Indias

Electricity Sector
Widening Scope
For
Private Participation
Investment Promotion Cell
INDEX
TA!E "F C"NTENTS
Sl# Description
1. Introduction
General
2. Abbreviations
3. Ministry of Power
4. Statutory Bodies
5 New initiatives in the ower sector! A brief
". #efor$s % #estructurin& in States! Mi'estones( Status
Electricity Act, 2003 $%&#&'#(&&)*
). Part!I ! Pre'i$inary
*. Part!II ! Nationa' +'ectricity Po'icy and P'an
,. Part!III ! -eneration of +'ectricity
1.. Part!I/ ! 0icensin&
11. Part!/ ! 1rans$ission of +'ectricity
12. Part!/I ! 2istribution of +'ectricity
13. Part!/II ! 1ariff
14. Part!/III ! 3or4s
15. Part I5 6 7entra' +'ectricity Authority
1". Part 5 ! #e&u'atory 7o$$issions
1). Part 5I 6 Ae''ate 1ribuna' 8or +'ectricity
1*. Part 5II 6 Investi&ations % +nforce$ent
1,. Part 5III 6 #e!or&anisation of Board
2.. Part 5I/ ! 9ffenses % Pena'ties
21. Part 5/ 6 Secia' 7ourts
22. Part 5/I 6 2isute #eso'ution
23. Part 5/II 6 9ther rovisions
24. Part 5/III 6 Misce''aneous
25. 1he +'ectricity :A$end$ent; Act< 2..3 dated 3.
th
2ece$ber< 2..3
Notifications & Resolutions
2" #eview of o'icies 6 Suercession of outdated circu'ars and &uide'ines.
2) Nationa' +'ectricity Po'icy :12..2.2..5;
2* 7+#7 :1er$s % 7ondition of tariff; #e&u'ations< 2..4 :2"..3.2..4; and :1
st
A$end$ent;
#e&u'ations< 2..4 dated 3
rd
Sete$ber< 2..4
2, 1ariff 8i'in& 8or$s :2".3.2..4;
3. 9en Access in Inter!state 1rans$ission ( 7+#7 :3...1.2..4; % :1
st
A$end$ent;
#e&u'ations< 2..5 dated 21
st
8ebruary< 2..5
2
31 +'ectricity 1radin& 0icense ( 7+#7 :3..1.2..4;
32 0ist containin& c'earances re=uired for ower ro>ects
33 +nviron$enta' de'e&ation orders
34 A$end$ent in +nviron$ent :Protection; #u'es< 1,*" :1,..,.1,,);
35 ?se of raw( b'ended( beneficiated coa' in 1PSs :3.).1,,*;
3" 7oasta' #e&u'ation @one and A$end$ents
3) -uide'ines for deter$ination of tariff by biddin& rocess for rocure$ent of ower by
distribution 'icensees :1,..1.2..5;
Mega Power Policy
3* Me&a ower o'icy &uide'ines :13.11.1,,*;
3, +Atracts of Notification issued by 2eart$ent of #evenue as on 1.3.2..3
Project Financing
4. #BI Press re'ease 1..B 82I in Pvt Sector
41 Press Note ):2...; Series
Addresses
39
42 7ontact addresses of Ministry of Power
43 7ontact addressesC 7entra' +'ectricity #e&u'atory 7o$$ission
44 7ontact addressesC State #e&u'atory 7o$$issions
45 7ontact addressesC Secretary:+ner&y(Power; !States
4" 7ontact addressesC 7hair$an< S+Bs (?ti'ities
4) 7ontact addressesC 7M2s of PS?s
3
INT+"D,CTI"N
1he &rowth of the econo$y< ca''s for a $atchin& rate of &rowth in infrastructure
faci'ities. 1he &rowth rate of de$and for ower in deve'oin& countries is &enera''y hi&her
than that of -ross 2o$estic Product :-2P;. In India< the e'asticity ratio was 3.." in the first
P'an and ea4ed at 5.11 durin& third 'an and co$e down to 1."5 in the +i&hties. 8or the
Nineties< a ratio of around 1.5 was ro>ected. 1herefore< in order to suort a rate of &rowth
of -2P of around ) ercent er annu$< the rate of &rowth of ower su'y needs to be over
1. ercent annua''y. Power Sector< hitherto< had been funded $ain'y throu&h bud&etary
suort and eAterna' borrowin&s. But &iven the bud&etary suort 'i$itation< due to &rowin&
de$ands fro$ other sectors< articu'ar'y socia' sector and the severe borrowin& constraints< a
new financin& strate&y is re=uired. 1his had been reco&nised by the -overn$ent as ref'ected
in the new o'icy enunciated in 1,,1< a''owin& rivate enterrise a 'ar&er ro'e in the ower
sector. 1his boo4'et inc'udes the $ain features of the o'icy to faci'itate rivate sector
invest$ent in ower &eneration< a'on& with coies of i$ortant circu'ars< notifications< etc.
1he initiatives ta4en by the -overn$ent in this direction have a'so been inc'uded in this
edition. 1he +'ectricity Act< 2..3 is one of such $a>or initiative.
1he +'ectricity Act< 2..3 is a very ro&ressive 'e&is'ation that creates 'ibera' and
transarent fra$ewor4 for deve'o$ent of ower sector. +ntry barriers have been sou&ht to
be re$oved in a'' se&$ents of the ower industry< thereby faci'itatin& co$etition and
ensurin& efficiency &ains for consu$ers. 1he Act rovides for severa' $easures to encoura&e
refor$s in the distribution sector in ter$s of $andatory $eterin& and strin&ent ena'
rovisions for theft of e'ectricity. 7onsu$ers re$ain the foca' oint of the new 'aw< with
secific rovisions safe&uardin& their interests. 1here are rovision for 7onsu$er -rievance
#edressa' 8oru$ and 9$buds$an to sett'e consu$erDs &rievances. State 7o$$issions are
re=uired to secify erfor$ance standards of 'icensees. 8ai'ure to co$'y with the
erfor$ance standards $a4es the 'icensees 'iab'e to ay co$ensation to the affected erson.
1he 'icensees are $andated to &ive su'y to consu$ers on de$and within a stiu'ated eriod
fai'in& which they are 'iab'e to ay ena'ty. State -overn$ents are re=uired to constitute
2istrict 'eve' co$$ittees to review inter!a'ia rura' e'ectrification< =ua'ity of ower and
consu$er satisfaction. 1he Act a'so has secific rovisions see4in& to encoura&e rura'
e'ectrification inc'udin& 'oca' distribution throu&h Panchayats< ?ser Associations<
8ranchisees etc. 1he 7entra' -overn$ent is re=uired to for$u'ate the secific o'icies on
rura' e'ectrification ! one< on stand a'one syste$s for rura' areas and the other on
e'ectrification and 'oca' distribution. 1he Act entrusts on the Aroriate -overn$ent the
ob'i&ation to endeavour to su'y e'ectricity to a'' areas inc'udin& vi''a&es and ha$'ets. 1he
Act encoura&es 'icence free distributed &eneration :i.e. &eneration % distribution; in a rura'
area to be notified by the State -overn$ent.
1he first $a>or ste towards encoura&in& rivate invest$ent in the Power sector was
ta4en in 1,,1 by rovidin& a 'e&a' fra$e wor4 throu&h an a$end$ent of the then eAistin&
+'ectricity :Su'y; Act< 1,4*. Subse=uent'y< a definite tariff fra$ewor4 was a'so ut in 'ace
throu&h notification issued by the -overn$ent of India. 8urther< to brin& about
rationa'iEation and transarency in tariff settin& rocess< the institution of Indeendent
#e&u'atory 7o$$ission was created throu&h an enact$ent in 1,,*. ?nder the +'ectricity
Act< 2..3< tariff for su'y of ower by a &eneratin& co$any to a distribution 'icensee
throu&h 'on& ter$ Power Purchase A&ree$ent :PPA;< is to be deter$ined by the #e&u'atory
7o$$ission. 1ariff for su'y invo'vin& a short ter$ PPA :one year or 'ess; wou'd not<
however< be re&u'ated. 3here oen access has been a''owed to a consu$er< he can reach an
4
a&ree$ent with his su'ier for urchase of e'ectricity and the tariff for such transaction
wou'd not be re&u'ated. 1ariff deter$ined throu&h co$etitive biddin& is a'so not to be
re&u'ated.
1he -overn$ent 'ans to add around 1<..<... M3 of additiona' &eneration caacity
durin& 2..2!2.12. 1his caacity has been 'anned to be added throu&h 7entra' Power
-eneration ?ti'ities< State Power -eneration ?ti'ities and Private -eneration ?ti'ities. 1he
associated trans$ission syste$ is to be i$'e$ented by Power -rid 7ororation of India 0td.
:P93+#-#I2;< State Power(1rans$ission ?ti'ities and rivate trans$ission entities. An
invest$ent of about #s. )1<... 7rore is envisa&ed in trans$ission under centra' sector< out of
which P93+#-#I2 has 'anned to invest about #s. 5.<... 7rore on its own and the
re$ainin& #s. 21<... 7rore is eAected to be brou&ht in by the rivate investors.
-overn$ent of India issued &uide'ines for rivate sector articiation in trans$ission
sector in Fanuary 2.... 1hese &uide'ines envisa&e two distinct routes for rivate sector
articiation in trans$issionC -oint .ent/re $-.* +o/te< wherein the 71?(S1? sha'' own at
'east 2"B e=uity and the ba'ance sha'' be contributed by the Foint /enture Partner and
Independent Private Transmission Company $IPTC* +o/te< wherein 1.. ercent e=uity
sha'' be owned by the rivate entity.
?nder the rovisions of the +'ectricity Act< 2..3< distribution of e'ectricity is a
'icensed activity and the 'icense is &ranted by the aroriate #e&u'atory 7o$$ission.
1hus< any entity ( erson< whether in ub'ic sector< can a'y to the aroriate 7o$$ission
for &rant of distribution 'icensee.
1he Act a'so rovides that the aroriate 7o$$ission $ay &rant a 'icence to two or
$ore ersons for distribution of e'ectricity throu&h their own distribution syste$ within the
sa$e area< sub>ect to the co$'iance with the additiona' re=uire$ents relating to the caita'
ade=uacy< credit!worthiness< or code of conduct as $ay be rescribed by the 7entra'
-overn$ent. 1he Act further rovides that no such a'icant who co$'ies with a'' the
re=uire$ents for &rant of 'icence< sha'' be refused &rant of 'icence on the &round that there
a'ready eAists a 'icensee in the sa$e area for the sa$e urose. 7entra' -overn$ent has
a'ready notified the additiona' re=uire$ents in this re&ard.
1he Nationa' +'ectricity Po'icy notified by 7entra' -overn$ent under the rovisions
of the +'ectricity Act< 2..3 states that rivate sector articiation in distribution needs to be
encoura&ed for achievin& the re=uisite reduction in trans$ission and distribution 'osses and
i$rovin& the =ua'ity of service to the consu$ers.
5
A+E.IATI"NS
7+A ! 7entra' +'ectricity AuthorityM7M2 ! Mi''ion 7ubic Meter er 2ay
7+#7 ! 7entra' +'ectricity #e&u'atory S+#7 ! State +'ectricity #e&u'atory
7o$$ission 7o$$ission
7rore ! 1en $i''ion M97 ! Ministry of 7oa'
7P7B ! 7entra' Po''ution 7ontro' Board M9+%8! Ministry of +nviron$ent %
737 ! 7entra' 3ater 7o$$ission 8orests
778I ! 7abinet 7o$$ittee on 8orei&n M9# ! Ministry of #ai'ways
Invest$ent M9P ! Ministry of Power
7I0 ! 7oa' India 0i$ited M9? ! Me$orandu$ of
2ett.Irr&.! 2eart$ent of Irri&ation ?nderstandin&
2P# ! 2etai'ed Pro>ect #eort MP%N- ! Ministry of Petro'eu$ %
+9?s ! +Aort 9riented ?nits Natura' -as
298 ! 2eart$ent of 8orest M1 ! Mi''ion 1onnes
+7B ! +Aterna' 7o$$ercia' Borrowin& M? ! Mi''ion ?nits
+P7 ! +n&ineerin&< Procure$ent and M3 ! Me&a 3atts
7onstruction N1P7 ! Nationa' 1her$a' Power 7or
+%8 ! +nviron$ent % 8orest NAA ! Nationa' Airort Authority
+:S; Act ! +'ectricity:Su'y; Act< 1,4* NGP7 ! Nationa'
Gydro!e'ectric Power
8IPB ! 8orei&n Invest$ent Pro$otion 7or
Board P-70 ! Power&rid 7ororation of
SI- ! Standin& Indeendent -rou India 0td.
8SA ! 8ue' Su'y A&ree$ent P08 ! P'ant 0oad 8actor
81A ! 8ue' 1ransort A&ree$ent PPA ! Power Purchase A&ree$ent
8# ! 8easibi'ity #eort #8P ! #e=uest for roosa'
-9I ! -overn$ent of India #8H ! #e=uest for Hua'ification
GPB ! Gi&h Powered Board #9+ ! #eturn on +=uity
IA ! I$'e$entation A&ree$ent S+B ! State +'ectricity Board
I27 ! Interest 2urin& 7onstruction S- ! State -overn$ent
I97 ! Indian 9i' 7ororation SIA ! Secretariat for Industria'
IP7 ! Invest$ent Pro$otion 7e'' Arova's
IPP ! Indeendent Power Producer S07 ! Standin& 0in4a&e
7o$$ittee
I## ! Interna' #ate of #eturn SPA7 ! Standin& Pro>ect Araisa'
I3G ! Ii'o 3att Gour 7o$$ittee
I7a' ! Ii'o 7a'orie SP7B ! State Po''ution 7ontro' Board
07 ! 0etter of 7redit 1+7 ! 1echno!+cono$ic 7'earance
09I ! 0etter of Intent ?1 ! ?nion 1erritory
74t. I$s.! 7ircuit Ii'o$eters 7PP ! 7ative Power
Pro>ect
PS? ! Pub'ic Sector ?nderstandin&s I7B ! Internationa' 7o$etitive
P17 ! Power 1radin& 7ororation Biddin&
"
0INIST+1 "F P"WE+
%#& 0INIST+1 "F P"WE+
1he Ministry of Power started functionin& indeendent'y with effect fro$ 2nd Fu'y< 1,,2.
+ar'ier it was 4nown as the Ministry of +ner&y co$risin& the 2eart$ents of Power< 7oa'
and Non!7onventiona' +ner&y Sources.

+'ectricity is a concurrent sub>ect at +ntry 3* in 0ist III of the Seventh Schedu'e of the
7onstitution of India. 1he Ministry of Power is ri$ari'y resonsib'e for the deve'o$ent of
e'ectrica' ener&y in the country. 1he Ministry is concerned with ersective 'annin&< o'icy
for$u'ation< rocessin& of ro>ects for invest$ent decision< $onitorin& of the
i$'e$entation of ower ro>ects< trainin& and $anower deve'o$ent and the
ad$inistration and enact$ent of 'e&is'ation in re&ard to ther$a'< hydro ower &eneration<
trans$ission and distribution.

1he Ministry of Power is resonsib'e for the ad$inistration of the +'ectricity Act< 2..3 and
the +ner&y 7onservation Act< 2..1 and to underta4e such a$end$ents to these Acts< as $ay
be necessary fro$ ti$e to ti$e< in confor$ity with the -overn$entDs o'icy ob>ectives.

1he Ministry of Power is $ain'y resonsib'e for evo'vin& &enera' o'icy in the fie'd of
ener&y. 1he $ain ite$s of wor4 dea't with by the Ministry of Power are as be'owC

1.1 -enera' Po'icy in the +'ectric Power Sector and issues re'atin& to ener&y o'icy.
:2etai's of short< $ediu$ and 'on&!ter$ o'icies in ter$ o'icies in ter$s of for$u'ation<
accetance< i$'e$entation and review of such o'icies< cuttin& across sectors< fue's< re&ions
and cross country f'ows;.

1.2 A'' $atters re'atin& to hydroe'ectric ower :eAcet s$a''($ini($icro hyde' ro>ects of
and be'ow 25 M3 caacity; and ther$a' ower and trans$ission syste$ networ4.

1.3 #esearch< deve'o$ent and technica' assistance re'atin& to hydroe'ectric and ther$a'
ower and trans$ission syste$ networ4.

1.4. Ad$inistration of the 2a$odar /a''ey 7ororation Act< 1,4* :14 of 1,4*;< the
Bha4ra Beas Mana&e$ent Board as rovided in the Pun>ab #eor&aniasation Act< 1,"" :31 of
1,"";.

1.5. A'' $atters re'atin& to 7entra' +'ectricity Authority< 7entra' +'ectricity Board and
7entra' +'ectricity #e&u'atory 7o$$ission.

1." #ura' +'ectrification< ower sche$es in ?nion 1erritories and issues re'atin& to ower
su'y in the States and ?nion 1erritories.

1.) Matters re'atin& to the fo''owin& ?nderta4in&s(9r&anisations etc.C

:a; 1he 2a$odar /a''ey 7ororation.
:b; 1he Bha4ra Beas Mana&e$ent Board :eAcet $atters re'atin& to irri&ation;.
:c; Nationa' 1her$a' Power 7ororation 0i$ited.
:d; Nationa' Gydro!e'ectric Power 7ororation 0i$ited.
)
:e; #ura' +'ectrification 7ororation 0i$ited.
:f; North +astern +'ectric Power 7ororation 0i$ited.
:&; Power -rid 7ororation of India 0i$ited.
:h; Power 8inance 7ororation 0i$ited.
:i; 1ehri Gydro 2eve'o$ent 7ororation.
:>; Sat'u> Fa' /idyut Ni&a$ 0i$ited.
:4; 7entra' Power #esearch Institute.
:'; Nationa' Power 1rainin& Institute.
:$; Bureau of +ner&y +fficiency.

1.* 9ther Pub'ic Sector +nterrises concerned with the sub>ect inc'uded under this
Ministry eAcet such ro>ects as are secifica''y a''otted to any other Ministry or 2eart$ent.

1., A'' $atter concernin& +ner&y 7onservation and +ner&y +fficiency ertainin& to the
Power Sector.

(#& "+2ANISATI"NS ,NDE+ 0INIST+1 "F P"WE+

1he 7entra' +'ectricity Authority is to eAercise such functions and erfor$ usch duties and
act in such a $anner as the 7entra' -overn$ent $ay rescribe under the #u'es fra$ed under
Section 1)" of the +'ectricity Act< 2..3 or by issue of written directions in $atters of o'icy
invo'vin& ub'ic interest under Section )5 of the said Act. 7+A is articu'ar'y char&ed with
the fo''owin& functions under Section )3 of the said Act.
:i; Advise the 7entra' -overn$ent on the $atters re'atin& to the nationa' e'ectricity
o'icy< for$u'ate short!ter$ and ersective 'ans for deve'o$ent of the e'ectricity syste$
and co!ordinate the activities of the 'annin& a&encies for the oti$a' uti'iEation of resources
to subserve the interests of the nationa' econo$y and to rovide re'iab'e and affordab'e
e'ectricity for a'' consu$ersJ
:ii; secify the technica' standards for construction of e'ectrica' 'ants< e'ectric 'ines and
connectivity to the &ridJ
:iii; secify the safety re=uire$ents for construction< oeration and $aintenance of e'ectrica'
'ants and e'ectric 'inesJ
:iv; secify the -rid Standards for oeration and$aintenance of trans$ission 'inesJ
:v; secify the conditions for insta''ation of $eters for trans$ission and su'y of e'ectricityJ
:vi; ro$ote and assist in the ti$e'y co$'etion of sche$es and ro>ects for i$rovin& and
au&$entin& the e'ectricity syste$J
:vii; ro$ote $easures for advancin& the s4i'' of ersons en&a&ed in the e'ectricity industryJ
:viii; advise the 7entra' -overn$ent on any $atter on which its advice is sou&ht or $a4e
reco$$endation to that -overn$ent on any $atter if< in the oinion of the Authority< the
reco$$endation wou'd he' in i$rovin& the &eneration< trans$ission< tradin&< distribution
and uti'isation of e'ectricityJ
*
:iA; co''ect and record the data concernin& the &eneration< trans$ission< tradin&< distribution
and uti'isation of e'ectricity and carry out studies re'atin& to cost< efficiency< co$etitiveness
and such 'i4e $attersJ
:A; $a4e ub'ic fro$ ti$e to ti$e the infor$ation secured under this Act< and rovide for the
ub'ication of reorts and investi&ationsJ
:Ai; ro$ote research in $atters affectin& the &eneration< trans$ission< distribution and
tradin& of e'ectricityJ
:Aii; carry out< or cause to be carried out< any investi&ation for the uroses of &eneratin& or
trans$ittin& or distributin& e'ectricityJ
:Aiii; advise any State -overn$ent< 'icensees or the &eneratin& co$anies on such $atters
which sha'' enab'e the$ to oerate and $aintain the e'ectricity syste$ under their ownershi
or contro' in an i$roved $anner and where necessary< in co!ordination with any other
-overn$ent< 'icensee or the &eneratin& co$any ownin& or havin& the contro' of another
e'ectricity syste$J
:Aiv; advise the Aroriate -overn$ent and the Aroriate 7o$$ission on a'' technica'
$atters re'atin& to &eneration< trans$ission and distribution of e'ectricityJ and
:Av; dischar&e such other functions as $ay be rovided under this Act.
Aart fro$ the above functions 7+A a'so underta4es desi&n and en&ineerin& of ower
ro>ects with a view to deve'o in house technica' 4now!how and a'so to assist the State
+'ectricity Boards< -eneratin& 7o$anies % State authorities re=uirin& such assistance .
Besides this< the $onitorin& of f'y!ash &eneration by coa' ('i&nite ther$a' ower ro>ects is
bein& carried out on a'' India basis.

