(Cal) 225"], ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"] ]- "Source-based Reference" - For a consolidated understanding of practice in specific jurisdictions (e.g., Delhi post-reforms), see Delhi Reform Act provisions showing transitional allocation of licensee powers and the continuing relevance of Section 26 (licensee status) for meters and distribution. [Source: ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"] ]- "Source-based Reference" - In multiple judgments, courts have recognized that tariff-related actions, including standby charges and reshaped tariff regimes, must comport with statutory framework rather than unilateral executive fiat, reinforcing the need for regulatory approvals where applicable. [Sources: ["Gujarat Electricity Board VS Reliance Industries Ltd. - 2022 0 Supreme(Guj) 1850"], ["Superpack VS M. P. State Electricity Board - 2008 0 Supreme(Cal) 868"] ]- "Source-based Reference" - The interplay between Section 41 and Section 26 (Board powers as licensee) and Section 49 (sale/price) remains a central axis in determining who may authorize use and under what terms; doctrinal precedents in pre- and post-ERC Act periods inform current practice. [Sources: ["00900012281"], ["Isha Marbles: Bihar State Electricity Board: Chairman, Bihar State Electricity Board: Bihar State Electricity Board: Bihar State Electricity Board VS Bihar State Electricity Board: Waxpol Industries: Suman Packaging Private LTD. : Abhay Kumar: North East Fertilizers - 1995 0 Supreme(SC) 188"] ]- "Source-based Reference" - The jurisprudence also confirms that, where applicable, the use of transmission lines may require government notification or regulatory authorization; Section 41’s mechanism is compatible with a broad spectrum of regulatory evolutions across states. [Source: ["KARTICK CHANDRA GHOSH VS WEST BENGAL STATE ELECTRICITY BOARD - 2000 0 Supreme(Cal) 225"] ]- "Conclusion" - Section 41 serves as a foundational provision enabling the practical deployment and use of transmission infrastructure within a broad statutory ecosystem, with its operation shaped by tariff laws, licensee status, reform acts, and judicial interpretations of regulatory authority and contractual rights. [Sources: ["Arvind Kumar VS State Of Bihar - 2004 0 Supreme(Pat) 1144"], ["Suresh Jindal vs BSES Rajdhani Power Ltd. - Delhi (2005)"], ["S. K. M. FABRICS VS M. P. ELECTRICITY BOARD - 1995 0 Supreme(MP) 294"] ]
1[(1)] Notwithstanding anything contained in sections 12 to 16 and 18 and 19 of the Indian Electricity Act, 1910 (9 of 1910) but without prejudice to the requirements of section 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 sections 12 t
(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 section 15A; and
(c) with any other person with consent of the competent government or governments.
2[(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 reaso
(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[***]
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(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 any 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—
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(1) If any licensee fails to close down his generating station pursuant to a declaration of the Board under section 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 section 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 section 5 of the Revenue Recovery Act, 1890 (1 of 1890).
(3) Any difference or dispute arising out
(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 section 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 sale 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
Notwithstanding anything contained in sections 34 to 37 and sub-section (2) of section 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 situate 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 generating station or main transmission line:
Provided that in making any such arrangement the Board shall not show undue preference to any licensee.
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) 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 co-ordinated 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 not for the time being served or adequately served by the licensee;
(c) the simplific
Nothing contained in sections 34, 35 and 36 shall apply in any case where under section 19, it is not permissible for the Board to supply electricity directly to a licensee owning a generating station; and nothing in sections 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.
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.
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.
(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.
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) Until otherwise specified by the Central Government, the Central Transmission Utility shall operate the Regional Load Despatch Centres and the State Transmission Utility shall operate the State Load Despatch Centres.
(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
No licensee shall except with the previous approval in writing of the Board and 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.
A rating committee constituted under section 57A 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.]
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1. Ins. by Act 101 of 1956, sec. 14 (w.e.f. 30-12-1956).
(1) Where the provisions of the Sixth Schedule 2[***] are under section 57 deemed to be incorporated in the licence of any licensee, the following provisions shall have effect in relation to the said 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 to the State Government:
Provided that where it is proposed to constitute a rating committee unde
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 3[the said Schedule] accordingly, and any provisions of the Indian Electricity Act, 1910 (9 of 1910), and the licence granted to him thereunder 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 th
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 thereunder 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 the prior approval of the State Government.]
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(1) The Board shall, after taking credit for any subvention from the State Government under section 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) or 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 precentage, 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 fix
(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 section I have been instituted by or against the State Government may be continued or instituted by or against the Board.
1[(1A) 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 than2[one year] after the first cons
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) 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) 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.
—(1) 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 section 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.
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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.
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.
(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 this 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 thereunder as if the Board were a local authority.
(3) The maximum amount which the 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 o
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 revenues by reason of any such guarantees or paid into State revenues towards repayment of any money so paid out.
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1. Subs. by the A.O. 1950, for “Chamber”.
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(1) Notwithstanding anything contained in section 12A, 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 section 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, tha
—The Board shall distribute the surplus referred to in sub-section (1) of section 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 of bonds issued) under section 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 section 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 section 59 in such manner as the Board may decide.]
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Any interest which is payable on loans advanced under section 64 or deemed to have been advanced under section 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 section 59 and so much of such 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.]