Badarur Mana&e$ent 7ontract 7e'' :BM77;< a subordinate office of this Ministry< is
resonsib'e for ad$inisterin& the Badarur 1her$a' Power Station :B1PS; Mana&e$ent
7ontract between the -overn$ent of India and N1P7.

1he construction and oeration of &eneration and trans$ission ro>ects in the 7entra' Sector
are entrusted to 7entra' Sector Power 7ororations< viE. 1he Nationa' 1her$a' Power
7ororation :N1P7;< the Nationa' Gydro +'ectric Power 7ororation :NGP7;< the North
+astern +'ectric Power 7ororation and the Power -rid 7ororation of India 0i$ited
:P-7I0;. 1he Power -rid is resonsib'e for a'' the eAistin& and future trans$ission ro>ects
in the 7entra' Sector and a'so for the for$ation of the Nationa' Power -rid. 1wo Foint
/enture Power 7ororations na$e'y< Sat'u> Fa' /idyut Ni&a$ :SF/N; and 1ehri Gydro
2eve'o$ent 7ororation :1G27; are resonsib'e for the eAecution of the Natha Fha4ri
Power Pro>ect in Gi$acha' Pradesh and ro>ects of the 1ehri Gydro Power 7o$'eA in
?ttarancha' resective'y. 1wo statutory bodies i.e.< the 2a$odar /a''ey 7ororation :2/7;
and the Bha4ra Beas Mana&e$ent Board :BBMB; are a'so under the ad$inistrative contro'
of the Ministry of Power. Pro&ra$$es of rura' e'ectrification are rovided financia'
assistance by the #ura' +'ectrification 7ororation :#+7; under the Ministry of Power. 1he
Power 8inance 7ororation :P87; rovides ter$!finance to ro>ects in the ower sector.

,
8urther< the autono$ous bodies :societies; i.e. 7entra' Power #esearch Institute :7P#I;< the
Nationa' Power 1rainin& Institute :NP1I; and the +ner&y Mana&e$ent 7entre :+M7; are
a'so under the ad$inistrative contro' of the Ministry of Power. A Power 1radin& 7ororation
:P17; has a'so been set u in Ari'< 1,,, to cata'yse deve'o$ent of $e&a ower ro>ects
and to ro$ote eAchan&e of ower with nei&hbourin& countries.

)#& "+2ANISATI"NA! SET3,P
Shri P.M. Sayeed is the Minister of Power. Shri. #./. Shahi is the Secretary of the Ministry.
Ge is assisted by a Secia' Secretary< two Additiona' Secretaries and four Foint Secretaries<
inc'udin& the 8inancia' Adviser.
1he Additiona' Secretary 'oo4s after the wor4 re'atin& to 9eration Monitorin& :9M;<
1her$a'< +ner&y 7onservation< estab'ish$ent $atters of 7entra' +'ectricity Authority<
inc'udin& that of the 7entra' Power +n&ineerin& :-rou A; Services. 1he a''ocation of wor4
a$on& the five Foint Secretaries in the Ministry of Power is as underC

:i; Gyde'< 7oordination< Press and Pub'icity.
:ii; Ad$inistration< 1her$a' and 2istribution< inc'udin& AP2P and I1.
:iii; #efor$s % #estructurin&< /i&i'ance % Security< Power 8inance 7ororation :P87; and
#ura' +'ectrification 7ororation :#+7;< Po'icy< P'annin& and +Aterna' Assistance<
9fficia' 0an&ua&e.
:iv; Accounts % 8inance< #esource P'annin&< Monitorin& of 8inancia' erfor$ance of S+Bs<
and fo''ow u action on the reco$$endation of Monte4 Sin&h Ah'uwa'ia 7o$$ittee %
N.I. Sin&h 7o$$ittee.
:v; Invest$ent Pro$otion 7e''< 1rans$ission< Power&rid 7ororation of India 0td.
:P-7I0;< Power 1radin& 7ororation :P17;< 1rainin& % #esearch and 9eration
Monitorin&.

1here is a Princia' Accounts 9ffice headed by the 7ontro''er of Accounts who in turn
reorts to the 8inancia' Adviser in the Ministry of Power. Matters re'atin& to reservations for
S7(S1< Physica''y Gandicaed and 9B7 are dea't by the resective 0iaison 9fficers.
Matters re'atin& to recreation activities are dea't by Power Sort 7ontro' Board. 1he tota'
staff stren&th of the Ministry is 313. 1here are 4" wo$en e$'oyees in the Ministry of Power
:Sectt.;
4#& IN.EST0ENT P+"0"TI"N CE!!
1he Invest$ent Pro$otion 7e'' :IP7; was set u in 1,,1 under the Ministry of Power as the
noda' a&ency to rovide infor$ation and assistance to rosective entrereneurs in the
e'ectricity sector. Settin& u of the IP7 $ar4ed a fresh initiative to invo've the rivate sector
in ower &eneration in a $uch bi&&er way. IP7 not on'y rovides infor$ation on the o'icy
re&ardin& rivate sector articiation in the ower sector< but a'so for$u'ates or su&&ests
o'icy a$end$ents to encoura&e rivate articiation in ower. It a'so acts as a sin&'e
window in rovidin& &uidance on the c'earances to be obtained and the $oda'ities for
obtainin& these.
Stat/tory odies
1.
Central Electricity A/t5ority $CEA*6
7+A is a statutory body constituted by the 7entra' -overn$ent under the erstwhi'e
+'ectricity :Su'y; Act< 1,4* and continued under the +'ectricity Act< 2..3 :which has since
reea'ed inter a'ia the +:S; Act< 1,4*;. 1he Authority has the resonsibi'ity of for$u'atin& the
Nationa' +'ectricity P'an in accordance with the Nationa' +'ectricity Po'icy< once in five
years. 7+A re$ains the $ain technica' advisor of the -overn$ent< the #e&u'atory
7o$$issions. It is a'so re=uired to secify inter!a'ia the technica' standards and safety
re=uire$ents for construction< oeration and $aintenance of e'ectrica' standards and
e'ectrica' 'ines.
Appellate Tri7/nal For Electricity
?nder the rovisions of Section 11. of the +'ectricity Act< 2..3< the Ae''ate
1ribuna' for +'ectricity has been estab'ished at 2e'hi which wi'' here aea's a&ainst the
orders of the Ad>udicatin& 9fficer or the aroriate #e&u'atory 7o$$ission under the Act.
1he 1ribuna' has beco$e oerationa' fro$ 21
st
Fu'y< 2..5. 1he 1ribuna' co$rises of the
fo''owin& Me$bersC!
i; Shri Fustice Ani' 2ev Sin&h ! 7hairerson % Fudicia' Me$ber
ii; Shri Fustice +.Pad$anabhan 6 Fudicia' Me$ber
iii; Shri G.0.Ba>a> ! 1echnica' Me$ber
iv; Shri A.A.Ihan 6 1echnica' Me$ber
Central Electricity +eg/latory Commission $CE+C*6
7+#7 is a statutory body constituted under the rovision of the erstwhi'e +'ectricity
#e&u'atory 7o$$issions Act< 1,,* and continued under +'ectricity Act< 2..3 :which has
since reea'ed inter a'ia the +#7 Act< 1,,*;. 1he $ain functions of the 7+#7 are to re&u'ate
the tariff of &eneratin& co$anies owned or contro''ed by the 7entra' -overn$ent< to
re&u'ate the tariff of &eneratin& co$anies other than those owned or contro''ed by the
7entra' -overn$ent< if such &eneratin& co$anies enter into or otherwise have a co$osite
sche$e for &eneration and sa'e of e'ectricity in $ore than one State< to re&u'ate the inter!State
trans$ission of ener&y inc'udin& tariff of the trans$ission uti'ities< to &rant 'icences for inter!
State trans$ission and tradin& and to advise the 7entra' -overn$ent in for$u'ation of
Nationa' +'ectricity Po'icy and 1ariff Po'icy.
State Electricity +eg/latory Commission $SE+C*6
1he S+#7 as a statutory body resonsib'e for deter$ination of tariff and &rant of 'icence at
intra!State 'eve' was envisa&ed in the erstwhi'e #e&u'atory 7o$$issions Act< 1,,* and has
been continued in the +'ectricity Act< 2..3 :which has since reea'ed inter a'ia the +#7 Act<
1,,*;. Main resonsibi'ities of the S+#7 are to deter$ine the tariff for &eneration< su'y<
trans$ission and whee'in& of e'ectricity< who'e sa'e< bu'4 or retai' sa'e within the StateJ to
issue 'icences for intra!State trans$ission< distribution and tradin&J to ro$ote co!&eneration
and &eneration of e'ectricity fro$ renewa' sources of ener&y etc.
Central Transmission ,tility $CT,*6
11
71? as a statutory body was conceived in section 2) A of the erstwhi'e Indian +'ectricity
Act< 1,1. and has been retained in the +'ectricity Act< 2..3 :which has since reea'ed inter!
a'ia the Indian +'ectricity Act< 1,1.;. 1he functions of the 71? are be to underta4e
trans$ission of ener&y throu&h inter!State trans$ission syste$ and dischar&e a'' functions of
'annin& and coordination re'atin& to inter!State trans$ission syste$ with State 1rans$ission
?ti'ities< 7entra' -overn$ent< State -overn$ents< &eneratin& co$anies etc. Power -rid
7ororation of India 0i$ited has beennotified as 7entra' 1rans$ission ?ti'ity.
State Transmission ,tility $ST,*6
S1? as a statutory body was conceived in section 2) B of the erstwhi'e Indian +'ectricity
Act< 1,1. and has been retained in the +'ectricity Act< 2..3 :which has since reea'ed inter!
a'ia the Indian +'ectricity Act< 1,1.;. 1he functions of the State 1rans$ission ?ti'ity are to
underta4e trans$ission of ener&y throu&h intra!state trans$ission syste$ and dischar&e a''
functions of 'annin& and coordination re'atin& to intra!State trans$ission syste$ with
7entra' 1rans$ission ?ti'ity< State -overn$ents< &eneratin& co$anies etc.
National !oad Despatc5 Centre $N!DC*6
1he +'ectricity Act< 2..3 has rovided for constitution of the Nationa' 0oad 2esatch 7entre
for oti$u$ schedu'in& and desatch of e'ectricity a$on& the #e&iona' 0oad 2esatch
7entres. 1he constitution and functions of N027 are bein& notified by the 7entra'
-overn$ent.
+egional !oad Despatc5 Centres $+!DC*6
Section 25 of the +'ectricity Act< 2..3 re=uires the 7entra' -overn$ent to $a4e re&iona'
de$arcation of the country for the efficient< econo$ica' and inte&rated trans$ission and
su'y of e'ectricity and in articu'ar to faci'itate vo'untari'y inter!connection and co!
ordination of faci'ities for the inter!State< #e&iona' and inter!re&iona' &eneration and
trans$ission of e'ectricity. 1o ensure inte&rated and ower syste$ in each such re&ion< the
#e&iona' 0oad 2esatch 7entre ::#027; has been envisa&ed as an aeA body. 1he #027 is
resonsib'e inter!a'ia for desatch of e'ectricity within the re&ions< $onitorin& &rid oerations
etc. 1he directions &iven by the #027 for ensurin& &rid stabi'ity etc. are re=uired to be
co$i'ed with by the 'icensees< &eneratin& co$any< &eneratin& stations< sub!stations and any
other erson connected with the oeration of the ower syste$. +rstwhi'e< five ower
re&ions of the country have been constituted under the Act and are bein& entered to by 5
#027s.
State !oad Despatc5 Centres $S!DC*6
7orresondin& to the #027 which oerates at the re&iona' 'eve'< the S027s function at the
State 'eve' with the resonsibi'ity of ensurin& inte&rated oerations of the ower syste$ in
State.
2rievances +edressal For/m and "m7/dsman6
12
1he +'ectricity Act< 2..3 re=uires every distribution 'icensee to estab'ish a foru$ for
#edressa' of -rievances of consu$ers. 9$buds$an is an authority to be aointed or
desi&nated by the State #e&u'atory 7o$$ission to hear and sett'e the non!redressa' of
&rievances at the 'eve' of -rievance #edressa' 8oru$.
Coordination For/m6
1he +'ectricity Act< 2..3 envisa&es constitution of 7oordination 8oru$ both at the 7entra'
and State 'eve' consistin& of 7hairerson and Me$bers of the #e&u'atory 7o$$issions and
other sta4eho'ders 'i4e &eneratin& co$anies< 'icensees. 1he 7oordination 8oru$ is $eant to
ensure s$ooth and coordinated deve'o$ent of the ower syste$ in the country or the State<
as the case $ay be.
For/m o8 +eg/lators6
8oru$ of re&u'ators has been envisa&ed as statutory body under the +'ectricity Act< 2..3.
1he foru$ is to consist of the 7hairerson of the 7entra' 7o$$ission and 7hairersons of
State 7o$$issions.
District !evel Committees6
1he +'ectricity Act< 2..3 rovides for constitution of 2istrict 'eve' 7o$$ittees for
coordination and review of the eAtension of e'ectrification in each districtJ for review of the
=ua'ity of ower su'y and consu$erDs satisfactionJ and for ro$otion of =ua'ity efficiency
and its conservation.
13
Initiatives ta9en 7y 0inistry o8 Po:er
-overn$ent has ta4en severa' $easures to increase rivate invest$ent in the ower
sector. 1he +'ectricity Act< 2..3 contains severa' $easures to attract rivate invest$ent in
the ower sector. -overn$ent has a'so initiated the rocess of refor$s and re!structurin& of
ower sector which wou'd i$rove the finances of the ower uti'ities thereby attractin&
rivate invest$ents sti'' further.
-overn$ent has a'so been assistin& the rivate sector ower ro>ects in achievin&
financia' c'osure. +ncoura&ed by the rovisions of the +'ectricity Act< 2..3< the financia'
institutions have conveyed that there wou'd be no dearth of funds for viab'e ro>ects
i$'e$ented by ro$oters havin& credib'e bac4&round. An Inter!Institutiona' -rou :II-;
co$risin& senior reresentatives fro$ the financia' institutions as we'' as fro$ the Ministry
of Power< has been instru$enta' in faci'itatin& financia' c'osure of 13 rivate ower ro>ects
havin& a tota' caacity of over 44)) M3.
1o faci'itate settin& u of 'ar&e siEed ther$a' ower 'ants in the country and in order
to derive the econo$ies of sca'e< the Ministry of Power has further 'ibera'iEed the $e&a
ower o'icy and with effect fro$ 1.3.2..3< a'' inter!state ro>ects with a caacity of
1...M3 and above for ther$a' and 5..M3 and above for hyde' ro>ects are bein& treated
as $e&a ower ro>ects sub>ect to fu'fi'$ent of the re=uired conditions and wou'd be
eAtended the concession of K@eroD custo$s duty on i$ort of caita' &oods. In order to
ensure that do$estic bidders are not adverse'y affected< rice reference of 15B is bein&
&iven for the do$estic $anufacturers in addition to dee$ed eAort benefits as er the +5IM
o'icy for $e&a ro>ects under ub'ic and rivate sector. In addition< the inco$e taA ho'iday
wou'd be continued with the rovision that the taA ho'iday eriod of 1. years can be c'ai$ed
by a ro$oter in any b'oc4 of 1. years with the first 15 years. 1he State -overn$ents are
re=uested to eAe$t su'ies $ade to $e&a ower 'ants fro$ sa'es taA and 'oca' 'evies.
I. Ma>or 0e&is'ative initiatives
1he +'ectricity Act< 2..3
1he +'ectricity Act< 2..3 rovides a 'ibera' and ro&ressive fra$ewor4 for ower
deve'o$ent. 1he sa'ient features of the Act areC
7entra' -overn$ent to reare a Nationa' +'ectricity Po'icy and 1ariff Po'icy in
consu'tation with State -overn$ents.
A thrust to co$'ete rura' e'ectrification and rovide for $ana&e$ent of rura'
distribution by Panchayats< 7ooerative Societies< non!-overn$ent or&aniEations<
franchisees etc.
-eneration de'icensed and cative &eneration free'y er$itted. 9n'y those hydro
ro>ects which invo've caita' eAenditure eAceedin& a secified 'i$it :resent'y #s.
1... crs. for hydro e'ectric &eneratin& station reared by a &eneratin& co$any
14
se'ected throu&h a rocess of co$etitive biddin& by the co$etent -overn$ent or
-overn$ents; re=uire concurrence fro$ the 7entra' +'ectricity Authority.
1rans$ission ?ti'ity at the 7entra' as we'' as State 'eve'< to be a -overn$ent
co$any!with resonsibi'ity for 'anned and coordinated deve'o$ent of trans$ission
networ4. Provision for rivate trans$ission 'icensees.
9en access in trans$ission fro$ the outset.
2istribution 'icensees wou'd be free to underta4e &eneration and &eneratin&
co$anies wou'd be free to ta4e u distribution 'icensees.
1he State +'ectricity #e&u'atory 7o$$ission is a $andatory re=uire$ent.
No 'icense for &eneration and distribution in the notified rura' areas.
1he S+#7s to er$it oen access in distribution in hases with surchar&e for current
'eve' of cross subsidy to be &radua''y hased out a'on& with cross subsidies.
Provision for ay$ent of subsidy by State -overn$ents throu&h bud&et.
8or rura' and re$ote areas stand a'one syste$s for &eneration and distribution
er$itted.
1radin& as a distinct activity reco&niEed with the safe&uard of the #e&u'atory
7o$$ission bein& authoriEed to fiA cei'in&s on tradin& $ar&ins< if necessary.
1he State -overn$ents have to reor&aniEe the S+Bs.
1he Act does not rescribe any refor$ $ode'< instead rovides f'eAibi'ity in ti$e
fra$e for the urose to the State -overn$ent to choose the $ode' suitin& to their
conditions.
Meterin& of a'' e'ectricity su'ied $ade $andatory.
An Ae''ate 1ribuna' to hear aea's a&ainst the decision of 7+#7 and S+#7s.
Provisions re'atin& to theft of e'ectricity $ade $ore strin&ent
Energy Conservation Act; (&&% and ot5er Demand Side 0anagement 0eas/res
+nacted on 9ctober 1< 2..1< the +ner&y 7onservation Act 'ays down concrete $easures to
ensure efficient use of ener&y and its conservation. 1he Act ca$e into effect on March 1<
2..2. A Bureau of +ner&y +fficiency :B++; has been set u to $a4e wide ran&in&
re&u'ations to further the ob>ectives of the Act. A'so< 7entra' and State -overn$ents have
been e$owered to faci'itate and enforce efficient use of ener&y and its conservation. 1here
are Provisions of ena'ties for fai'ures and on the syste$ of ad>udication.

Standards and 0abe'in& :S%0; have been identified as a 4ey area for ener&y efficiency
i$rove$ent in 'ine with the eAerience of the deve'oed countries.
15
Standards and 7odes :S%7; wou'd be ta4en u for co$$on'y used e=ui$ent in
industries such as u$s< fans< b'owers< co$ressors< boi'ers< etc. +fficiency increases
to the order of 1.B are foreseen in $ost of the industria' e=ui$ent.
Mar4et 2eve'o$ent Mechanis$ inc'udin& Pro>ect 2eve'o$ent wi'' be ta4en u in
the fo''owin& areasC
#ura' a&ricu'tura' substation with rivate $ana&e$ent.
Municia' ( Metro water u$in& efficiency i$rove$ent.
Pro&ra$$e for ener&y efficiency i$rove$ent in -overn$ent bui'din&s<
co$$ercia' bui'din&s< rai'ways< defence estab'ish$ents< etc.
Besides i$'e$entin& the rovision of the Act< a detai'ed Action P'an on 2e$and Side
Mana&e$ent is bein& reared.
II. Po'icy $easures ( initiatives ta4en
Accelerated Po:er Development < +e8orm Programme
1he -ovt. of India aroved Acce'erated Power 2eve'o$ent and #efor$ Pro&ra$$e
:AP2#P; in March 2..3 with a focus on distribution refor$s with fo''owin& ob>ectivesC
o #educe A1%7 'osses
o Brin& about co$$ercia' viabi'ity in the ower sector
o #educe outa&es % interrutions
o Increase consu$er satisfaction
1he ro&ra$$e has an out'ay of #s. 4.<... 7rore as additiona' centra' 'an assistance to
State -overn$ents durin& 1enth five!year 'an. T5e programme 5as t:o components
Investment6
-9I rovides Additiona' 7entra' P'an Assistance to the states for underta4in& ro>ects for
stren&thenin& and u &radation of S1%2 for reduction in technica' % co$$ercia' 'osses %
feeder outa&es and better re'iabi'ity % increased custo$er satisfaction
5.B of the ro>ect cost is rovided as Additiona' 7entra' P'an Assistance in for$ of 5.B
&rant and 5.B 'oan to the state uti'ities. ?ti'ities have to arran&e re$ainin& 5.B of the
ro>ect cost fro$ 8inancia' Institutions 'i4e P87(#+7 or sur'us interna' resources. Secia'
cate&ories states are entit'ed for 1..B assistance in for$ of ,.B &rant and 1.B 'oan :N+
states< F%I< G.P.< ?ttarancha' and Si44i$;.
1he focus is on hi&h!density networ4s i.e. urban centers where invest$ent cou'd 'ead to
substantia'< =uic4 % de$onstrab'e resu'ts. 1he invest$ent co$onent has an e
Aected out'ay of #s. 2.<... 7rore.

o Pro>ects sanctionedC #s. 1)"1,..) 7r.
1"
o No. of ro>ectsC 4,,
o 8unds re'easedC #s. 4112..3 7r.
o 7(Part funds tied uC #s. "233.,2 7r.
o 7(Part funds drawnC #s. 2.44.,, 7r.
o 8unds ?ti'isedC #s. 4)"2.1* 7r.
Incentive6
1his co$onent has been introduced to $otivate the S+Bs(?ti'ities to reduce their financia'
'osses. 8unds are rovided to S+Bs(uti'ities for actua' cash 'oss reduction by way of one for
two $atchin& &rants. 8L 2...!.1 has been fiAed as base year
. +Aected out'ay under the 7o$onent is
o #s. 2.<... 7rore.
1he tota' incentive a$ount re'eased to the States uto Nove$ber< 2..4 is #s.,55.5* crores.
Improvements
M24 States have constituted S+#7s and 1* S+#7s have issued tariff orders.
M, states unbund'ed(cororatised< 2e'hi % 9rissa rivatised their S+Bs. 13 State uti'ities are
eAected to cororatise short'y.
M1..B feeder $eterin& co$'eted in 15 states and 2 states have achieved $ore than ,.B
$eterin&. :9vera'' ,5B a&ainst *1.32B durin& 2..1;
M1..B consu$er $eterin& co$'eted in 4 states and , states have achieved $ore than ,.B
$eterin&. :9vera'' *)B a&ainst ))."B durin& 2..1;
7onsu$er indeAin& started in A.P< 2e'hi< -u>arat< Iarnata4a< M.P.< Maharashtra<
Pun>ab< #a>asthan % ?.P.
8eeder $ana&ers identified by states for increased accountabi'ity< which is he'in& in
reduction of A1%7 'osses.
7o$uterised bi''in& and consu$er co$'aint centres started in se'ected towns of A.P.<
2e'hi< -u>arat< Iarnata4a< Maharashtra< M.P. % ?.P.
Andhra Pradesh< 2e'hi< 3est Ben&a'< Noida ower 7o$any have introduced Gi&h
/o'ta&e 2istribution Syste$ for arrestin& ower i'fera&e.
M8inancia' 0oss reduced by Andhra< Bihar< -oa< -u>arat< Iera'a< M.P.< Maharashtra<
Me&ha'aya< Pun>ab< #a>asthan< 1a$i'nadu< ?.P. and 3est Ben&a'.
MAssa$< -u>arat< Iarnata4a and 9rissa have started handin& over arts of distribution
networ4s to franchisees.
1)
"ne Time Settlement o8 SEs d/es to central /nderta9ings
Most of the S+Bs were in oor financia' hea'th. As a resu't they were not been ab'e to ay for
the ower su'ied to the$. 1heir tota' outstandin& dues to centra' ower uti'ities had risen to
$ore than #s. 41<... 7r. After the 7hief Ministers 7onference in MarchN.1 an +Aert -rou
was constituted. 1he reco$$endations of the +Aert -rou have been endorsed by the
+$owered -rou of 7hief Ministers and have been aroved by the ?nion 7ounci' of
Ministers in March 2..2. 1hus the reco$$endations have been oerationa'ised. As er the
reco$$endations< the outstandin& dues of S+Bs towards 7PS?s have been securitised by
concerned States with the c'ear understandin& that they wi'' ay their current dues. 1his wou'd
he' the State ?ti'ities to c'ean u their boo4s and enab'e the$ to raise resources to fund their
deve'o$ent sche$es. In addition the 7entra' ?ti'ities wou'd a'so be ab'e to $eet the e=uity
re=uire$ents and 'evera&e the$ for their eAansion sche$es. 1he sche$e is $a4in& headway
as a substantia' nu$ber of State -overn$ents have consented to it in the conteAt of $eetin&
their ay$ent ob'i&ations to N1P7< the 7PS? with the 'ar&est accu$u'ated receivab'es fro$
the S+Bs and successor uti'ites. 1he States have been &iven incentives to $a4e it attractive for
the$.
O Environment 0anagement
SeiEed of the current and e$er&in& ressure< both 'oca' and &'oba'< on the front of
environ$ent $ana&e$ent for the e'ectricity sector< the ?nion Ministry of Power has ta4en
a nu$ber of new initiatives in addition to stren&thenin& the eAistin& ones. Secia' Purose
/ehic'e is bein& set u to effect co$ensatory afforestation to faci'itate eAeditious
c'earance fro$ Ministry of +nviron$ent and 8orests :M9+8; for new ower ro>ects. An
M9? in this re&ard with M9+8 is under fina'iEation. An Action P'an on 7'ean
2eve'o$ent Mechanis$ has been aroved and 1+#I has been as4ed to reare a ie'ine
of ro>ects. A 8'y Ash ?ti'iEation Action P'an is roosed to be for$u'ated after discussions
with a'' sta4eho'ders.

Facilitating Private Investment6
No cei'in& on forei&n e=uity articiation in the ower sector.
A'ternative Pay$ent Security Mechanis$ evo'ved to acce'erate Private sector invest$ent
in ower sector.
8inancin& of IPPs 'in4ed to ro&ress of refor$s underta4en by State -ovts.
#e&ardin& rivate invest$ent in ower sector< there is an action 'an to ensure financia'
c'osures of IPPs and this is bein& $onitored by the 7risis #eso'ution -rou chaired by the
?nion Minister for Power and attended by $a>or financia' institutions ( Ministries and
ro$oters of IPPs. 8orei&n 2irect Invest$ent :82I; in trans$ission is bein& encoura&ed
throu&h two routes i.e. Foint /enture :F/; and Indeendent Private 1rans$ission 7o.
:IP17; with secific sche$es havin& been identified under each head.
1*
+ncoura&in& 82I in 1rans$ission ! 1wo routes identified for encoura&in& rivate sector
articiation in trans$ission i.e. F/ and IP17 routes. Secific trans$ission 'ines ( sche$es
identified for eAecution under both the routes.
Internationa' 7onference cu$ Business $eets
1o de'iberate on the critica' issues and to en'ist suort and oti$ise invest$ent in the
ower sector fro$ forei&n and do$estic investors< five internationa' conferences!cu$!
business $eets were he'd throu&h 7II< 8I77I and 7PS?s of the ower sector. 1he areas
on which the conferences were he'd inc'udedC
i. 1rans$ission< +ner&y Mana&e$ent % 7onver&ence
ii. 2istribution
iii. Non fossi' 8ue' -eneration
iv. 9ti$iEin& +Aistin& caacity :#%M;
v. 8ossi' 8ue' -eneration
1he conferences brou&ht to&ether severa' ideas concernin& the entire ran&e of ower
deve'o$ent re'ated issues. 1he business $eets showcased the invest$ent oortunity in
the ower sector. 1he resonse was encoura&in&. As an eAa$'e business oortunities
with on&oin& bids of #s.1*.. crore were offered by NGP7 and 1ehri Gydro 2eve'o$ent
7ororation:1G27;. A'so re!bid conference for Main P'ant Pac4a&e of N1P7 Siat
1her$a' Power Pro>ect offered business worth #s. "<... crore.

Facilitating Captive Po:er Capacity
1he +'ectricity Act< 2..3 free'y a''ows settin& u of cative ower 'ant inc'udin& cative
'ant by &rou of industries.

1he Standin& 7o$$ittee on 1rainin& and 2eve'o$ent has sub$itted its reort on
Nationa' 1rainin& Action P'an for the Power Sector.

A Standin& 7o$$ittee on #esearch and 2eve'o$ent constituted to draw u a ersective
#esearch and 2eve'o$ent 'an for the neAt fifteen years.

A'' househo'ds to be e'ectrified in neAt five years ie. by 2..,.

A 7o$$ittee constituted to study to reduce the cost of de'ivered ower has sub$itted its
reort and is under i$'e$entation.

2eve'oin& broad o'itica' consensus on #efor$s

1he Meetin& of the 7hief Ministers on Power he'd in March 2..1 he'ed in conver&ence of
views not on'y on broad ara$eters but a'so on certain $ethods to be adoted in different
areas of refor$s a'on&with indicative ti$e fra$es. 1he fo''ow u actions have been &oin&
on and the refor$ a&enda has been $ovin& forward. Structura' chan&es have been &iven
$o$entu$ and a'' 22 States have si&ned M9?s under Acce'erated Power 2eve'o$ent %
#efor$ Pro&ra$$e :AP2#P;.
1,

7ountrywide Awareness 7a$ai&n
A Mass ca$ai&n was 'aunched to create &enera' awareness a$on&st the ub'ic on the need
for refor$s in ower sector. More than 2... #oad shows were he'd in the $onths of
9ctober!Nove$ber 2..1 in this re&ard. Students< oinion $a4ers and co$$on consu$ers
were infor$ed and sensitiEed about the need for refor$s< esecia''y distribution refor$s
and chec4in& for ower theft. A very encoura&in& resonse was received fro$ the &rassroot
'eve' fro$ a'' over the country.

III. Ad$inistrative stes underta4en
Pro>ects for$u'ation and i$'e$entation
A 7o$$ittee set u for financin& of ower ro>ects for caacity addition durin& 5
th
and 5I
th
P'ans.
Monitorin& $echanis$ stren&thened with settin& u of Power Pro>ects Monitorin&
7o$$ittee under S. Secy. :Power; for identification of ro>ects< schedu'in& and
$onitorin& the i$'e$entation.
A 7oordination 7o$$ittee for Power set u for c'ose interaction a$on&st the re'ated
Ministries J M9P< MN+S< 2A+< 2ett. of 7oa'

P'an for Nationa' -rid
8or a'' the &eneratin& 'ants 'i4e'y to be co$$issioned durin& the 1.
th
P'an< trans$ission
ro>ects have been identified and in so$e cases are a'ready under eAecution. 1he ob>ective
is to ensure that the inter!re&iona' ower trans$ission caabi'ity increases fro$ the resent
'eve' of 4*5. M3 to 3.<... M3 by year 2.12 and rea'iEe the ob>ectives of Nationa' -rid.

1owards the ob>ective of for$ation of Nationa' -rid< a nu$ber of inter!re&iona' sche$es
have been 'anned for hased deve'o$ent. In order to further stren&then the
interconnection between re&ions< so$e $ore sche$es have been aroved which are under
different sta&es of i$'e$entation and are eAected to be co$$issioned by 2..3.
0oo4in& into the future de$and and avai'abi'ity of &eneration resources< a Persective
1rans$ission P'an has been drawn u indicatin& the $a>or inter!re&iona' trans$ission
hi&hways to be deve'oed by 2.11!12. 1his wi'' u'ti$ate'y 'ead to the for$ation of a stron&
Nationa' -rid. 1hese hi&hways are roosed to be estab'ished in hases $atchin& with the
re=uire$ent of inter!re&iona' ower transfer.
Action P'an for 5
th
'an eriod for$u'ated for #%M of o'd ther$a' and hydro units.
#an4in& Study for PrioritiEin& Gydro Power 2eve'o$ent and other A''ied Measures

A re'i$inary ran4in& study of 3,, hydro sche$es has been reared. 1hese sche$es< with
an a&&re&ate insta''ed caacity of about 1.)<... M3< have been rioritiEed in a'' the siA
#iver Syste$s of the country. 1his wi'' be the docu$ent for basin!wise deve'o$ent of
hydro caacity. 1he o'icy thrust is to i$rove the hydro!ther$a' $iA so as to oti$a''y
$eet the ea4 and base 'oad re=uire$ents. So$e rocedura' i$rove$ents have been
brou&ht about to curtai' the &estation eriod of hydro ro>ects and further i$rove$ents are
under consideration. 1he thrust is to i$rove the hydro!ther$a' $iA so as to oti$a''y $eet
2.
the ea4 and base 'oad re=uire$ents. So$e rocedura' i$rove$ents have been brou&ht
about to curtai' the &estation eriod of hydro ro>ects and further i$rove$ents are under
consideration. 1he Pre'i$inary #an4in& Study has been re'eased on 5th 8ebruary 2..2. 1he
identified otentia' hydroe'ectric sites in the various river basins have been rioritiEed in
the reorts in the order of their attractiveness for i$'e$entation. 1he ran4in& study wou'd
serve as &uide to the otentia' deve'oers to choose hydro sche$es for investi&ations and
i$'e$entation.
2eve'o$ent of $ini hydro and run of river ro>ects Action initiated with MN+S for
deve'o$ent of $ini hydro and run of river ro>ects.

0a=or Policy Initiatives to promote Private Participation
Competitive 7idding 8or A:arding Pro=ectsC 1he initia' batch of ro>ects were awarded
&enera''y on the basis of ne&otiations between the State +'ectricity Board :S+B; and a sin&'e
deve'oer. 3ith effect fro$ 1*.2.1,,5< co$etitive biddin& for award of ower ro>ects to
rivate sector has been $ade $andatory. Gowever< certain cate&ories of ro>ects $entioned
be'ow< where the Internationa' 7o$etitive Biddin& :I7B; route $ay not be feasib'e< have been
eAe$ted fro$ this route. 2etai'ed &uide'ines have a'so been issued to the State -overn$ents
for adotin& co$etitive biddin&.
Setting /p o8 0ega Po:er Pro=ects6 1o faci'itate settin& u of 'ar&e siEed ther$a' ower
'ants in the country and in order to derive the econo$ies of sca'e< the Ministry of Power
issued &uide'ines on 1.th Nove$ber< 1,,5< for settin& u of $e&a ower ro>ects. Power
ro>ects havin& a caacity of 1... M3 or above and su'yin& ower to $ore than one State
were defined as Me&a ro>ects. After considerin& the eAerience of this o'icy< the o'icy
was revised in Nove$ber 1,,*. ?nder the revised o'icy< secific Inter!state and Inter!
re&iona' $e&a ower ro>ects were identified for bein& deve'oed both in the ub'ic as we''
as rivate sector. A Power 1radin& 7o$any:P17; has been estab'ished to urchase ower
fro$ the rivate sector $e&a ro>ects and se'' it to the beneficiary States. 1he o'icy has
been further 'ibera'iEed and with effect fro$ 1.3.2..3< a'' inter!state ro>ects with a caacity
of 1... M3 and above for ther$a' and 5.. M3 and above for hyde' roe>cts are bein&
treated as $e&a ower ro>ects sub>ect to fu'fi''$ent of re=uired ter$s and conditions and
wou'd be eAtended the concessions of K@eroD custo$s duty on i$ort of caita' &oods.
Policy on a/tomatic approval 8or 8oreign direct investmentC Pro>ects for e'ectric
&eneration< trans$ission and distribution er$itted forei&n e=uity articiation u to 1..B
on the auto$atic arova' route.
+evised norms 8or environmental clearanceC 1he fo''owin& de'e&ations have been $ade to
the state &overn$ents in the $atter of environ$ent c'earance to ower ro>ectsC!
:I; A'' co!&eneration 'ants and cative ower 'ants uto 25. M3.
:ii; 7oa' based 'ants uto 5.. M3 usin& f'uidiEed bed techno'o&y sub>ect to sensitive
areas restrictions.
:iii; Power stations uto 25. M3 on conventiona' techno'o&y.
:iv; -as(Nahtha based station uto 5.. M3.
+ela>ation o8 4& ? cap 8or de7t e>pos/re 7y IFIsC 1he o'icy announced in 1,,1
envisa&ed that< an a$ount not eAceedin& 4.B on'y of the tota' out'ay for rivate sector units
$ay co$e fro$ Indian ub'ic financia' institutions :IP8Is;. 1he -overn$ent <subse=uent'y<
21
has decided that whi'e there wi'' be no bar to the eAtent of do$estic debt raised by a ro>ect
deve'oer< sub>ect to the need of $aAi$isin& financin& fro$ eAterna' sources and rudentia'
nor$s eAercised by I8Is< a''owin& a hi&her do$estic debt co$onent for ro>ects which are
deve'oed based on indi&enous'y sourced 'ant and e=ui$ent< wou'd be $ore desirab'e.
Inter Instit/tional 2ro/p6 An Inter Institutiona' -rou :II-; and a K-reen 7hanne'D in the
Ministry of Power was constituted in Fanuary< 2..4 to faci'itate financia' c'osure of rivate
sector ro>ects 'i4e'y to co$e u in the 1enth P'an. 1he II- and K-reen 7hanne'D have
rovided a foru$ for interaction a$on&st ro$oters of ower ro>ects< ban4s and financia'
institutions and the Ministry of Power. 1he II- has been instru$enta' in brin&in& about
seedy financia' c'osure throu&h better coordination with the re'evant a&encies.
22
23
Reforms and Restructuring of Power Sector in States Milestones / Status
Milestones
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T
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1.0 SERC
1.1 SERC
constituted









23
1.2 !erationalisa
tion of SERC.

1"
1.3 #ssuing
Tariff
orders

1"
2.0 Signing of
M$ / M%
wit& M/o
Power
Mont&/date

*+,*-

*+,*-

*.,*-

*+,*+

*-,*-

-*,*/

*0,*-

*+,*-

*/,*0

*0,**

*1,*-

*2,**

*+,*-

*3,*-

*+,*-

*0,*-

*-,*0

*0,**

*2,*-

*-,*-

*+,*-

*/,*-

2'
3.0 $n(undling/
Cor!oratisatio
n
3.1 Reform
ordinance /
)ill*
enactment
-...

0***

0**+

-..1

-...

0***

-..3

0***

-...

+
3.2 $n(undling /
cor!oratisatio
n ,
#m!lementatio
n
*0,..

*1,..

*1,..

*/,.3

*4,**

*-,**

0**-

+
3.3 Pri-atisation
of distri(ution

3.. /istri(ution
Reforms
3...1 Creation of
distri(ution
0ones/
com!anies.