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1. Ins. by Act 16 of 1983, sec. 4 (w.e.f. 1-4-1985).
(1) 2[***] The Board 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.
3[***]
(3) The provisions of this section shall apply to the charging of depreciation for the year in which the Electricity (Supply) Amendment Act, 1978 (23 of 1978), comes into force.]
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1. Section 68 subs. by Act 101 of 1956, sec. 18 (w.e.f. 30-12-1956) again subs. by Act 30 of 1966, sec. 15 (w.e.f. 16-9-1966) and again subs. by Act 23 of 1978, sec. 15 (w.e.f. 3-6-1978).
2. The words “Subject to the
—(1) The Board shall cause proper accounts and other records in relation thereto 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-sheet 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 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 wi
(1) No provision of the Indian Electricity Act, 1910 (9 of 1910), or of any rules made thereunder 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).
[Repealed. by the Indian Electricity (Amendment) Act, 1959 (32 of 1959), Section 41 (w.e.f. 5-9-1959).]
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 not expedient for the Board 2[or the Generating Company so to develop] or use the water-power concerned.
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1. Subs. by Act 115 of 1976, sec. 27, for “the Board” (w.r.e.f 8-10-1976).
2. Subs. by Act 115 of 1976, sec. 27, for “or that the Board is unable so to develop” (w.r.e.f. 8-10-1976).
Where a multi-purpose 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.
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1. Subs. by Act 115 of 1976, sec. 28, for “the Board shall co-ordinate its activities” (w.r.e.f. 8-10-1976).
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.
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1. Subs. by Act 23 of 1978, sec. 17, for “officer or servant” (w.e.f. 3-6-1978).
2. Subs
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 3[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 government or the 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.
4[(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 b
1[***]
2[3[(1)]4[***] The Board shall, as soon as may be after the end of each financial year, prepare and submit to the State Government 5[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 Governme
—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[(3A) Where any question or matter is referred to the Authority for arbitration under this section, th
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) section 4; or
(b) section 55; or
(c) clause (d) of sub-section (1) of section 57A; or
(d) section 57B; or
(e) section 58; or
(f) sub-section (3) of section 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 o
.—No Court shall take cognizance of an offence under section 77, except on the complaint of,—
(a) in the case of an offence relating to section 4, by an officer of the Authority authorized 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 authorised by the State Government in that behalf.]
—————
1. Subs. by Act 101 of 1956, sec. 21, for section 77C (w.e.f. 30-12-1956).
&n
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.]
—————
1. Subs. by Act 101 of 1956, sec. 21, for section 77A (w.e.f. 30-12-1956).
(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 this 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 o
(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 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)
(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 1956, sec. 23 (w.e.f. 30-12-1956).
1[The Board may by notification in the Official Gazette, make regulations] not inconsistent with this Act and the rules made thereunder 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) the summoning and holding of meetings of the Board, the times and places at which such meetings shall be held, the conduct of business thereat 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 operations of the Board under section 2
—Every notification issued under section 55 by the State Government, or the State Commission, as the case may be, every rule made by that Government under section 78 and every regulation made by the Board under section 79, shall be laid, as soon as may be, before the State Legislature.]
—————
1. Section 79A ins. by Act 20 of 1983, sec. 2 and Sch. (w.e.f. 15-3-1984) and subs. by Act 22 of 1998, sec. 13 (w.e.f. 31-12-1998).
(1) For the purposes of the Indian Income-tax Act, 1922 (11 of 1922), 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.
All 1[members and 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 section 21 of the Indian Penal Code (45 of 1860).
—————
1. Subs. by Act 23 of 1978, sec. 20, for “members, officers or servants” (w.e.f. 3-6-1978).
The First Schedule
(See sections 34 and 36)
Part I
Assumption of control
I. (1) The Board shall by notice in writing to the licensee fix a date (hereafter 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 remov
The Second Schedule
(See section 35)
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 paragraph 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 section 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 reason
The Third Schedule
(See section 36)
I. Where the Board proposes under section 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 the next succeeding year of account (hereafter in this Schedule referred to as the date of closing down) the station shall be permanently closed down.
II. From the date of closing down the Board shall be under obligation to supply to the licensee, except where prevented by causes beyond its control, and the licensee shall be under 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
The Fourth Schedule
(See sections 23 and 37 and First and Third Schedules)
I. 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 paragraph 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[***]
II. The price to be paid for any undertaking, generat
The Ninth Schedule
(See the First Schedule)
I. 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 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 st
The Fifth Schedule
(See section 41)
1. The following charges and allowances shall be made in respect of a year of account for the use by 2[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 taxes 3[(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
The Sixth Schedule
1[See sections 57 and 57A]
I. 2[Notwithstanding anything contained in the Indian Electricity Act, 1910 (9 of 1910) 3[[except sub-section (2) of section 22A]], and the provisions in the licence of a licensee, the licensee shall so adjust his 4[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:]
5[Provided that such 6[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 4[charges] if the clear profit in any year of account has not exceeded the amount of reasonable return by 6[twenty] per centu
The Seventh Schedule
[Omitted by the Electricity Supply (Amendment) Act, 1978, (23 of 1978), sec. 24 (w.e.f. 3-6-1978).]
The Eighth Schedule
(See the First and Third Schedules)
I. 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 an
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