24
25
Electricity Act (&&)
PA+T I
P+E!I0INA+1
S5ort title; e>tent and commencement
%# T5is Act may 7e called t5e Electricity Act; (&&)#
It eAtends to the who'e of India eAcet the State of Fa$$u and Iash$ir.
It sha'' co$e into force on such date as the 7entra' -overn$ent $ay< by notification< aointC
Provided that different dates $ay be aointed for different rovisions of this Act and any reference
in any such rovision to the co$$ence$ent of this Act sha'' be construed as a reference to the
co$in& into force of that rovision.
(# In t5is Act; /nless t5e conte>t ot5er:ise re@/ires;
1. PAe''ate 1ribuna'Q $eans the Ae''ate 1ribuna' for +'ectricity estab'ished under section
11.J
2. Raointed dateR $eans such date as the 7entra' -overn$ent $ay< by notification< aoint
3. Rarea of su'yQ $eans the area within which a distribution 'icensee is authorised by his
'icence to su'y e'ectricityJ
4. RAroriate 7o$$issionQ $eans the 7entra' #e&u'atory 7o$$ission referred to in sub!
section :1; of section )" or the State #e&u'atory 7o$$ission referred to in section *2 or the
Foint 7o$$ission referred to in section *3< as the case $ay be J
5. RAroriate -overn$entR $eans< !
a. the 7entra' -overn$ent< !
i. in resect of a &eneratin& co$any who''y or art'y owned by itJ
ii. in re'ation to any inter!State &eneration< trans$ission< tradin& or su'y of
e'ectricity and with resect to any $ines< oi'!fie'ds< rai'ways< nationa'
hi&hways< airorts< te'e&rahs< broadcastin& stations and any wor4s of
defence< doc4yard< nuc'ear ower insta''ationsJ
iii. in resect of Nationa' 0oad 2esatch 7entreJ and #e&iona' 0oad 2esatch
7entreJ
2"
iv. in re'ation to any wor4s or e'ectric insta''ation be'on&in& to it or under its
contro' J
b. in any other case< the State -overn$ent< havin& >urisdiction under this ActJ
". PAuthority P $eans the 7entra' +'ectricity Authority referred to in sub!section:1; of section
).J
). RBoardR $eans< a State +'ectricity Board< constituted before the co$$ence$ent of this Act<
under sub!section :I; of section 5 of the co$$ence$ent of this Act< under sub!section :I; of
section 5 of the +'ectricity :Su'y; Act< 1,4*J
*. P 7ative &eneratin& 'antQ $eans a ower 'ant set u by any erson to &enerate e'ectricity
ri$ari'y for his own use and inc'udes a ower 'ant set u by any co!oerative society or
association of ersons for &eneratin& e'ectricity ri$ari'y for use of $e$bers of such
cooerative society or associationJ
,. R7entra' 7o$$issionR $eans the 7entra' +'ectricity #e&u'atory 7o$$ission referred to in
sub!section :1; of section )"J
1.. R7entra' 1rans$ission ?ti'ityR $eans any -overn$ent co$any which the 7entra'
-overn$ent $ay notify under sub!section :1; of section 3*J
11. R 7hairersonR $eans the 7hairerson of the Authority or Aroriate 7o$$ission or the
Ae''ate 1ribuna' as the case $ay beJ
12. P 7o&enerationQ $eans a rocess which si$u'taneous'y roduces two or $ore for$s of
usefu' ener&y :inc'udin& e'ectricity;J
13. Rco$anyR $eans a co$any for$ed and re&istered under the 7o$anies Act< 1,5" and
inc'udes any body cororate under a 7entra'< State or Provincia' ActJ
14. RconservationR $eans any reduction in consu$tion of e'ectricity as a resu't of increase in
the efficiency in su'y and use of e'ectricityJ
15. Rconsu$erR $eans any erson who is su'ied with e'ectricity for his own use by a 'icensee
or the -overn$ent or by any other erson en&a&ed in the business of su'yin& e'ectricity to
the ub'ic under this Act or any other 'aw for the ti$e bein& in force and inc'udes any erson
whose re$ises are for the ti$e bein& connected for the urose of receivin& e'ectricity with
the wor4s of a 'icensee< the -overn$ent or such other erson< as the case $ay beJ
1". R 2edicated 1rans$ission 0ines R $eans any e'ectric su'y 'ine for oint to oint
trans$ission which are re=uired for the urose of connectin& e'ectric 'ines or e'ectric 'ants
of a cative &eneratin& 'ant referred to in section , or &eneratin& station referred to in
2)
section 1. to any trans$ission 'ines or sub!stations or &eneratin& stations or the 'oad centre<
as the case $ay beJ
1). Rdistribution 'icenseeR $eans a 'icensee authorised to oerate and $aintain a distribution
syste$ for su'yin& e'ectricity to the consu$ers in his area of su'yJ
1*. Rdistributin& $ainR $eans the ortion of any $ain with which a service 'ine is< or is intended
to be< i$$ediate'y connectedJ
1,. Rdistribution syste$R $eans the syste$ of wires and associated faci'ities between the
de'ivery oints on the trans$ission 'ines or the &eneratin& station connection and the oint of
connection to the insta''ation of the consu$ersJ
2.. Re'ectric 'ineR $eans any 'ine which is used for carryin& e'ectricity for any urose and
inc'udes
a. any suort for any such 'ine< that is to say< any structure< tower< o'e or other thin&
in< on< by or fro$ which any such 'ine is< or $ay be< suorted< carried or susendedJ
and
b. :b; any aaratus connected to any such 'ine for the urose of carryin& e'ectricityJ
21. R+'ectrica' InsectorR $eans a erson aointed as such by the Aroriate -overn$ent
under sub!section :1; of section 1"2 and a'so inc'udes 7hief +'ectrica' InsectorJ
22. Re'ectrica' 'antR $eans any 'ant< e=ui$ent< aaratus or a'iance or any art thereof
used for< or connected with< the &eneration< trans$ission< distribution or su'y of e'ectricity
but does not inc'ude!
a. an e'ectric 'ineJ or
b. a $eter used for ascertainin& the =uantity of e'ectricity su'ied to any re$isesJ or
c. an e'ectrica' e=ui$ent< aaratus or a'iance under the contro' of a consu$erJ
23. Re'ectricityR $eans e'ectrica' ener&y!
a. &enerated< trans$itted< su'ied or traded for any uroseJ or
b. used for any urose eAcet the trans$ission of a $essa&eJ
24. R+'ectricity Su'y 7odeR $eans the +'ectricity Su'y 7ode secified under section 5.J
25. Re'ectricity syste$Q $eans a syste$ under the contro' of a &eneratin& co$any or 'icensee<
as the case $ay be< havin& one or $ore !
2*
a. &eneratin& stationsJ or
b. trans$ission 'inesJ or
c. e'ectric 'ines and sub!stationsJ
and when used in the conteAt of a State or the ?nion< the entire e'ectricity syste$ within the
territories thereofJ
2". Re'ectricity traderR $eans a erson who has been &ranted a 'icence to underta4e tradin& in
e'ectricity under section 12J
2). P franchisee $eans a ersons authorised by a distribution 'icensee to distribute e'ectricity on
its beha'f in a articu'ar area within his area of su'yJ
2*. R&eneratin& co$anyR $eans any co$any or body cororate or association or body of
individua's< whether incororated or not< or artificia' >uridica' erson< which owns or
oerates or $aintains a &eneratin& stationJ
% o8 %AB'
2,. R&enerateR $eans to roduce e'ectricity fro$ a &eneratin& station for the urose of &ivin&
su'y to any re$ises or enab'in& a su'y to be so &ivenJ
3.. R&eneratin& stationR or P stationQ $eans any station for &eneratin& e'ectricity< inc'udin& any
bui'din& and 'ant with ste!u transfor$er< switch yard< switch!&ear< cab'es or other
aurtenant e=ui$ent< if any used for that urose and the site thereof< a site intended to be
used for a &eneratin& station< and any bui'din& used for housin& the oeratin& staff of a
&eneratin& station< and where e'ectricity is oeratin& staff of a &eneratin& station< and where
e'ectricity is &enerated by water!ower< inc'udes enstoc4s< head and tai' wor4s< $ain and
re&u'atin& reservoirs< da$s and other hydrau'ic wor4s< but does not in any case inc'ude any
sub!stationJ
31. P -overn$ent co$anyQ sha'' have the $eanin& assi&ned to it in section "1) of the
7o$anies Act< 1,5"J
32. R&ridR $eans the hi&h vo'ta&e bac4bone syste$ of inter!connected trans$ission 'ines< sub!
stations and &eneratin& 'antsJ
33. R-rid 7odeR $eans the -rid 7ode secified by the 7entra' 7o$$ission under c'ause :h; of
sub!station :1; of section ),J
34. R-rid StandardsR $eans the -rid Standards secified under c'ause :d; of section )3 by the
AuthorityJ
2,
35. Rhi&h vo'ta&e 'ineQ $eans an e'ectric 'ine or cab'e of a no$ina' vo'ta&e as $ay be secified
by the Authority fro$ ti$e to ti$eJ
3". P inter!State trans$ission syste$Q inc'udes !
a. any syste$ for the conveyance of e'ectricity by $eans of $ain trans$ission 'ine fro$
the territory of one State to another StateJ
b. the conveyance of e'ectricity across the territory of an intervenin& State as we'' as
conveyance within the State which is incidenta' to such inter!State trans$ission of
e'ectricityJ
c. the trans$ission of e'ectricity within the territory of a State on a syste$ bui't< owned<
oerated< $aintained or contro''ed by 7entra' 1rans$ission ?ti'ity.
3). P intra !State trans$ission syste$Q $eans any syste$ for trans$ission of e'ectricity other
than an inter!State trans$ission syste$ J
3*. P 'icenceQ $eans a 'icence &ranted under section 14J
3,. P 'icensee P $eans a erson who has been &ranted a 'icence under section 14J
4.. P 'ineQ $eans any wire< cab'e< tube < ie< insu'ator< conductor or other si$i'ar thin&
:inc'udin& its casin& or coatin&; which is desi&ned or adated for use in carryin& e'ectricity
and inc'udes any 'ine which surrounds or suorts< or is surrounded or suorted by or is
insta''ed in c'ose roAi$ity to< or is suorted< carried or susended in association with< any
such 'ineJ
41. P 'oca' authorityQ $eans any Na&ar Panchayat< Municia' 7ounci'< $unicia' cororation<
anchayat constituted at the vi''a&e< inter$ediate and district 'eve's< body or ort
co$$issioners or other authority 'e&a''y entit'ed to< or entrusted by the ?nion or any State
-overn$ent with< the contro' or $ana&e$ent of any area or 'oca' fundJ
42. R$ainQ $eans any e'ectric su'y!SSS 'ine throu&h which e'ectricity is< or is intended to be<
su'ied J
43. RMe$berR $eans the Me$ber of the Aroriate 7o$$ission or Authority or Foint
7o$$ission< or the Ae''ate 1ribuna'< as the case $ay be< and inc'udes the 7hairerson of
such 7o$$ission or $ay be< and inc'udes the 7hairerson of such 7o$$ission or Authority
or ae''ate tribuna'J
44. RNationa' +'ectricity P'anR $eans the Nationa' +'ectricity P'an notified under sub!section :4;
of section 3J
3.
45. P Nationa' 0oad 2esatch 7entreQ $eans the 7entre estab'ished under sub!section :1; of
section 2"J
4". P notificationQ $eans notification ub'ished in the 9fficia' -aEette and the eAression P
notifyQ sha'' be construed accordin&'yJ
4). P oen accessQ $eans the non!discri$inatory rovision for the use of trans$ission 'ines or
distribution syste$ or associated faci'ities with such 'ines or syste$ by any 'icensee or
consu$er or a erson en&a&ed in &eneration in accordance with the re&u'ations secified by
the Aroriate 7o$$issionJ
4*. P overhead 'ineQ $eans an e'ectric 'ine which is 'aced above the &round and in the oen air
but does not inc'ude 'ive rai's of a traction syste$J
4,. P ersonQ sha'' inc'ude any co$any or body cororate or association or body of individua's<
whether incororated or not< or artificia' >uridica' ersonJ
5.. Rower syste$R $eans a'' asects of &eneration< trans$ission< distribution and su'y of
e'ectricity and inc'udes one or $ore of the fo''owin&< na$e'yC!
a. &eneratin& stationsJ
b. trans$ission or $ain trans$ission 'inesJ
c. sub!stationsJ
d. tie!'inesJ
e. 'oad desatch activitiesJ
f. $ains or distribution $ainsJ
&. e'ectric su'y!'inesJ
h. overhead 'inesJ
i. service 'inesJ
>. wor4sJ
51. P re$isesQ inc'udes any 'and< bui'din& or structureJ
52. P rescribedQ $eans rescribed by ru'es $ade by the Aroriate -overn$ent under this
ActJ
53. Rub'ic 'a$R $eans an e'ectric 'a$ used for the 'i&htin& of any streetJ
31
54. Rrea' ti$e oerationR $eans action to be ta4en at a &iven ti$e at which infor$ation about the
e'ectricity syste$ is $ade avai'ab'e to the concerned 0oad 2esatch 7entreJ
55. P #e&iona' Power 7o$$itteeQ $eans a co$$ittee estab'ished by reso'ution by the 7entra'
-overn$ent for a secified re&ion for faci'itatin& the inte&rated oeration of the ower
syste$s in that re&ionJ
5". R#e&iona' 0oad 2esatch 7entreR $eans the centre estab'ished under sub!section :1; of
section 2)J
5). Rre&u'ationsR $eans re&u'ations $ade under this ActJ
A o8 %A%&
B4 o8 %A4C
%4 o8 %AAC
5*. P reea'ed 'awsQ $eans the Indian +'ectricity Act< 1,1.< the +'ectricity :Su'y; Act< 1,4*
and the +'ectricity #e&u'atory 7o$$issions Act< 1,,* reea'ed by section 1*5J
5,. Rru'es R $eans ru'es $ade under this ActJ
".. P schedu'eQ $eans the schedu'e to this ActJ
"1. Rservice!'ineR $eans any e'ectric su'y 'ine throu&h which e'ectricity is< or is intended to
be<su'ied !
a. to a sin&'e consu$er either fro$ a distributin& $ain or i$$ediate'y fro$ the
2istribution 0icenseeNs re$isesJ or
b. fro$ a distributin& $ain to a &rou of consu$ers on the sa$e re$ises or on
conti&uous re$ises su'ied fro$ the sa$e oint of the distributin& $ainJ
"2. RsecifiedR $eans secified by re&u'ations $ade by the Aroriate 7o$$ission or the
Authority< as the case $ay be< under this ActJ
"3. P stand a'one syste$Q $eans the e'ectricity syste$ set u to &enerate ower and distribute
e'ectricity in a secified area without connection to the &ridJ
"4. RState 7o$$issionR $eans the State +'ectricity #e&u'atory 7o$$ission constituted under
sub!section :1; of section *2 and inc'udes a Foint 7o$$ission constituted under sub!section
:1; of section *3J
"5. RState -rid 7odeR $eans the State -rid 7ode referred under c'ause :h; of sub!section :1; of
section *"J
32
"". RState 0oad 2esatch 7entreR $eans the centre estab'ished under subsection :1; of section
31J
"). RState 1rans$ission ?ti'ityR $eans the Board or the -overn$ent co$any secified as such
by the State -overn$ent under sub!section :1; of section 3,J
"*. RstreetR inc'udes any way< road< 'ane< s=uare< court< a''ey< assa&e or oen sace< whether a
thorou&hfare or not< over which the ub'ic have a ri&ht of way< and a'so the roadway and
footway over any ub'ic brid&e or causewayJ
",. Rsub!stationR $eans a station for transfor$in& or convertin& e'ectricity for the trans$ission
or distribution thereof and inc'udes transfor$ers< converters< switch&ears< caacitors<
synchronous condensers< structures< cab'e and other aurtenant e=ui$ent and any
bui'din&s used for that urose and the site thereofJ
).. Rsu'yR< in re'ation to e'ectricity< $eans the sa'e of e'ectricity to a 'icensee or consu$erJ
)1. Rtradin&R $eans urchase of e'ectricity for resa'e thereof and the eAression RtradeR sha'' be
construed accordin&'yJ
)2. P trans$ission 'inesR $eans a'' hi&h ressure cab'es and overhead 'ines :not bein& an
essentia' art of the distribution syste$ of a 'icensee; trans$ittin& e'ectricity fro$ a
&eneratin& station to another &eneratin& station or a sub!station< to&ether with any ste!u
and ste!down transfor$ers< switch!&ear and other wor4s necessary to and used for the
contro' of such cab'es or overhead 'ines< and such bui'din&s or art thereof as $ay be
re=uired to acco$$odate such transfor$ers< switch&ear and other wor4sJ
)3. Rtrans$ission 'icenseeQ $eans a 'icensee authorised to estab'ish or oerate trans$ission
'inesJ
)4. Rtrans$itR $eans conveyance of e'ectricity by $eans of trans$ission 'ines and the
eAression Rtrans$issionR sha'' be construed accordin&'yJ
)5. Ruti'ityR $eans the e'ectric 'ines or e'ectrica' 'ant< and inc'udes a'' 'ands< bui'din&s< wor4s
and $ateria's attached thereto be'on&in& to any erson actin& as a &eneratin& co$any or
'icensee under the rovisions of this ActJ
)". Rwhee'in&R $eans the oeration whereby the distribution syste$ and associated faci'ities of a
trans$ission 'icensee or distribution 'icensee< as the case $ay be< are used by another erson
for the conveyance of e'ectricity on ay$ent of char&es to be deter$ined under section "2J
)). Rwor4sR inc'udes e'ectric 'ine< and any bui'din&< 'ant< $achinery< aaratus and any other
thin& of whatever descrition re=uired to trans$it< distribute or su'y e'ectricity to the
33
ub'ic and to carry into effect the ob>ects of a 'icence or sanction &ranted under this Act or
any other 'aw for the ti$e bein& in force.

PA+T II
NATI"NA! E!ECT+ICIT1 P"!IC1 AND P!AN
National Electricity Policy and Plan
)#
1. 1he 7entra' -overn$ent sha''< fro$ ti$e to ti$e< reare the nationa' e'ectricity o'icy and
tariff o'icy< in consu'tation with the State -overn$ents and the Authority for deve'o$ent
of the ower syste$ based on oti$a' uti'isation of resources such as coa'< natura' &as<
nuc'ear substances or $ateria's< hydro and renewab'e sources of ener&y.
2. 1he 7entra' -overn$ent sha'' ub'ish Nationa' +'ectricity Po'icy and tariff o'icy fro$ ti$e
to ti$e.
3. 1he 7entra' -overn$ent $ay< fro$ ti$e to ti$e< in consu'tation with the State -overn$ents
and the Authority< review or revise< the Nationa' +'ectricity Po'icy and tariff o'icy referred
to in sub!section :1; .
4. 1he Authority sha'' reare a Nationa' +'ectricity P'an in accordance with the Nationa'
+'ectricity Po'icy and notify such 'an once in five yearsC . Provided that the Authority in
rearin& the Nationa' +'ectricity P'an sha'' ub'ish the draft Nationa' +'ectricity P'an and
invite su&&estions and ob>ections thereon fro$ 'icensees< &eneratin& co$anies and the
ub'ic within such ti$e as $ay be rescribedC
Provided 8/rt5er t5at t5e A/t5ority s5all 3
a. notify the 'an after obtainin& the arova' of the 7entra' -overn$entJ
b. revise the 'an incororatin& therein the directions< if any< &iven by the 7entra'
-overn$ent whi'e &rantin& arova' under c'ause :a;.
5. 1he Authority $ay review or revise the Nationa' +'ectricity P'an in accordance with the
Nationa' +'ectricity Po'icy.
National policy on stand alone systems 8or r/ral areas and nonconventional energy systems#
4. 1he 7entra' -overn$ent sha''< after consu'tation with the State -overn$ents< reare and notify
a nationa' o'icy< er$ittin& stand a'one syste$s :inc'udin& those based on renewab'e sources of
ener&y and non!conventiona' sources of ener&y ; for rura' areas.
National policy on electri8ication and local distri7/tion in r/ral areas#
5. 1he 7entra' -overn$ent sha'' a'so for$u'ate a nationa' o'icy< in consu'tation with the State
-overn$ents and the State 7o$$issions< for rura' e'ectrification and for bu'4 urchase of ower
and $ana&e$ent of 'oca' distribution in rura' areas throu&h Panchayat Institutions< usersD
associations< co!oerative socities< non! -overn$enta' or&anisations or franchisees.
34
"7ligations to s/pply electricity to r/ral areas#
". 1he Aroriate -overn$ent sha'' endeavour to su'y e'ectricity to a'' areas inc'udin& vi''a&es
and ha$'ets.
PA+T III
2ENE+ATI"N "F E!ECT+ICIT1
2enerating Company and re@/irement 8or setting /p o8 generating station
). Any &eneratin& co$any $ay estab'ish< oerate and $aintain a &eneratin& station without
obtainin& a 'icence under this Act if it co$'ies with the technica' standards re'atin& to connectivity
with the &rid referred to in c'ause :b; of section )3.
Dydro3electric generation
C#
1. Notwithstandin& anythin& contained in section )< any &eneratin& co$any intendin& to set!
u a hydro!&eneratin& station sha'' reare and sub$it to the Authority for its concurrence< a
sche$e esti$ated to invo've a caita' eAenditure eAceedin& such su$< as $ay be fiAed by
the 7entra' -overn$ent< fro$ ti$e to ti$e< by notification.
2. 1he Authority sha''< before concurrin& in any sche$e sub$itted to it under sub!section :1;
have articu'ar re&ard to< whether or not in its oinion<!
a. the roosed river!wor4s wi'' re>udice the rosects for the best u'ti$ate
deve'o$ent of the river or its tributaries for ower &eneration< consistent with the
re=uire$ents of drin4in& water< irri&ation< navi&ation< f'ood!contro'< or other ub'ic
uroses< and for this urose the Authority sha'' satisfy itse'f< after consu'tation with
the State -overn$ent< the 7entra' -overn$ent< or such other a&encies as it $ay
dee$ aroriate< that an ade=uate study has been $ade of the oti$u$ 'ocation of
da$s and other river!wor4sJ
b. the roosed sche$e $eets< the nor$s re&ardin& da$ desi&n and safety.
3. 3here a $u'ti!urose sche$e for the deve'o$ent of any river in any re&ion is in
oeration< the State -overn$ent and the &eneratin& co$any sha'' co!ordinate their
activities with the activities of the erson resonsib'e for such sche$e in so far as they are
inter!re'ated.
Captive 2eneration
A#
1. Notwithstandin& anythin& contained in this Act< a erson $ay construct< $aintain or oerate
a cative &eneratin& 'ant and dedicated trans$ission 'inesC Provided that the su'y of
35
e'ectricity fro$ the cative &eneratin& 'ant throu&h the &rid sha'' be re&u'ated in the sa$e
$anner as the &eneratin& station of a &eneratin& co$any.
2. +very erson< who has constructed a cative &eneratin& 'ant and $aintains and oerates
such 'ant< sha'' have the ri&ht to oen access for the uroses of carryin& e'ectricity fro$
his cative &eneratin& 'ant to the destination of his useC Provided that such oen access sha''
be sub>ect to avai'abi'ity of ade=uate trans$ission faci'ity and such avai'abi'ity of
trans$ission faci'ity sha'' be deter$ined by the 7entra' 1rans$ission ?ti'ity or the State
1rans$ission ?ti'ity< as the case $ay beC Provided further that any disute re&ardin& the
avai'abi'ity of trans$ission faci'ity sha'' be ad>udicated uon by the Aroriate
7o$$ission.
D/ties o8 2enerating Companies
%&#
1. Sub>ect to the rovisions of this Act< the duties of a &eneratin& co$any sha'' be to estab'ish<
oerate and $aintain &eneratin& stations< tie!'ines< sub!stations and dedicated trans$ission
'ines connected therewith in accordance with the rovisions of this Act or the ru'es or
re&u'ations $ade thereunder.
2. A &eneratin& co$any $ay su'y e'ectricity to any 'icensee in accordance with this Act and
the ru'es and re&u'ations $ade thereunder and $ay< sub>ect to the re&u'ations $ade under
sub!section :2; of section 42< su'y e'ectricity to any consu$er.
3. +very &eneratin& co$any sha''
a. sub$it technica' detai's re&ardin& its &eneratin& stations to the Aroriate
7o$$ission and the AuthorityJ
b. co!ordinate with the 7entra' 1rans$ission ?ti'ity or the State 1rans$ission ?ti'ity< as
the case $ay be< for trans$ission of the e'ectricity &enerated by it.
Direction to generating companies
%%#
1. 1he Aroriate -overn$ent $ay secify that a &eneratin& co$any sha''< in eAtraordinary
circu$stances oerate and $aintain any &eneratin& station in accordance with the directions
of that -overn$ent. +A'anation. ! 8or the uroses of this section< the eAression P
eAtraordinary circu$stancesQ $eans circu$stances arisin& out of threat to security of the
State< ub'ic order or a natura' ca'a$ity or such other circu$stances arisin& in the ub'ic
interest.
2. 1he Aroriate 7o$$ission $ay offset the adverse financia' i$act of the directions
referred to in sub!section :1; on any &eneratin& co$any in such $anner as it considers
aroriate.
3"
3)
PA+T I.
!ICENSIN2
A/t5orised persons to transmit;s/pply;etc#;electricity
12.No erson sha''
a. trans$it e'ectricityJ or
b. distribute e'ectricityJ or
c. underta4e tradin& in e'ectricity<
un'ess he is authorised to do so by a 'icence issued under section 14< or is eAe$t under section 13.
Po:er to e>empt
%)#
1he Aroriate 7o$$ission $ay< on the reco$$endations< of the Aroriate -overn$ent< in
accordance with the nationa' o'icy for$u'ated under section 5 and in ub'ic interest< direct< by
notification that sub>ect to such conditions and restrictions< if any< and for such eriod or eriods< as
$ay be secified in the notification< the rovisions of section 12 sha'' not a'y to any 'oca'
authority< Panchayat Institution< usersD association< co!oerative societies< non&overn$enta'
or&aniEations< or franchiseesC
2rant o8 !icence
%4#
1he Aroriate 7o$$ission $ay< on a'ication $ade to it under section 15< &rant any erson
'icence to any erson !
a. to trans$it e'ectricity as a trans$ission 'icenseeJ or
b. to distribute e'ectricity as a distribution 'icenseeJ or
c. to underta4e tradin& in e'ectricity as an e'ectricity trader<
in any area which $ay be secified in the 'icenceC Provided that any erson en&a&ed in the business
of trans$ission or su'y of e'ectricity under the rovisions of the reea'ed 'aws or any Act
secified in the Schedu'e on or before the aointed date sha'' be dee$ed to be a 'icensee under this
Act for such eriod as $ay be stiu'ated in the 'icence< c'earance or arova' &ranted to hi$ under
the reea'ed 'aws or such Act secified in the Schedu'e< and the rovisions of the reea'ed 'aws or
such Act secified in the Schedu'e in resect of such 'icence sha'' a'y for a eriod of one year
fro$ the date of co$$ence$ent of this Act or such ear'ier eriod as $ay be secified< at the re=uest
of the 'icensee< by the Aroriate 7o$$ission and thereafter the rovisions of this Act sha'' a'y
to such businessC Provided further that the 7entra' 1rans$ission ?ti'ity or the State 1rans$ission
?ti'ity sha'' be dee$ed to be a trans$ission 'icensee under this ActC Provided a'so that in case an
3*
Aroriate -overn$ent trans$its e'ectricity or distributes e'ectricity or underta4es tradin& in
e'ectricity< whether before or after the co$$ence$ent of this Act< such -overn$ent sha'' be dee$ed
to be a 'icensee under this Act< but sha'' not be re=uired to obtain a 'icence under this ActC
%4 o8 %A4C
Provided a'so that the 2a$odar /a''ey 7ororation< estab'ished under sub!section :1; of section 3 of
the 2a$odar /a''ey 7ororation Act< 1,4*< sha'' be dee$ed to be a 'icensee under this Act but sha''
not be re=uired to obtain a 'icence under this Act and the rovisions of the 2a$odar /a''ey
7ororation Act< 1,4*< in so far as they are not inconsistent with the rovisions of this Act< sha''
continue to a'y to that 7ororationC Provided a'so that the -overn$ent co$any or the co$any
referred to in sub!section :2; of section 131 of this Act and the co$any or co$anies created in
ursuance of the Acts secified in the Schedu'e< sha'' be dee$ed to be a 'icensee under this ActC
Provided a'so that the Aroriate 7o$$ission $ay &rant a 'icence to two or $ore ersons for
distribution of e'ectricity throu&h their own distribution syste$ within the sa$e area< sub>ect to the
conditions that the a'icant for &rant of 'icence within the sa$e area< sub>ect to the conditions that
the a'icant for &rant of 'icence within the sa$e area sha''< without re>udice to the other conditions
or re=uire$ents under this Act< co$'y with the additiona' re=uire$ents :inc'udin& the caita'
ade=uacy< credit!worthiness< or code of conduct; as $ay be rescribed by the 7entra' -overn$ent<
and no such a'icant who co$'ies with a'' the re=uire$ents for &rant of 'icence< sha'' be refused
&rant of 'icence on the &round that there a'ready eAists a 'icensee in the sa$e area for the sa$e
uroseC Provided a'so that in a case where a distribution 'icensee rooses to underta4e distribution
of e'ectricity for a secified area within his area of su'y throu&h another erson< that erson sha''
not be re=uired to obtain any searate 'icence fro$ the concerned State 7o$$ission and such
distribution 'icensee sha'' be resonsib'e for distribution of e'ectricity in his area of su'yC Provided
a'so that where a erson intends to &enerate and distribute e'ectricity in a rura' area to be notified by
the State -overn$ent< such erson sha'' not re=uire any 'icence for such &eneration and distribution
of e'ectricity< but he sha'' co$'y with the $easures which $ay be secified by the Authority under
section 53C Provided a'so that a distribution 'icensee sha'' not re=uire a 'icence to underta4e tradin&
in e'ectricity.
Proced/re 8or 2rant o8 !icence
%B#
1. +very a'ication under section 14 sha'' be $ade in such for$ and in such $anner as $ay be
secified by the Aroriate 7o$$ission and sha'' be acco$anied by such fee as $ay be
rescribed.
2. Any erson who has $ade an a'ication for &rant of 'icence sha''< within seven days after
$a4in& such a'ication< ub'ish a notice of his a'ication with such articu'ars and in such
$anner as $ay be secified and a 'icence sha'' not be &ranted !
i. unti' the ob>ections< if any< received by the Aroriate 7o$$ission in resonse to
ub'ication of the a'ication have been considered by itC Provided that no ob>ection
sha'' be so considered un'ess it is received before the eAiration of thirty days fro$
the date of the ub'ication of such notice as aforesaidJ
ii. unti'< in the case of an a'ication for a 'icence for an area inc'udin& the who'e or any
art of any canton$ent< aerodro$e< fortress< arsena'< doc4yard or ca$ or of any
bui'din& or 'ace in the occuation of the -overn$ent for defence uroses< the
3,
Aroriate 7o$$ission has ascertained that there is no ob>ection to the &rant of the
'icence on the art of the 7entra' -overn$ent.
3. A erson intendin& to act as a trans$ission 'icensee sha''< i$$ediate'y on $a4in& the
a'ication< forward a coy of such a'ication to the 7entra' 1rans$ission ?ti'ity or the
State 1rans$ission ?ti'ity< as the case $ay be.
4. 1he 7entra' 1rans$ission ?ti'ity or the State 1rans$ission ?ti'ity< as the case $ay be< sha''<
within thirty days after the receit of the coy of the a'ication referred to in sub!section
:3;< send its reco$$endations< if any< to the Aroriate 7o$$issionC Provided that such
reco$$endations sha'' not be bindin& on the 7o$$ission.
5. Before &rantin& a 'icence under section 14< the Aroriate 7o$$ission sha'' !
a. ub'ish a notice in two such dai'y newsaers< as that 7o$$ission $ay consider
necessary< statin& the na$e of the erson to who$ it rooses to issue the 'icenceJ
b. consider a'' su&&estions or ob>ections and the reco$$endations< if any< of the 7entra'
1rans$ission ?ti'ity or State 1rans$ission ?ti'ity< as the case $ay be.
2. 3here a erson $a4es an a'ication under sub!section :1; of section 14 to act as a 'icensee<
the Aroriate 7o$$ission sha''< as far as racticab'e< within ninety days after receit of
such a'ication< !
a. issue a 'icence sub>ect to the rovisions of this Act and the ru'es and re&u'ations $ade
thereunderJ or
b. re>ect the a'ication for reasons to be recorded in writin& if such a'ication does
not confor$ to the rovisions of this Act or the ru'es and re&u'ations $ade thereunder
or the rovisions of any other 'aw for the ti$e bein& in forceC Provided that no
a'ication sha'' be re>ected un'ess the a'icant has been &iven an oortunity of
bein& heard.
3. 1he Aroriate 7o$$ission sha''< i$$ediate'y after issue of 'icence< forward a coy of the
'icence to the Aroriate -overn$ent < Authority< 'oca' authority< and to such other erson
as the Aroriate 7o$$ission considers necessary.
4. A 'icence sha'' continue to be in force for a eriod of twentyfive years un'ess such 'icence is
revo4ed.
Conditions o8 licence#
%'#
1he Aroriate 7o$$ission $ay secify any &enera' or secific conditions which sha'' a'y
either to a 'icensee or c'ass of 'icensees and such conditions sha'' be dee$ed to be conditions of such
'icenceC Provided that the Aroriate 7o$$ission sha''< within one year fro$ the aointed date<
secify any &enera' or secific conditions of 'icence a'icab'e to the 'icensees referred to in the
first< second< third< fourth and fifth rovisos to section 14 after the eAiry of one year fro$ the
co$$ence$ent of this Act.
!icensee not to do certain t5ings#
%E#
1. No 'icensee sha''< without rior arova' of the Aroriate 7o$$ission< !
4.
a. underta4e any transaction to ac=uire by urchase or ta4eover or otherwise< the uti'ity
of any other 'icenseeJ or
b. $er&e his uti'ity with the uti'ity of any other 'icenseeC Provided that nothin&
contained in this sub!section sha'' a'y if the uti'ity of the 'icensee is situate in a
State other than the State in which the uti'ity referred to in c'ause :a; or c'ause :b; is
situate.
2. +very 'icensee sha''< before obtainin& the arova' under subsection :1;< &ive not 'ess than
one $onthDs notice to every other 'icensee who trans$its or distributes< e'ectricity in the area
of such 'icensee who a'ies for such arova'.
3. No 'icensee sha'' at any ti$e assi&n his 'icence or transfer his uti'ity< or any art thereof< by
sa'e< 'ease < eAchan&e or otherwise without the rior arova' of the Aroriate
7o$$ission.
4. Any a&ree$ent re'atin& to any transaction secified in subsection
:1; or sub!section :3;< un'ess $ade with< the rior arova' of the
Aroriate 7o$$ission< sha'' be void.
Amendment o8 licence
%C#
1. 3here in its oinion the ub'ic interest so er$its< the Aroriate 7o$$ission< $ay< on the
a'ication of the 'icensee or otherwise< $a4e such a'terations and a$end$ents in the ter$s
and conditions of a 'icence as it thin4s fitC #evocation of 'icence Provided that no such
a'terations or a$end$ents sha'' be $ade eAcet with the consent of the 'icensee un'ess such
consent has< in the oinion of the Aroriate 7o$$ission< been unreasonab'y withhe'd.
2. Before any a'terations or a$end$ents in the 'icence are $ade under this section< the
fo''owin& rovisions sha'' have effect< na$e'yC !
a. where the 'icensee has $ade an a'ication under sub!section :1; roosin& any
a'teration or $odifications in his 'icence< the 'icensee sha'' ub'ish a notice of such
a'ication with such articu'ars and in such $anner as $ay be secifiedJ
b. in the case of an a'ication roosin& a'terations or $odifications in the area of
su'y co$risin& the who'e or any art of any canton$ent< aerodro$e< fortress<
arsena'< doc4yard or ca$ or of any bui'din& or 'ace in the occuation of the
-overn$ent for defence uroses< the Aroriate 7o$$ission sha'' not $a4e any
a'terations or $odifications eAcet with the consent of the 7entra' -overn$entJ
c. where any a'terations or $odifications in a 'icence are roosed to be $ade otherwise
than on the a'ication of the 'icensee< the Aroriate 7o$$ission sha'' ub'ish the
roosed a'terations or $odifications with such articu'ars and in such $anner as
$ay be secifiedJ
d. the Aroriate 7o$$ission sha'' not $a4e any a'terations or $odification un'ess a''
su&&estions or ob>ections received within thirty days fro$ the date of the first
ub'ication of the notice have been considered.
+evocation o8 licence
%A#
41
1. If the Aroriate 7o$$ission< after $a4in& an en=uiry< is satisfied that ub'ic interest so
re=uires< it $ay revo4e a 'icence in any of the fo''owin& cases< na$e'yC !
a. where the 'icensee< in the oinion of the Aroriate 7o$$ission< $a4es wi'fu' and
ro'on&ed defau't in doin& anythin& re=uired of hi$ by or under this Act or the ru'es
or re&u'ations $ade thereunderJ
b. where the 'icensee brea4s any of the ter$s or conditions of his 'icence the breach of
which is eAress'y dec'ared by such 'icence to render it 'iab'e to revocationJ
c. where the 'icensee fai's< within the eriod fiAed in this beha'f by his 'icence< or any
'on&er eriod which the Aroriate 7o$$ission $ay have &ranted therefor 6
i. to show< to the satisfaction of the Aroriate 7o$$ission< that he is in a
osition fu''y and efficient'y to dischar&e the duties and ob'i&ations i$osed
on hi$ by his 'icenceJ or 15 Sa'e of uti'ities of 'icensees. and ob'i&ations
i$osed on hi$ by his 'icenceJ or
ii. to $a4e the deosit or furnish the security< or ay the fees or other char&es
re=uired by his 'icenceJ
d. where in the oinion of the Aroriate 7o$$ission the financia' osition of the
'icensee is such that he is unab'e fu''y and efficient'y to dischar&e the duties and
ob'i&ations i$osed on hi$ by his 'icence.
2. 3here in its oinion the ub'ic interest so re=uires< the Aroriate 7o$$ission $ay< on
a'ication< or with the consent of the 'icensee< revo4e his 'icence as to the who'e or any art
of his area of distribution or trans$ission or tradin& uon such ter$s and conditions as it
thin4s fit.
3. No 'icence sha'' be revo4ed under sub!section :1; un'ess the Aroriate 7o$$ission has
&iven to the 'icensee not 'ess than three $onthsDnotice< in writin&< statin& the &rounds on
which it is roosed to revo4e the 'icence< and has considered any cause shown by the
'icensee within the eriod of that notice< a&ainst the roosed revocation.
4. 1he Aroriate 7o$$ission $ay< instead of revo4in& a 'icence under sub!section :1;<
er$it it to re$ain in force sub>ect to such further ter$s and conditions as it thin4s fit to
i$ose< and any further ter$s or conditions so i$osed sha'' be bindin& uon and be
observed by the 'icensee and sha'' be of 'i4e force and effect as if they were contained in the
'icence.
5. 3here the 7o$$ission revo4es a 'icence under this section< it sha'' serve a notice of
revocation uon the 'icensee and fiA a date on which the revocation sha'' ta4e effect.
". 3here an Aroriate 7o$$ission has &iven notice for revocation of 'icence under sub!
section :5;< without re>udice to any ena'ty which $ay be i$osed or rosecution
roceedin& which $ay be initiated under this Act< the 'icensee $ay< after rior arova' of
that 7o$$ission< se'' his uti'ity to any erson who is found e'i&ib'e by that 7o$$ission for
&rant of 'icence.
Sale o8 /tilities o8 licensees#
(&#
42
1. 3here the Aroriate 7o$$ission revo4es under section 1, the 'icence of any 'icensee <
the fo''owin& rovisions sha'' a'y< na$e'yC!
a. the Aroriate 7o$$ission sha'' invite a'ications for ac=uirin& the uti'ity of the
'icensee whose 'icence has been revo4ed and deter$ine which of such a'ications
shou'd be acceted< ri$ari'y on the basis of the hi&hest and best rice offered for the
uti'ityJ
b. the Aroriate 7o$$ission $ay< by notice in writin&< re=uire the 'icensee to se'' his
uti'ity and thereuon the 'icensee sha'' se'' his uti'ity to the erson :hereafter in this
section referred to as the P urchaserQ ; whose a'ication has been acceted by that
7o$$issionJ
c. a'' the ri&hts< duties< ob'i&ations and 'iabi'ities of the 'icensee< on and fro$ the date of
revocation of 'icence or on and fro$ the date< if ear'ier< on which the uti'ity of the
'icensee is so'd to a urchaser< sha'' abso'ute'y cease eAcet for any 'iabi'ities which
have accrued rior to that dateJ
d. the Aroriate 7o$$ission $ay $a4e such interi$ arran&e$ents in re&ard to the
oeration of the uti'ity as $ay be considered aroriate inc'udin& the aoint$ent
ofconsidered aroriate inc'udin& the aoint$ent of Ad$inistratorsJ
e. 1he Ad$inistrator aointed under c'ause :d; sha'' eAercise such owers and
dischar&e such functions as the Aroriate 7o$$ission $ay direct.
2. 3here a uti'ity is so'd under sub!section :1;< the urchaser sha'' ay to the 'icensee the
urchase rice of the uti'ity in such $anner as $ay be a&reed uon.
3. 3here the Aroriate 7o$$ission issues any notice under subsection :1; re=uirin& the
'icensee to se'' the uti'ity< it $ay< by such notice< re=uire the 'icensee to de'iver the uti'ity<
and thereuon the 'icensee sha'' de'iver on a date secified in the notice< the uti'ity to the
desi&nated urchaser on ay$ent of the urchase rice thereof.
4. 3here the 'icensee has de'ivered the uti'ity referred to in subsection: 3; to the urchaser but
its sa'e has not been co$'eted by the date fiAed in the notice issued under that sub!section<
the Aroriate 7o$$ission $ay< if it dee$s fit< er$it the intendin& urchaser to oerate
and $aintain the uti'ity syste$ endin& the co$'etion of the sa'e.
.esting o8 /tility in p/rc5aser
(%#
3here a uti'ity is so'd under section 2. or section 24< then< uon co$'etion of the sa'e or on the
date on which the uti'ity is de'ivered to the intendin& urchaser< as the case $ay be< whichever is
ear'ier!
a. the uti'ity sha'' vest in the urchaser or the intendin& urchaser< as the case $ay be< free fro$
any debt< $ort&a&e or si$i'ar ob'i&ation of the 'icensee or attachin& to the uti'ityC Provided
that any such debt< $ort&a&e or si$i'ar ob'i&ation sha'' attach to the urchase $oney in
substitution for the uti'ityJ and
b. the ri&hts< owers< authorities< duties and ob'i&ations of the 'icensee under his 'icence sha''
stand transferred to the urchaser and such urchaser sha'' be dee$ed to be the 'icensee.
43
Provisions :5ere no p/rc5ase ta9es place
((#
1. :1; If the uti'ity is not so'd in the $anner rovided under section 2. or section 24< the
Aroriate 7o$$ission $ay< to rotect the interest of consu$ers or in ub'ic interest< issue
such directions or for$u'ate such sche$e as it $ay dee$ necessary for oeration of the
uti'ity.
2. 3here no directions are issued or sche$e is for$u'ated by the Aroriate 7o$$ission
under sub!section :1;< the 'icensee referred to in section 2. or section 24 $ay disose of the
uti'ity in such $anner as it $ay dee$ fitC Provided that< if the 'icensee does not disose of
the uti'ity< within a eriod of siA $onths fro$ the date of revocation under section 2. or
section 24< the Aroriate 7o$$ission $ay cause the wor4s of the 'icensee in< under< over<
a'on&< or across any street or ub'ic 'and to be re$oved and every such street or ub'ic 'and
to be reinstated< and recover the cost of such re$ova' and reinstate$ent fro$ the 'icensee.
Directions to licensees#
()#
If the Aroriate 7o$$ission is of the oinion that it is necessary or eAedient so to do for
$aintainin& the efficient su'y< securin& the e=uitab'e distribution of e'ectricity and ro$otin&
co$etition< it $ay< by order< rovide for re&u'atin& su'y< distribution< consu$tion or use
thereof.
S/spension o8 distri7/tion licence and sale o8 /tility#
(4#
1. If at any ti$e the Aroriate 7o$$ission is of the oinion that a distribution 'icensee 6
a. has ersistent'y fai'ed to $aintain uninterruted su'y of e'ectricity confor$in& to
standards re&ardin& =ua'ity of e'ectricity to the consu$ersJ or
b. is unab'e to dischar&e the functions or erfor$ the duties i$osed on it by or under
the rovisions of this ActJ or
c. has ersistent'y defau'ted in co$'yin& with any direction &iven by the Aroriate
7o$$ission under this ActJ or
d. has bro4en the ter$s and conditions of 'icence<
and circu$stances eAist which render it necessary for it in ub'ic interest so to do< the
Aroriate 7o$$ission $ay< for reasons to be recorded in writin&< susend< for a eriod
not eAceedin& one year< the 'icence of the distribution 'icensee and aoint an Ad$inistrator
to dischar&e the functions of the distribution 'icensee in accordance with the ter$s and
conditions of 'icenceC
Provided that before susendin& a 'icence under this section< the Aroriate 7o$$ission
sha'' &ive a reasonab'e oortunity to the distribution 'icensee to $a4e reresentations
a&ainst the roosed susension of 'icense and sha'' consider the reresentations< if any< of
the distrbution 'icensee.
44
2. ?on susension of 'icense under sub!section :1; the uti'ities of the distribution 'icensee
sha'' vest in the Ad$inistrator for a eriod not eAceedin& one year or u to the date on which
such uti'ity is so'd in accordance with the rovisions contained in section 2.< whichever is
'ater.
3. 1he Aroriate 7o$$ission sha''< within one year of aoint$ent of the Ad$inistrator
under sub!section :1; either revo4e the 'icence in accordance with the rovisions contained in
section 1, or revo4e susension of the 'icence and restore the uti'ity to the distribution
'icensee whose 'icence had been susended< as the case $ay be.
4. In case where the Aroriate 7o$$ission revo4es the 'icence under sub!section :3;< the
uti'ity of the distribution 'icensee sha'' be so'd within a eriod of one year fro$ the date of
revocation of the 'icence in accordance with the rovisions of section 2. and the rice after
deductin& the ad$inistrative and other eAenses on sa'e of uti'ities be re$itted to the
distribution 'icensee.
PA+T .
T+ANS0ISSI"N "F E!ECT+ICIT1
45
Inter-State transmission
Inter3State; regional and Inter3+egional transmission#
(B#
8or the uroses of this Part< the 7entra' -overn$ent $ay< $a4e re&ionwise de$arcation of the
country< and< fro$ ti$e to ti$e< $a4e such $odifications therein as it $ay consider necessary for
the efficient< econo$ica' and inte&rated trans$ission and su'y of e'ectricity< and in articu'ar to
faci'itate vo'untary interconnections and co!ordination of faci'ities for the inter!State< re&iona' and
interre&iona' &eneration and trans$ission of e'ectricity.
National !oad Despatc5 Centre#
('#
1. 1he 7entra' -overn$ent $ay estab'ish a centre at the nationa' 'eve'< to be 4nown as the
Nationa' 0oad 2esatch 7entre for oti$u$ schedu'in& and desatch of e'ectricity a$on&
the #e&iona' 0oad 2esatch 7entres.
2. 1he constitution and functions of the Nationa' 0oad 2esatch 7entre sha'' be such as $ay be
rescribed by the 7entra' -overn$entC Provided that the Nationa' 0oad 2esatch 7entre
sha'' not en&a&e in the business of tradin& in e'ectricity.
3. 1he Nationa' 0oad 2esatch 7entre sha'' be oerated by a -overn$ent co$any or any
authority or cororation estab'ished or constituted by or under any 7entra' Act< as $ay be
notified by the 7entra' -overn$ent.
Constit/tion o8 +egional !oad Despatc5 Centre#
(E#
1. 1he 7entra' -overn$ent sha'' estab'ish a centre for each re&ion to be 4nown as the #e&iona'
0oad 2esatch 7entre havin& territoria' >urisdiction as deter$ined by the 7entra'
-overn$ent in accordance with section 25 for the uroses of eAercisin& the owers and
dischar&in& the ower and dischar&in& the functions under this Part.
2. 1he #e&iona' 0oad 2esatch 7entre sha'' be oerated by a -overn$ent 7o$any or any
authority or cororation estab'ished or constituted by or under any 7entra' Act< as $ay be
notified by the 7entra' -overn$entC
Provided that unti' a -overn$ent co$any or authority or cororation referred to in this sub!section
is notified by the 7entra' -overn$ent< the 7entra' 1rans$ission ?ti'ity sha'' oerate the #e&iona'
0oad 2esatch 7entreC
Provided further that no #e&iona' 0oad 2esatch 7entre sha'' en&a&e in the business of &eneration
of e'ectricity or tradin& in e'ectricity.
4"
F/nctions o8 +egional !oad Despatc5 Centre#
(C#
1. 1he #e&iona' 0oad 2esatch 7entre sha'' be the aeA body to ensure inte&rated oeration of
the ower syste$ in the concerned re&ion.
2. 1he #e&iona' 0oad 2esatch 7entre sha'' co$'y with such rinci'es< &uide'ines and
$ethodo'o&ies in resect of the whee'in& and oti$u$ schedu'in& and desatch of e'ectricity
as the 7entra' 7o$$ission $ay secify in the -rid 7ode.
3. 1he #e&iona' 0oad 2esatch 7entre sha'' !
a. be resonsib'e for oti$u$ schedu'in& and desatch of e'ectricity within the re&ion<
in accordance with the contracts entered into with the 'icensees or the &eneratin&
co$anies oeratin& in the re&ionJ
b. $onitor &rid oerationsJ
c. 4ee accounts of the =uantity of e'ectricity trans$itted throu&h the re&iona' &ridJ
d. eAercise suervision and contro' over the inter!State trans$ission syste$J and
e. be resonsib'e for carryin& out rea' ti$e oerations for &rid contro' and desatch of
e'ectricity within the re&ion throu&h secure and econo$ic oeration of the re&iona'
&rid in accordance with the -rid Standards and the -rid 7ode.
4. 1he #e&iona' 0oad 2esatch 7entre $ay 'evy and co''ect such fee and char&es fro$ the
&eneratin& co$anies or 'icensees en&a&ed in inter!State trans$ission of e'ectricity as $ay
be secified by the 7entra' 7o$$ission.
Compliance o8 directions#
(A#
1. 1he #e&iona' 0oad 2esatch 7entre $ay &ive such directions and eAercise such suervision
and contro' as $ay be re=uired for ensurin& stabi'ity of &rid oerations and for achievin& the
$aAi$u$ econo$y and efficiency in the oeration of the ower syste$ in the re&ion under
its contro'.
2. +very 'icensee< &eneratin& co$any< &eneratin& station< substation and any other erson
connected with the oeration of the ower syste$ sha'' co$'y with the direction issued by
the #e&iona' 0oad 2esatch 7entres under sub!section :1;.
3. A'' directions issued by the #e&iona' 0oad 2esatch 7entres to any trans$ission 'icensee of
State trans$ission 'ines or any other 'icensee of the State or &eneratin& co$any :other than
those connected to inter State trans$ission syste$; or sub!station in the State sha'' be issued
throu&h the State 0oad 2esatch 7entre and the State 0oad 2esatch 7entres sha'' ensure
4)
that such directions are du'y co$'ied with the 'icensee or &eneratin& co$any or sub!
station.
4. 1he #e&iona' Power 7o$$ittee in the re&ion $ay< fro$ ti$e to ti$e< a&ree on $atters
concernin& the stabi'ity and s$ooth oeration of the inte&rated &rid and econo$y and
efficiency in the oeration of the ower syste$ in that re&ion.
5. If any disute arises with reference to the =ua'ity of e'ectricity or safe< secure and inte&rated
oeration of the re&iona' &rid or in re'ation to any direction &iven under sub!section :1;< it
sha'' be referred to the 7entra' 7o$$ission for decision C Provided that endin& the decision
of the 7entra' 7o$$ission< the directions of the #e&iona' 0oad 2esatch 7entre sha'' be
co$'ied with by the State 0oad 2esatch 7entre or the 'icensee or the &eneratin& co$any<
as the case $ay be.
". If any 'icensee< &eneratin& co$any or any other erson fai's to co$'y with the directions
issued under sub!section :2; or sub!section :3;< he sha'' be 'iab'e to ena'ty not eAceedin&
ruees fifteen 'acs.
Intra-State transmission
Transmission :it5in a State
)&#
1he State 7o$$ission sha'' faci'itate and ro$ote trans$ission< whee'in& and inter!connection
arran&e$ents within its territoria' >urisdiction for the trans$ission and su'y of e'ectricity by
econo$ica' and efficient uti'isation of the e'ectricity.
Constit/tion o8 State !oad Despatc5 Centres
)%#
1. 1he State -overn$ent sha'' estab'ish a 7entre to be 4nown as the State 0oad 2esatch
7entre for the uroses of eAercisin& the owers and dischar&in& the functions under this
Part.
2. 1he State 0oad 2esatch 7entre sha'' be oerated by a -overn$ent co$any or any
authority or cororation estab'ished or constituted -overn$ent co$any or any authority or
cororation estab'ished or constituted by or under any State Act< as $ay be notified by the
State -overn$ent.
Provided that unti' a -overn$ent co$any or any authority or cororation is notified by the State
-overn$ent< the State 1rans$ission ?ti'ity sha'' oerate the State 0oad 2esatch 7entreC
Provided further that no State 0oad 2esatch 7entre sha'' en&a&e in the business of tradin& in
e'ectricity.
4*
F/nctions o8 State !oad Despatc5 Centres
)(#
1. 1he State 0oad 2esatch 7entre sha'' be the aeA body to ensure inte&rated oeration of the
ower syste$ in a State.
2. 1he State 0oad 2esatch 7entre sha'' !
a. be resonsib'e for oti$u$ schedu'in& and desatch of e'ectricity within a State< in
accordance with the contracts entered into with the 'icensees or the &eneratin&
co$anies oeratin& in that StateJ
b. $onitor &rid oerationsJ
c. 4ee accounts of the =uantity of e'ectricity trans$itted throu&h the State &ridJ
d. eAercise suervision and contro' over the intra!state trans$ission syste$J and
e. be resonsib'e for carryin& out rea' ti$e oerations for &rid contro' and desatch of
e'ectricity within the State throu&h secure and econo$ic oeration of the State &rid in
accordance with the -rid Standards and the State -rid 7ode.
3. 1he State 0oad 2esatch 7entre $ay 'evy and co''ect such fee and char&es fro$ the
&eneratin& co$anies and 'icensees en&a&ed in intra!State trans$ission of e'ectricity as $ay
be secified by the State 7o$$ission.
Compliance o8 directions
))#
1. 1he State 0oad 2esatch 7entre in a State $ay &ive such directions and eAercise such
suervision and contro' as $ay be re=uired for ensurin& the inte&rated &rid oerations and
for achievin& the $aAi$u$ econo$y and efficiency in the oeration of ower syste$ in that
State.
2. +very 'icensee< &eneratin& co$any< &eneratin& station< substation and any other erson
connected with the oeration of the ower syste$ sha'' co$'y with the direction issued by
the State 0oad 2eatch 7entre under subsection :1;.
3. 1he State 0oad 2esatch 7entre sha'' co$'y with the directions of the #e&iona' 0oad
2esatch 7entre.
4. If any disute arises with reference to the =ua'ity of e'ectricity or safe< secure and inte&rated
oeration of the State &rid or in re'ation to any direction &iven under sub!section :1; < it sha''
be referred to the State 7o$$ission for decisionC Provided that endin& the decision of the
State 7o$$ission< the direction of the State 0oad 2esatch 7entre sha'' be co$'ied with by
the 'icensee or &eneratin& co$any.
4,
5. If any 'icensee< &eneratin& co$any or any other erson fai's to co$'y with the directions
issued under sub!section:1;< he sha'' be 'iab'e to ena'ty not eAceedin& ruees five 'acs.
Other provisions relating to transmission
2rid Standards
)4
+very trans$ission 'icensee sha'' co$'y with such technica' standards< of oeration and
$aintenance of trans$ission 'ines< in accordance with the -rid Standards< as $ay be secified by
the Authority.
Intervening transmission 8acilities#
)B#
1he Aroriate 7o$$ission $ay< on an a'ication by any 'icensee< by order re=uire any other
'icensee ownin& or oeratin& intervenin& trans$ission faci'ities to rovide the use of such faci'ities
to the eAtent of sur'us caacity avai'ab'e with such 'icensee.
Provided that any disute re&ardin& the eAtent of sur'us caacity avai'ab'e with the 'icensee< sha''
be ad>udicated uon by the Aroriate 7o$$ission.
C5arges 8or intervening transmission 8acilities#
)'#
1. +very 'icensee sha''< on an order $ade under section 35< rovided his intervenin&
trans$ission faci'ities at rates< char&es and ter$s and conditions as $ay be $utua''y a&reed
uon C Provided that the Aroriate 7o$$ission $ay secify rates< char&es and ter$s and
conditions if these cannot be $utua''y a&reed uon by the 'icensees.
2. 1he rates< char&es and ter$s and conditions referred to in subsection :1; sha'' be fair and
reasonab'e< and $ay be a''ocated in roortion to the use of such faci'ities.
+A'anation. ! 8or the uroses of section 35 and 3"< the eAression P intervenin& trans$ission
faci'itiesQ $eans the e'ectric 'ines owned or oerated by a 'icensee where such e'ectric 'ines can be
uti'ised for trans$ittin& e'ectricity for and on beha'f of another 'icensee at his re=uest and on
ay$ent of a tariff or char&e.
Direction 7y appropriate 2overnment#
)E#
1he Aroriate -overn$ent $ay issue directions to the #e&iona' 0oad 2esatch 7entres or State
0oad 2esatch 7entres< as the case $ay be< to ta4e such $easures as $ay be necessary for
$aintainin& s$ooth and stab'e trans$ission and su'y of e'ectricity to any re&ion or State.
5.
Central Transmission ,tility and 8/nctions#
)C#
1. 1he 7entra' -overn$ent $ay notify any -overn$ent co$any as the 7entra' 1rans$ission
?ti'ityC Provided that the 7entra' 1rans$ission ?ti'ity sha'' not en&a&e in the business of
&eneration of e'ectricity or tradin& in e'ectricity
% o8 %AB'
Provided further that< the 7entra' -overn$ent $ay transfer< and vest any roerty< interest in
roerty< ri&hts and 'iabi'ities connected with< and ersonne' invo'ved in trans$ission of
e'ectricity of such 7entra' 1rans$ission ?ti'ity< to a co$any or co$anies to be
incororated under the 7o$anies Act< 1,5" to function as a trans$ission 'icensee< throu&h a
transfer sche$e to be effected in the $anner secified under Part 5III and such co$any or
co$anies sha'' be dee$ed to be trans$ission 'icensees under this Act.
2. 1he functions of the 7entra' 1rans$ission ?ti'ity sha'' be !
a. to underta4e trans$ission of e'ectricity throu&h inter!State trans$ission syste$J
b. to dischar&e a'' functions of 'annin& and co!ordination re'atin& to inter!state
trans$ission syste$ with !
i. State 1rans$ission ?ti'itiesJ
ii. 7entra' -overn$entJ
iii. State -overn$entsJ
iv. &eneratin& co$aniesJ
v. #e&iona' Power 7o$$itteesJ
vi. ; AuthorityJ
vii. 'icenseesJ
viii. any other erson notified by the 7entra' -overn$ent in this beha'fJ
c. to ensure deve'o$ent of an efficient< co!ordinated and econo$ica' syste$ of inter!
State trans$ission 'ines for s$ooth f'ow of e'ectricity fro$ &eneratin& stations to the
'oad centresJ
d. to rovide non!discri$inatory oen access to its trans$ission syste$ for use by!
i. any 'icensee or &eneratin& co$any on ay$ent of the trans$ission char&esJ
or
51
ii. any consu$er as and when such oen access is rovided by the State
7o$$ission under sub!section :2; of section 42< on ay$ent of the
trans$ission char&es and a surchar&e thereon< as $ay be secified by the
7entra' 7o$$issionC
Provided that such surchar&e sha'' be uti'ised for the urose of $eetin& the
re=uire$ent of current 'eve' cross!subsidyC
Provided further that such surchar&e and cross subsidies sha'' be
ro&ressive'y reduced and e'i$inated in the $anner as $ay be secified by
the 7entra' 7o$$issionC
Provided a'so that such surchar&e $ay be 'evied ti'' such ti$e the cross
subsidies are not e'i$inatedC
Provided a'so that the $anner of ay$ent and uti'isation of the surchar&e
sha'' be secified by the 7entra' 7o$$issionC
Provided a'so that such surchar&e sha'' not be 'eviab'e in case oen access is
rovided to a erson who has estab'ished a cative &eneratin& 'ant for
carryin& the e'ectricity to the destination of his own use.
State Transmission ,tility and 8/nctions
)A#
1. 1he State -overn$ent $ay notify the Board or a -overn$ent co$any as the State
1rans$ission ?ti'ityC
Provided that the State 1rans$ission ?ti'ity sha'' not en&a&e in the business of tradin& in
e'ectricityC
Provided further that the State -overn$ent $ay transfer< and vest any roerty< interest in
roerty< ri&hts and 'iabi'ities connected with< and ersonne' invo'ved in trans$ission of
e'ectricity< of such State 1rans$ission ?ti'ity< to a co$any or co$anies to be incororated
under the 7o$anies Act< 1,5" to function as trans$ission 'icensee throu&h a transfer
sche$e to be effected in the function as trans$ission 'icensee throu&h a transfer sche$e to
be effected in the $anner secified under Part 5III and such co$any or co$anies sha'' be
dee$ed to be trans$ission 'icensees under this Act.
2. 1he functions of the State 1rans$ission ?ti'ity sha'' be !
a. to underta4e trans$ission of e'ectricity throu&h intra!State trans$ission syste$J
b. to dischar&e a'' functions of 'annin& and co!ordination re'atin& to intra!state
trans$ission syste$ with !
i. 7entra' 1rans$ission ?ti'ityJ
52
ii. State -overn$entsJ
iii. &eneratin& co$aniesJ
iv. #e&iona' Power 7o$$itteesJ
v. AuthorityJ
vi. 'icenseesJ
vii. any other erson notified by the State -overn$ent in this beha'fJ
c. to ensure deve'o$ent of an efficient< co!ordinated and econo$ica' syste$ of intra!
State trans$ission 'ines for s$ooth f'ow of e'ectricity fro$ a &eneratin& station to the
'oad centresJ
d. to rovid non!discri$inatory oen access to its trans$ission syste$ for use by!
i. any 'icensee or &eneratin& co$any on ay$ent of the trans$ission char&es J
or
ii. any consu$er as and when such oen access is rovided by the State
7o$$ission under sub!section :2; of section 42< on ay$ent of the
trans$ission char&es and a surchar&e thereon< as $ay be secified by the
State 7o$$issionC
Provided that such surchar&e sha'' be uti'ised for the urose of $eetin& the
re=uire$ent of current 'eve' cross!subsidyC
Provided further that such surchar&e and cross subsidies sha'' be
ro&ressive'y reduced and e'i$inated in the $anner as $ay be secified by
the State 7o$$issionC
Provided a'so that such surchar&e $ay be 'evied ti'' such ti$e the cross
subsidies are not e'i$inatedC
Provided a'so that the $anner of ay$ent and uti'isation of the surchar&e
sha'' be secified by the State 7o$$ission.
Provided a'so that such surchar&e sha'' not be 'eviab'e in case oen access is
rovided to a erson who has estab'ished a cative &eneratin& 'ant for
carryin& the e'ectricity to the destination of his own use.
D/ties o8 Transmission licensees
4&#
53
It sha'' be the duty of a trans$ission 'icensee !
a. to bui'd< $aintain and oerate an efficient< co!ordinated and econo$ica' inter!State
trans$ission syste$ or intra!State trans$ission econo$ica' inter!State trans$ission syste$
or intra!State trans$ission syste$< as the case $ay beJ
b. to co$'y with the directions of the #e&iona' 0oad 2esatch 7entre and the State 0oad
2esatch 7entre as the $ay beJ.
c. to rovide non!discri$inatory oen access to its trans$ission syste$ for use by!
i. any 'icensee or &eneratin& co$any on ay$ent of the trans$ission char&esJ or
ii. any consu$er as and when such oen access is rovided by the State 7o$$ission
under sub!section :2; of section 42< on ay$ent of the trans$ission char&es and a
surchar&e thereon< as $ay be secified by the State 7o$$issionC
Provided that such surchar&e sha'' be uti'ised for the urose of $eetin& the
re=uire$ent of current 'eve' cross!subsidyC
Provided further that such surchar&e and cross subsidies sha'' be ro&ressive'y
reduced and e'i$inated in the $anner as $ay be secified by the Aroriate
7o$$issionC
Provided a'so that such surchar&e $ay be 'evied ti'' such ti$e the cross subsidies are
not e'i$inatedC Provided a'so that the $anner of ay$ent and uti'isation of the
surchar&e sha'' be secified by the Aroriate 7o$$issionC
Provided a'so that such surchar&e sha'' not be 'eviab'e in case oen access is rovided
to a erson who has estab'ished a cative &eneratin& 'ant for carryin& the e'ectricity
to the destination of his own use.
"t5er 7/siness o8 Transmission !icensee
4%#
A trans$ission 'icensee $ay< with rior inti$ation to the Aroriate 7o$$ission < en&a&e in any
business for oti$u$ uti'isation of its assetsC
Provided that a roortion of the revenues derived fro$ such business sha''< as $ay be secified by
the Aroriate 7o$$ission< be uti'ised for reducin& its char&es for trans$ission and whee'in&C
Provided further that the trans$ission 'icensee sha'' $aintain searate accounts for each such
business underta4in& to ensure that trans$ission business neither subsidies in any way such business
underta4in& nor encu$bers its trans$ission assets in any way to suort such businessC
54
Provided a'so that no trans$ission 'icensee sha'' enter into any contract or otherwise en&a&e in the
business to in tradin& e'ectricity C

55
PA+T .%
DIST+I,TI"N "F E!ECT+ICIT1
Provisions with respect to distribution licensees
D/ties o8 distri7/tion !icensee and open access
4(#
1. It sha'' be the duty of a distribution 'icensee to deve'o and $aintain an efficient< co!
ordinated and econo$ica' distribution syste$ in his area of su'y and to su'y e'ectricity
in accordance with the rovisions contained in this Act.
2. 1he State 7o$$ission sha'' introduce oen access in such hases and sub>ect to such
conditions< :inc'udin& the cross subsidies< and other oerationa' constraints; as $ay be
secified within one year of the aointed date by it and in secifyin& the eAtent of oen
access in successive hases and in deter$inin& the char&es for whee'in&< it sha'' have due
re&ard to a'' re'evant factors inc'udin& such cross subsidies< and other oerationa'
constraintsC Provided that such oen access $ay be a''owed before the cross subsidies are
e'i$inated on ay$ent of a surchar&e in addition to the char&es for whee'in& as $ay be
deter$ined by the State 7o$$ission C Provided further that such surchar&e sha'' be uti'ised
to $eet the re=uire$ents of current 'eve' of cross subsidy within the area of su'y of the
distribution 'icensee C Provided a'so that such surchar&e and cross subsidies sha'' be
ro&ressive'y reduced and e'i$inated in the $anner as $ay be secified by the State
7o$$issionC Provided a'so that such surchar&e sha'' not be 'eviab'e in case oen access is
rovided to a erson who has estab'ished a cative &eneratin& 'ant for carryin& the
e'ectricity to the destination of his own use.
3. 3here any erson< whose re$ises are situated within the area of su'y of a distribution
'icensee< :not bein& a 'oca' authority en&a&ed in the business of distribution of e'ectricity
before the aointed date; re=uires a su'y of e'ectricity fro$ a &eneratin& co$any or any
'icensee other than such distribution 'icensee< such erson $ay< by notice< re=uire the
distribution 'icensee for whee'in& such e'ectricity in accordance with re&u'ations $ade by the
State 7o$$ission and the duties of the distribution 'icensee with resect to such su'y sha''
be of a co$$on carrier rovidin& non!discri$inatory oen access .
4. 3here the State 7o$$ission er$its a consu$er or c'ass of consu$ers to receive su'y of
e'ectricity fro$ a erson other than the distribution 'icensee of his area of su'y< such
consu$er sha'' be 'iab'e to ay an additiona' surchar&e on the char&es of whee'in&< as $ay
be secified by the State 7o$$ission< to $eet the fiAed cost of such distribution 'icensee
arisin& out of his ob'i&ation to su'y.
5"
5. +very distribution 'icensee sha''< within siA $onths fro$ the aointed date or date of &rant
of 'icence< whichever is ear'ier< estab'ish a foru$ for redressa' of &rievances of the
consu$ers in accordance with the &uide'ines as $ay be secified by the State 7o$$ission.
". Any consu$er< who is a&&rieved by non!redressa' of his &rievances under sub!section :5;<
$ay $a4e a reresentation for the redressa' of his &rievance to an authority to be 4nown as
9$buds$an to be aointed or desi&nated by the State 7o$$ission.
). 1he 9$buds$an sha'' sett'e the &rievance of the consu$er within such ti$e and in such
$anner as $ay be secified by the State 7o$$ission.
*. 1he rovisions of sub!sections :5;<:"; and :); sha'' be without re>udice to ri&ht which the
consu$er $ay have aart fro$ the ri&hts conferred uon hi$ by those sub!sections.
D/ty to s/pply on re@/est
4)#
1. +very distribution 'icensee< sha''< on an a'ication by the owner or occuier of any
re$ises< &ive su'y of e'ectricity to such re$ises< within one $onth after receit of the
a'ication re=uirin& such su'y C
Provided that where such su'y re=uires eAtension of distribution $ains< or co$$issionin&
of new sub!stations< the distribution 'icensee sha'' su'y the e'ectricity to such re$ises
i$$ediate'y after such eAtension or co$$issionin& or within such eriod as $ay be
secified b co$$issionin& or within such eriod as $ay be secified by the Aroriate
7o$$ission.
Provided further that in case of a vi''a&e or ha$'et or area wherein no rovision for su'y of
e'ectricity eAists< the Aroriate 7o$$ission $ay eAtend the said eriod as it $ay consider
necessary for e'ectrification of such vi''a&e or ha$'et or area.
2. It sha'' be the duty of every distribution 'icensee to rovide< if re=uired< e'ectric 'ant or
e'ectric 'ine for &ivin& e'ectric su'y to the re$ises secified in sub!section :1; C
Provided that no erson sha'' be entit'ed to de$and< or to continue to receive< fro$ a 'icensee
a su'y of e'ectricity for any re$ises havin& a searate su'y un'ess he has a&reed with
the 'icensee to ay to hi$ such rice as deter$ined by the Aroriate 7o$$ission .
3. If a distribution 'icensee fai's to su'y the e'ectricity within the eriod secified in sub!
section :1;< he sha'' be 'iab'e to a ena'ty which $ay eAtend to one thousand ruees for each
day of defau't.
E>ceptions 8rom d/ty to s/pply electricity#
44#
5)
Nothin& contained in section 43 sha'' be ta4en as re=uirin& a distribution 'icensee to &ive su'y of
e'ectricity to any re$ises if he is revented fro$ doin& so by cyc'one< f'oods< stor$s or other
occurrences beyond his contro'.
Po:er to recover c5arges
4B#
1. Sub>ect to the rovisions of this section< the rices to be char&ed by a distribution 'icensee
for the su'y of e'ectricity by hi$ in ursuance of section 43 sha'' be in accordance with
such tariffs fiAed fro$ ti$e to ti$e and conditions of his 'icence.
2. 1he char&es for e'ectricity su'ied by a distribution 'icensee sha'' be !
a. fiAed in accordance with the $ethods and the rinci'es as $ay be secified by the
concerned State 7o$$ission J
b. ub'ished in such $anner so as to &ive ade=uate ub'icity for such char&es and
rices.
3. 1he char&es for e'ectricity su'ied by a distribution 'icensee $ay inc'ude !
a. a fiAed char&e in addition to the char&e for the actua' e'ectricity su'iedJ
b. a rent or other char&es in resect of any e'ectric $eter or e'ectrica' 'ant rovided by
the distribution 'icensee.
4. Sub>ect to the rovisions of section "2< in fiAin& char&es under this section a distribution
'icensee sha'' not show undue reference to any erson or c'ass of ersons or discri$ination
a&ainst any erson or c'ass of ersons.
5. 1he char&es fiAed by the distribution 'icensee sha'' be in accordance with the rovisions of
this Act and the re&u'ations $ade in this beha'f by the concerned State 7o$$ission.
Po:er to recover e>pendit/re
4'#
1he State 7o$$ission $ay< by re&u'ations< authorise a distribution 'icensee to char&e fro$ a erson
re=uirin& a su'y of e'ectricity in ursuance of section 43 any eAenses reasonab'y incurred in
rovidin& any e'ectric 'ine or e'ectrica' 'ant used for the urose of &ivin& that su'y.
Po:er to re@/ire sec/rity#
4E#
1. Sub>ect to the rovisions of this section< a distribution 'icensee $ay re=uire any erson< who
re=uires a su'y of e'ectricity in ursuance of section 43< to &ive hi$ reasonab'e security< as
deter$ined by re&u'ations< for the ay$ent to hi$ of a'' $onies which $ay beco$e due to
hi$ !
5*
a. in resect of the e'ectricity su'ied to such ersonsJ or
b. where any e'ectric 'ine or e'ectrica' 'ant or e'ectric $eter is to be rovided for
su'yin& e'ectricity to erson< in resect of the rovision of such 'ine or 'ant or
$eter< and if that erson fai's to &ive such security< the distribution 'icensee $ay< if he
thin4s fit< refuse to &ive the su'y or to rovide the 'ine or 'ant or $eter for the
eriod durin& which the fai'ure continues.
2. 3here any erson has not &iven such security as is $entioned in subsection :1; or the
security &iven by any erson has beco$e inva'id or insufficient< the distribution 'icensee
$ay< by notice< re=uire that erson< within thirty days after the service of the notice< to &ive
hi$ reasonab'e security for the ay$ent of a'' $onies which $ay beco$e due to hi$ in
resect of the su'y of e'ectricity or rovision of such 'ine or 'ant or $eter.
3. If the erson referred to in sub!section:2; fai's to &ive such security< the distribution 'icensee
$ay< if he thin4s fit< discontinue the su'y of e'ectricity for the eriod durin& which the
fai'ure continues.
4. 1he distribution 'icensee sha'' ay interest e=uiva'ent to the ban4 rate or $ore< as $ay be
secified by the concerned State 7o$$ission< on the security referred to in sub!section :1;
and refund such security on the re=uest of the erson who &ave such security.
5. A distribution 'icensee sha'' not be entit'ed to re=uire security in ursuance of c'ause :a; of
sub!section :1; if the erson re=uirin& the su'y is reared to ta4e the su'y throu&h a
re!ay$ent $eter.
Additional terms o8 s/pply#
4C#
A distribution 'icensee $ay re=uire any erson who re=uires a su'y of e'ectricity in ursuance of
section 43 to accet !
a. any restrictions which $ay be i$osed for the urose of enab'in& the distribution 'icensee
to co$'y with re&u'ations $ade under section 53J
b. any ter$s restrictin& any 'iabi'ity of the distribution 'icensee for econo$ic 'oss resu'tin&
fro$ ne&'i&ence of the erson to who$ the e'ectricity is su'ied.
Agreements :it5 respect to s/pply or p/rc5ase o8 electricity#
4A#
5,
3here the Aroriate 7o$$ission has a''owed oen access to certain consu$ers under section 42<
such consu$ers notwithstandin& the rovisions contained in c'ause :d; of sub!section :1; of section
"2< $ay enter into an a&ree$ent with any erson for su'y or urchase of e'ectricity on such ter$s
and conditions :inc'udin& tariff; as $ay be a&reed uon by the$.
T5e Electricity S/pply Code#
B&#
1he State 7o$$ission sha'' secify an +'ectricity Su'y 7ode to rovide for recovery of e'ectricity
char&es< interva's for bi''in& of e'ectricity char&es disconnection of su'y of e'ectricity for non!
ay$ent thereofJ restoration of su'y of e'ectricityJ ta$erin&< distress or da$a&e to e'ectrica'
'ant< e'ectric 'ines or $eter< entry of distribution 'icensee or any erson actin& on his beha'f for
disconnectin& su'y and re$ovin& the $eterJ entry for re'acin&< a'terin& or $aintainin& e'ectric
'ines or e'ectrica' 'ant or $eter.
"t5er 7/sinesses o8 distri7/tion licensees#
B%#
1. A distribution 'icensee $ay< with rior inti$ation to the Aroriate 7o$$ission< en&a&e in
any other business for oti$u$ uti'isation of its assetsC
Provided that a roortion of the revenues derived fro$ such business sha''< as $ay be
secified by the concerned State 7o$$ission< be uti'ised for reducin& its char&es for
whee'in& C
Provided further that the distribution 'icensee sha'' $aintain searate accounts for each such
business underta4in& to ensure that distribution business neither subsidies in any way such
business underta4in& nor encu$bers its distribution assets in any way to suort such
business. Provided a'so that nothin& contained in this section sha'' a'y to a 'oca' authority
en&a&ed< before the co$$ence$ent of this Act< in the business of distribution of e'ectricity
Provisions with respect to electricity traders
Provisions :it5 respect to electricity trader#
B(#
1. 3ithout re>udice to the rovisions contained in c'ause :c; of section 12< the Aroriate
7o$$ission $ay< secify the technica' re=uire$ent< caita' ade=uacy re=uire$ent and credit
worthiness for bein& an e'ectricity trader.
2. +very e'ectricity trader sha'' dischar&e such duties< in re'ation to su'y and tradin& in
e'ectricity< as $ay be secified by the Aroriate 7o$$ission.
Provisions with respect to supply generally
".
Provisions relating to sa8ety and electricity s/pply
B)#
1. 1he Authority $ay in consu'tation with the State -overn$ent< secify suitab'e $easures for
6
a. rotectin& the ub'ic :inc'udin& the ersons en&a&ed in the &eneration< trans$ission or
distribution or tradin&; fro$ dan&ers arisin& fro$ the &eneration< trans$ission or distribution
or tradin& of e'ectricity< or use of e'ectricity su'ied or insta''ation< $aintenance or use of
any e'ectric 'ine or e'ectrica' 'antJ
b. e'i$inatin& or reducin& the ris4s of ersona' in>ury to any erson< or da$a&e to roerty of
any erson or interference with use of such roerty J
c. rohibitin& the su'y or trans$ission of e'ectricity eAcet by $eans of a syste$ which
confor$s to the secification as $ay be secifiedJ
d. &ivin& notice in the secified for$ to the Aroriate 7o$$ission and the +'ectrica'
Insector< of accidents and fai'ures of su'ies or trans$issions of e'ectricityJ
e. 4eein& by a &eneratin& co$any or 'icensee the $as< 'ans and sections re'atin& to su'y
or trans$ission of e'ectricityJ
f. insection of $as< 'ans and sections by any erson authorised by it or by +'ectrica'
Insector or by any erson on ay$ent of secified feeJ
&. secifyin& action to be ta4en in re'ation to any e'ectric 'ine or e'ectrica' 'ant< or any
e'ectrica' a'iance under the contro' of a consu$er for the urose of e'i$inatin& or
reducin& a ris4 of ersona' in>ury or da$a&e to roerty or interference with its useJ
Control o8 transmission and /se o8 electricity
B4#
1. Save as otherwise eAe$ted under this Act< no erson other than 7entra' 1rans$ission
?ti'ity or a State 1rans$ission ?ti'ity< or a 'icensee sha'' trans$it or use e'ectricity at a rate
eAceedin& two hundred and fifty watts and one hundred vo'ts 6
a. in any street< or
b. in any 'ace<!
i. in which one hundred or $ore ersons are ordinari'y 'i4e'y to be asse$b'edJ
or
"1
ii. which is a factory within the $eanin& of the 8actories Act< 1,4* or a $ine
within the $eanin& of the Mines Act< 1,52J or declares ') o8 %A4C#)B o8
%AB(#
iii. to which the State -overn$ent< by &enera' or secia' order< the rovisions of
this sub!section to a'y<
without &ivin&< before the co$$ence$ent of trans$ission or use of e'ectricity< not
'ess than seven daysD notice in writin& of his intention to the +'ectrica' Insector and
to the 2istrict Ma&istrate< or the 7o$$issioner of Po'ice< as the case $ay be<
containin& articu'ars of the e'ectrica' insta''ation and 'ant< if any< the nature and the
urose of su'y and co$'yin& with such of the rovisions of Part 5I of this Act<
as $ay be a'icab'eC
(4 o8 %ACA
Provided that nothin& in this section sha'' a'y to e'ectricity used for the ub'ic
carria&e of assen&ers< ani$a's or &oods< on< or for the 'i&htin& or venti'ation of the
ro''in& stoc4 of any rai'way or tra$way sub>ect to the rovisions of the #ai'ways Act<
1,*,.
2. 3here any difference or disute arises as to whether a 'ace is or is not one in which one
hundred or $ore ersons are ordinari'y 'i4e'y to be asse$b'ed< the $atter sha'' be referred to
the State -overn$ent< and the decision of the State -overn$ent thereon sha'' be fina'.
3. 1he rovisions of this section sha'' be bindin& on the -overn$ent.
BB#
1. No 'icensee sha'' su'y e'ectricity< after the eAiry of two years fro$ the aointed
date<,se; etc#; o8 meters eAcet throu&h insta''ation of a correct $eter in accordance with
re&u'ations to be $ade in this beha'f by the AuthorityC Provided that the 'icensee $ay re=uire
the consu$er to &ive hi$ security for the rice of a $eter and enter into an a&ree$ent for the
hire thereof< un'ess the consu$er e'ects to urchase a $eterC Provided further that the State
7o$$ission $ay< by notification eAtend the said eriod of two years for a c'ass or c'asses of
ersons or for such area as $ay be secified in that notification.
2. 8or roer accountin& and audit in the &eneration< trans$ission and distribution or tradin& of
e'ectricity< the Authority $ay direct the insta''ation of $eters by a &eneratin& co$any or
'icensee at such sta&es of &eneration< trans$ission or distribution or tradin& of e'ectricity and
at such 'ocations of &eneration< trans$ission or distribution or tradin& < as it $ay dee$
necessary.
3. If a erson $a4es defau't in co$'yin& with the rovisions contained in this section or
re&u'ations $ade under sub!section :1;< the Aroriate 7o$$ission $ay $a4e such order
"2
as it thin4s fit for re=uirin& the defau't to be $ade &ood by the &eneratin& co$any or
'icensee or by any officers of a co$any or other association or any other erson who is
resonsib'e for its defau't.
Disconnection o8 s/pply in de8a/lt o8 payment#
B'#
1. 3here any erson ne&'ects to ay any char&e for e'ectricity or any su$ other than a char&e
for e'ectricity due fro$ hi$ to a 'icensee or the &eneratin& co$any in resect of su'y<
trans$ission or distribution or whee'in& of e'ectricity to hi$< the 'icensee or the &eneratin&
co$any $ay< after &ivin& not 'ess than fifteen c'ear days notice in writin&< to such erson
and without re>udice to his ri&hts to recover such char&e or other su$ by suit< cut off the
su'y of e'ectricity and for that urose cut or disconnect any e'ectric su'y 'ine or other
wor4s bein& the roerty of such 'icensee or the &eneratin& co$any throu&h which
e'ectricity $ay have been su'ied< trans$itted< distributed or whee'ed and $ay discontinue
the su'y unti' such char&e or other su$< to&ether with any eAenses incurred by hi$ in
cuttin& off and reconnectin& the su'y< are aid< but no 'on&erC Provided that the su'y of
e'ectricity sha'' not be cut off if such erson deosits < under rotest< !
a. an a$ount e=ua' to the su$ c'ai$ed fro$ hi$< or
b. the e'ectricity char&es due fro$ hi$ for each $onth ca'cu'ated on the basis of
avera&e char&e for e'ectricity aid by hi$ durin& the recedin& siA $onths<
whichever is 'ess< endin& disosa' of any disute between hi$ and the 'icensee.
2. Notwithstandin& anythin& contained in any other 'aw for the ti$e bein& in force< no su$ due
fro$ any consu$er< under this section sha'' be recoverab'e after the eriod of two years fro$
the date when such su$ beca$e first due un'ess such su$ has been shown continuous'y as
recoverab'e as arrear of char&es for e'ectricity su'ied and the 'icensee sha'' not cut off the
su'y of the e'ectricityC
Consumer protection: Standards o perormance
Standard o8 per8ormance o8 licensee#
BE#
1. 1he Aroriate 7o$$ission $ay< after consu'tation with the 'icensees and ersons 'i4e'y to
be affected< secify standards of erfor$ance of a 'icensee or a c'ass of 'icensees.
2. If a 'icensee fai's to $eet the standards secified under subsection :1;< without re>udice to
any ena'ty which $ay be i$osed or rosecution be initiated< he sha'' be 'iab'e to ay such
co$ensation to the erson affected as $ay be deter$ined by the Aroriate 7o$$issionC
Provided that before deter$ination of co$ensation< the concerned 'icensee sha'' be &iven a
reasonab'e oortunity of bein& heard.
"3
3. 1he co$ensation deter$ined under sub!section :2; sha'' be aid by the concerned 'icensee
within ninety days of such deter$ination.
Di88erent Standards o8 per8ormance 7y licensee#
BC#
1he Aroriate 7o$$ission $ay secify different standards under subsection :1; of section 5) for
a c'ass or c'asses of 'icensee.
In8ormation :it5 respect to levels o8 per8ormance#
BA#
1. +very 'icensee sha''< within the eriod secified by the Aroriate 7o$$ission< furnish to
the 7o$$ission the fo''owin& infor$ation< na$e'yC!
a. the 'eve' of erfor$ance achieved under sub!section :1; of the section 5)J
b. the nu$ber of cases in which co$ensation was $ade under subsection :2; of section
5) and the a&&re&ate a$ount of the co$ensation.
2. 1he Aroriate 7o$$ission sha'' at 'east once in every year arran&e for the ub'ication< in
such for$ and $anner as it considers aroriate< of such of the infor$ation furnished to it
under sub!section :1;.
0ar9et destination
'&#
1he Aroriate 7o$$ission $ay such issue directions as it considers aroriate to a 'icensee or a
&eneratin& co$any if such 'icensee or &eneratin& co$any enters into any a&ree$ent or abuses its
do$inant osition or enters into a co$bination which is 'i4e'y to cause or causes an adverse effect
on co$etition in e'ectricity industry.

"4
PA+T .%%
TA+IFF
Tari88 +eg/lations#
'%#
1he Aroriate 7o$$ission sha''< sub>ect to the rovisions of this Act< secify the ter$s and
conditions for the deter$ination of tariff< and in doin& so< sha'' be &uided by the fo''owin&< na$e'yC!
a. the rinci'es and $ethodo'o&ies secified by the 7entra' 7o$$ission for deter$ination of
the tariff a'icab'e to &eneratin& co$anies and trans$ission 'icenseesJ
b. the &eneration< trans$ission< distribution and su'y of e'ectricity are conducted on
co$$ercia' rinci'esJ
c. the factors which wou'd encoura&e co$etition< efficiency< econo$ica' use of the resources<
&ood erfor$ance and oti$u$ invest$entsJ
d. safe&uardin& of consu$ersN interest and at the sa$e ti$e< recovery of the cost of e'ectricity in
a reasonab'e $annerJ
e. the rinci'es rewardin& efficiency in erfor$anceJ
f. $u'ti year tariff rinci'esJ
&. that the tariff ro&ressive'y ref'ects the cost of su'y of e'ectricity and a'so< reduces and
e'i$inates cross!subsidies within the eriod to be secified by the Aroriate 7o$$issionJ
h. the ro$otion of co!&eneration and &eneration of e'ectricity fro$ renewab'e sources of
ener&yJ
i. the Nationa' +'ectricity Po'icy and tariff o'icyC
B4 o8 %A4C %4 o8 %AAC
Provided that the ter$s and conditions for deter$ination of tariff under the +'ectricity :Su'y; Act<
1,4*< the +'ectricity #e&u'atory 7o$$ission Act< 1,,* and the enact$ents secified in the
Schedu'e as they stood i$$ediate'y before the aointed date< sha'' continue to a'y for a eriod of
one year or unti' the ter$s and conditions for tariff are secified under this section< whichever is
ear'ier.
Determination o8 Tari88#
'(#
1. 1he Aroriate 7o$$ission sha'' deter$ine the tariff in accordance with rovisions of this
Act for 6
"5
a. su'y of e'ectricity by a &eneratin& co$any to a distribution 'icenseeC Provided that
the Aroriate 7o$$ission $ay< in case of shorta&e of su'y of e'ectricity< fiA the
$ini$u$ and $aAi$u$ cei'in& of tariff for sa'e or urchase of e'ectricity in
ursuance of an a&ree$ent< entered into between a &eneratin& co$any and a
'icensee or between 'icensees< for a eriod not eAceedin& one year to ensure
reasonab'e rices of e'ectricityJ
b. trans$ission of e'ectricity J
c. whee'in& of e'ectricityJ
d. retai' sa'e of e'ectricity. Provided that in case of distribution of e'ectricity in the sa$e
area by two or $ore distribution 'icensees< the Aroriate 7o$$ission $ay< for
ro$otin& co$etition a$on& distribution 'icensees< fiA on'y $aAi$u$ cei'in& of
tariff for retai' sa'e of e'ectricity.
2. 1he Aroriate 7o$$ission $ay re=uire a 'icensee or a &eneratin& co$any to furnish
searate detai's< as $ay be secified in resect of &eneration< trans$ission and distribution
for deter$ination of tariff.
3. 1he Aroriate 7o$$ission sha'' not< whi'e deter$inin& the tariff under this Act< show
undue reference to any consu$er of e'ectricity but $ay differentiate accordin& to the
consu$erNs 'oad factor< ower factor< vo'ta&e< tota' consu$tion of e'ectricity durin& any
secified eriod or the ti$e at which the su'y is re=uired or the &eo&rahica' osition of
any area< the nature of su'y and the urose for which the su'y is re=uired.
4. No tariff or art of any tariff $ay ordinari'y be a$ended $ore fre=uent'y than once in any
financia' year< eAcet in resect of any chan&es eAress'y er$itted under the ter$s of any
fue' surchar&e for$u'a as $ay be secified.
5. 1he 7o$$ission $ay re=uire a 'icensee or a &eneratin& co$any to co$'y with such
rocedures as $ay be secified for ca'cu'atin& the eAected revenues fro$ the tariff and
char&es which he or it is er$itted to recover.
". If any 'icensee or a &eneratin& co$any recovers a rice or char&e eAceedin& the tariff
deter$ined under this section< the eAcess a$ount sha'' be recoverab'e by the erson who has
aid such rice or char&e a'on& with interest e=uiva'ent to the ban4 rate without re>udice to
any other 'iabi'ity incurred by the 'icensee.
""
Determination o8 tari88 7y 7idding process#
')#
Notwithstandin& anythin& contained in section "2< the Aroriate 7o$$ission sha'' adot the tariff
if such tariff has been deter$ined throu&h transarent rocess of biddin& in accordance with the
&uide'ines issued by the 7entra' -overn$ent.
Proced/re 8or tari88 order#
'4#
1. An a'ication for deter$ination of tariff under section "2 sha'' be $ade by a &eneratin&
co$any or 'icensee in such $anner and acco$anied by such fee< as $ay be deter$ined by
re&u'ations.
2. +very a'icant sha'' ub'ish the a'ication< in such abrid&ed for$ and $anner< as $ay be
secified by the Aroriate 7o$$ission.
3. 1he Aroriate 7o$$ission sha''< within one hundred and twenty days fro$ receit of an
a'ication under sub!section :1; and after considerin& a'' su&&estions and ob>ections
received fro$ the ub'ic<!
a. issue a tariff order accetin& the a'ication with such $odifications or such
conditions as $ay be secified in that orderJ
b. re>ect the a'ication for reasons to be recorded in writin& if such a'ication is not in
accordance with the rovisions of this Act and the ru'es and re&u'ations $ade
thereunder or the rovisions of any other 'aw for the ti$e bein& in forceC Provided
that an a'icant sha'' be &iven a reasonab'e oortunity of bein& heard before
re>ectin& his a'ication.
4. 1he Aroriate 7o$$ission sha''< within seven days of $a4in& the order< send a coy of
the order to the Aroriate -overn$ent< the Authority< and the concerned 'icensees and to
the erson concerned.
5. Notwithstandin& anythin& contained in Part 5< the tariff for any inter!State su'y<
trans$ission or whee'in& of e'ectricity< as the case $ay be< invo'vin& the territories of two
States $ay< uon a'ication $ade to it by the arties intendin& to underta4e such su'y<
trans$ission or whee'in&< be deter$ined under this section by the State 7o$$ission havin&
>urisdiction in resect of the 'icensee who intends to distribute e'ectricity and $a4e ay$ent
thereforC
". A tariff order sha''< un'ess a$ended or revo4ed< sha'' continue to be in force for such eriod
as $ay be secified in the tariff order.
")
Provision o8 s/7sidy 7y State 2overnment#
'B#
If the State -overn$ent re=uires the &rant of any subsidy to any consu$er or c'ass of consu$ers in
the tariff deter$ined by the State 7o$$ission under section "2< the State -overn$ent sha''<
notwithstandin& any direction which $ay be &iven under section 1.*< ay< within in advance in the
$anner as $ay be secified < by the State 7o$$ission the a$ount to co$ensate the erson
affected by the &rant of subsidy in the $anner the State 7o$$ission $ay direct< as a condition for
the 'icence or any other erson concerned to i$'e$ent the subsidy rovided for by the State
-overn$entC
Provided that no such direction of the State -overn$ent sha'' be oerative if the ay$ent is not
$ade in accordance with the rovisions contained in this section and the tariff fiAed by State
7o$$ission sha'' be a'icab'e fro$ the date of issue of orders by the 7o$$ission in this re&ard. .
Development o8 mar9et#
''#
1he Aroriate 7o$$ission sha'' endeavour to ro$ote the deve'o$ent of a $ar4et :inc'udin&
tradin&; in ower in such $anner as $ay be secified and sha'' be &uided by the Nationa' +'ectricity
Po'icy referred to in section 3 in this re&ard..

"*
PA+T .%%%
W"+FS
!or"s o licensees
Provision as to opening /p o8 streets; rail:ays etc#
'E#
1. A 'icensee $ay< fro$ ti$e to ti$e but sub>ect a'ways to the ter$s and conditions of his
'icence< within his area of su'y or trans$ission or when er$itted by the ter$s of his
'icence to 'ay down or 'ace e'ectric su'y 'ines without the area of su'y< without that area
carry out wor4s such as !
a. to oen and brea4 u the soi' and ave$ent of any street< rai'way or tra$wayJ
b. to oen and brea4 u any sewer< drain or tunne' in or under any street< rai'way or
tra$wayJ
c. to a'ter the osition of any 'ine or wor4s or ies< other than a $ain sewer ieJ
d. to 'ay down and 'ace e'ectric 'ines< e'ectrica' 'ant and other wor4sJ
e. to reair< a'ter or re$ove the sa$eJ
f. to do a'' other acts necessary for trans$ission or su'y of e'ectricity.
2. 1he Aroriate -overn$ent $ay< by ru'es $ade by it in this beha'f< secify< !
a. the cases and circu$stances in which the consent in writin& of the Aroriate
-overn$ent< 'oca' authority< owner or occuier< as the case $ay be< sha'' be re=uired
for carryin& out wor4sJ
b. the authority which $ay &rant er$ission in the circu$stances where the owner or
occuier ob>ects to the carryin& out of wor4sJ
c. the nature and eriod of notice to be &iven by the 'icensee before carryin& out wor4sJ
d. the rocedure and $anner of consideration of ob>ections and su&&estion received in
accordance with the notice referred to in c'ause :c;J
e. the deter$ination and ay$ent of co$ensation or rent to the ersons affected by
wor4s under this sectionJ
f. the reairs and wor4s to be carried out when e$er&ency eAistsJ
",
&. the ri&ht of the owner or occuier to carry out certain wor4s under this section and
the ay$ent of eAenses thereforJ
h. the rocedure for carryin& out other wor4s near sewers< ies or other e'ectric 'ines or
wor4sJ
i. the rocedure for a'teration of the osition of ies< e'ectric 'ines< e'ectrica' 'ant<
te'e&rah 'ines< sewer 'ines< tunne's< drains< etc.J
>. the rocedure for fencin&< &uardin&< 'i&htin& and other safety $easures re'atin& to
wor4s on streets< rai'ways< tra$ways< sewers< drains or tunne's and i$$ediate
reinstate$ent thereofJ
4. the avoidance of ub'ic nuisance< environ$enta' da$a&e and unnecessary da$a&e to
the ub'ic and rivate roerty by such wor4sJ
'. the rocedure for underta4in& wor4s which are not rearab'e by the Aroriate
-overn$ent< 'icensee or 'oca' authorityJ
$. the $anner of deosit of a$ount re=uired for restoration of any rai'ways< tra$ways<
waterways< etc.J
n. the $anner of restoration of roerty affected by such wor4s and $aintenance
thereofJ
o. the rocedure for deosit of co$ensation ayab'e by the 'icensee and furnishin& of
securityJ and
. such other $atters as are incidenta' or conse=uentia' to the construction and
$aintenance of wor4s under this section.
3. A 'icensee sha''< in eAercise of any of the owers conferred by or under this section and the
ru'es $ade thereunder< cause as 'itt'e da$a&e< detri$ent and inconvenience as $ay be< and
sha'' $a4e fu'' co$ensation for any da$a&e< detri$ent or inconvenience caused by hi$ or
by any one e$'oyed by hi$.
4. 3here any difference or disute Tinc'udin& a$ount of co$ensation under sub!section :3;U
arises under this section< the $atter sha'' be deter$ined by the Aroriate 7o$$ission.
5. 1he Aroriate 7o$$ission< whi'e deter$inin& any difference or disute arisin& under this
section in addition to any co$ensation under sub!section :3;< $ay i$ose a ena'ty not
eAceedin& the a$ount of co$ensation ayab'e under that sub!section.
).
Provisions relating to over5ead lines
"ver5ead lines#
'C#
1. An overhead 'ine sha''< with rior arova' of the Aroriate -overn$ent< be insta''ed or
4et insta''ed above &round in accordance with the rovisions of sub!section :2;.
2. 1he rovisions contained in sub!section :1; sha'' not a'y!
a. in re'ation to an e'ectric 'ine which has a no$ina' vo'ta&e not eAceedin& 11 4i'ovo'ts
and is used or intended to be used for su'yin& to a sin&'e consu$erJ
b. in re'ation to so $uch of an e'ectric 'ine as is or wi'' be within re$ises in the
occuation or contro' of the erson resonsib'e for its insta''ationJ or
c. in such other cases as $ay be rescribed.
3. 1he Aroriate -overn$ent sha''< whi'e &rantin& arova' under sub!section :1;< i$ose
such conditions :inc'udin& conditions as to the ownershi and oeration of the 'ine; as aear
to it to be necessary
4. 1he Aroriate -overn$ent $ay vary or revo4e the arova' at any ti$e after the end of
such eriod as $ay be stiu'ated in the arova' &ranted by it.
5. 3here any tree standin& or 'yin& near an overhead 'ine or where any structure or other ob>ect
which has been 'aced or has fa''en near an overhead 'ine subse=uent to the 'acin& of such
'ine< interruts or interferes with< or is 'i4e'y to interrut or interfere with< the conveyance or
trans$ission of e'ectricity or the 3" to interrut or interfere with< the conveyance or
trans$ission of e'ectricity or the accessibi'ity of any wor4s< an +Aecutive Ma&istrate or
authority secified by the Aroriate -overn$ent $ay< on the a'ication of the 'icensee<
cause the tree< structure or ob>ect to be re$oved or otherwise dea't with as he or it thin4s fit.
". 3hen disosin& of an a'ication under sub!section :5;< an +Aecutive Ma&istrate or authority
secified under that sub!section sha''< in the case of any tree in eAistence before the 'acin&
of the overhead 'ine< award to the erson interested in the tree such co$ensation as he
thin4s reasonab'e< and such erson $ay recover the sa$e fro$ the 'icensee.
+A'anation. ! 8or uroses of this section< the eAression P treeQ sha'' be dee$ed to inc'ude
any shrub< hed&e< >un&'e &rowth or other 'ant.
Notice to telegrap5 a/t5ority#
)1
'A#
1. :1; A 'icensee sha''< before 'ayin& down or 'acin&< within ten $eters of any te'e&rah 'ine<
e'ectric 'ine< e'ectrica' 'ant or other wor4s< not bein& either service 'ines< or e'ectric 'ines or
e'ectrica' 'ant< for the reair< renewa' or a$end$ent of eAistin& wor4s of which the
character or osition is not to be a'tered<!
a. sub$it a roosa' in case of a new insta''ation to an authority to be desi&nated by the
7entra' -overn$ent and such authority sha'' ta4e a decision on the roosa' within
thirty daysJ
b. &ive not 'ess than ten daysN notice in writin& to the te'e&rah authority in case of
reair< renewa' or a$end$ent or eAistin& wor4s < secifyin&!
i. the course of the wor4s or a'terations roosed J
ii. the $anner in which the wor4s are to be uti'ised J
iii. the a$ount and nature of the e'ectricity to be trans$ittedJ
iv. the eAtent to< and the $anner in which :if at a'';< earth returns are to be used <
and the 'icensee sha'' confor$ to such reasonab'e re=uire$ents< either &enera' or
secia'< as $ay be 'aid down by the te'e&rah authority within that eriod for
reventin& any te'e&rah 'ine fro$ bein& in>urious'y affected by such wor4s or
a'terationsC Provided that in case of e$er&ency :which sha'' be stated by the 'icensee
in writin& to the te'e&rah authority; arisin& fro$ defects in any of the e'ectric 'ines
or e'ectrica' 'ant or other wor4s of the 'icensee< the 'icensee sha'' be re=uired to &ive
on'y such notice as $ay be ossib'e after the necessity for the roosed new wor4s or
a'terations has arisen.
2. 3here the wor4s of the 'ayin& or 'acin& of any service 'ine is to be eAecuted the 'icensee
sha''< not 'ess than forty!ei&ht hours before co$$encin& the wor4< serve uon the te'e&rah
authority a notice in writin& of his intention to eAecute such wor4s.

)2
PA+T IX
Central Electricity A/t5ority
Constitution and unctions o #uthority
Constit/tion;etc#; o8 Central Electricity A/t5ority#
E&#
1. 1here sha'' be a body to be ca''ed the 7entra' +'ectricity Authority to eAercise such functions
and erfor$ such duties as are assi&ned to it under this Act.
B4 o8 %A4C#
2. 1he 7entra' +'ectricity Authority< estab'ished under section 3 of the +'ectricity :Su'y; Act<
1,4* and functionin& as such i$$ediate'y before the aointed date< sha'' be the 7entra'
+'ectricity Authority for the uroses of this Act and the 7hairerson < Me$bers< Secretary
and other officers and e$'oyees thereof sha'' be dee$ed to have been aointed under this
Act and they sha'' continue to ho'd office on the sa$e ter$s and conditions on which they
were aointed under the +'ectricity :Su'y; Act< 1,4*.
3. 1he Authority sha'' consist of not $ore than fourteen Me$bers :inc'udin& its 7hairerson; of
who$ not $ore than ei&ht sha'' be fu''!ti$e Me$bers to be aointed by the 7entra'
-overn$ent.
4. 1he 7entra' -overn$ent $ay aoint any erson< e'i&ib'e to be aointed as Me$ber of the
Authority< as the 7hairerson of the Authority< or< desi&nate one of the fu'' ti$e Me$bers as
the 7hairerson of the Authority.
5. 1he Me$bers of the Authority sha'' be aointed fro$ a$on&st ersons of abi'ity< inte&rity
and standin& who have 4now'ed&e of< and ade=uate eAerience and caacity in< dea'in& with
rob'e$s re'atin& to en&ineerin&< finance< co$$erce< econo$ics or industria' $atters< and at
'east one Me$ber sha'' be aointed fro$ each of the fo''owin& cate&ories< na$e'yC!
a. en&ineerin& with secia'isation in desi&n< construction< oeration and $aintenance of
&eneratin& stationsJ
b. en&ineerin& with secia'isation in trans$ission and su'y of e'ectricityJ
c. a'ied research in the fie'd of e'ectricityJ :d; a'ied econo$ics< accountin&<
co$$erce or finance.
". 1he 7hairerson and a'' the Me$bers of the Authority sha'' ho'd office durin& the 'easure
of the 7entra' -overn$ent.
). 1he 7hairerson sha'' be the 7hief +Aecutive of the Authority.
)3
*. 1he head =uarters of the Authority sha'' be at 2e'hi.
,. 1he Authority sha'' $eet at the head office or any other 'ace at such ti$e as the 7hairerson
$ay direct< and sha'' observe such ru'es of rocedure in re&ard to the transaction of business
at its $eetin&s :inc'udin& the =uoru$ at its $eetin&s; as it $ay secify.
1.. 1he 7hairerson< or if he is unab'e to attend a $eetin& of the Authority< any other Me$ber
no$inated by the 7hairerson in this beha'f and in the absence of such no$ination or where
there is no 7hairerson< any Me$ber chosen by the Me$bers resent fro$ a$on&
the$se'ves sha'' reside at the $eetin&.
11. A'' =uestions which co$e u before any $eetin& of the Authority sha'' be decided by a
$a>ority of votes of the Me$bers resent and votin&< and in the event of an e=ua'ity of votes<
the 7hairerson or the erson residin& sha'' have the ri&ht to eAercise a second or castin&
vote.
12. A'' orders and decisions of the Authority sha'' be authenticated by the Secretary or any other
officer of the Authority du'y authorised by the 7hairerson in this beha'f.
13. No act or roceedin&s of the Authority sha'' be =uestioned or sha'' be inva'idated $ere'y on
the &round of eAistence of any vacancy in< or any defect in< the constitution of< the Authority.
14. 1he 7hairerson of the Authority and other fu'' ti$e Me$bers sha'' receive such sa'ary and
a''owances as $ay be deter$ined by the 7entra' -overn$ent and other Me$bers sha''
receive such a''owances and fees for attendin& the $eetin&s of the Authority< as the 7entra'
-overn$ent $ay rescribe.
15. 1he other ter$s and conditions of service of the 7hairerson and Me$bers of the Authority
inc'udin&< sub>ect to the rovisions of sub!section :";< their ter$s of office sha'' be such as
the 7entra' -overn$ent $ay rescribe.
0em7ers not to 5ave certain interest#
E%#
No Me$ber of the Authority sha'' have any share or interest< whether in his own na$e or otherwise<
in any co$any or other body cororate or an association of ersons :whether incororated or not;<
or a fir$ en&a&ed in the business of &eneration< trans$ission< distribution and tradin& of e'ectricity
or fue' for the &eneration thereof or in the $anufacture of e'ectrica' e=ui$ent.
"88icers and sta88 o8 A/t5ority#
E(#
)4
1he Authority $ay aoint a Secretary and such other officers and e$'oyees as it considers
necessary for the erfor$ance of its functions under this Act and on such ter$s as to sa'ary<
re$uneration< fee< a''owance< ension< 'eave and &ratuity< as the authority $ay in consu'tation with
the 7entra' -overn$ent< fiAC
Provided that the aoint$ent of the Secretary sha'' be sub>ect to the arova' of the 7entra'
-overn$ent.
F/nctions and d/ties o8 A/t5ority#
E)#
1he Authority sha'' erfor$ such functions and duties as the 7entra' -overn$ent $ay rescribe or
direct< and in articu'ar to !
a. advise the 7entra' -overn$ent on the $atters re'atin& to the nationa' e'ectricity o'icy<
for$u'ate short!ter$ and ersective 'ans for deve'o$ent of the e'ectricity syste$ and co!
ordinate the activities of the 'annin& a&encies for the oti$a' uti'isation of resources to
subserve the interests of the nationa' econo$y and to rovide re'iab'e and affordab'e
e'ectricity for a'' consu$ersJ
b. secify the technica' standards for construction of e'ectrica' 'ants< e'ectric 'ines and
connectivity to the &ridJ
c. secify the safety re=uire$ents for construction< oeration and $aintenance of e'ectrica'
'ants and e'ectric 'inesJ
d. secify the -rid Standards for oeration and $aintenance of trans$ission 'inesJ
e. secify the conditions for insta''ation of $eters for trans$ission and su'y of e'ectricityJ
f. ro$ote and assist in the ti$e'y co$'etion of sche$es and ro>ects for i$rovin& and
au&$entin& the e'ectricity syste$J
&. ro$ote $easures for advancin& the s4i'' of ersons en&a&ed in
the e'ectricity industryJ
h. advise the 7entra' -overn$ent on any $atter on which its advice
is sou&ht or $a4e reco$$endation to that -overn$ent on any $atter if< in the
oinion of the Authority< the reco$$endation wou'd he' in i$rovin& the
&eneration< trans$ission< tradin&< distribution and uti'isation of e'ectricityJ
i. co''ect and record the data concernin& the &eneration<
trans$ission< tradin&< distribution and uti'isation of e'ectricity and carry out studies
re'atin& to cost< efficiency< co$etitiveness and such 'i4e $attersJ
)5
>. $a4e ub'ic fro$ ti$e to ti$e infor$ation secured under this
Act< and rovide for the ub'ication of reorts and investi&ationsJ
4. ro$ote research in $atters affectin& the &eneration<
trans$ission< distribution and tradin& of e'ectricityJ
'. carry out< or cause to be carried out < any investi&ation for the
uroses of &eneratin& or trans$ittin& or distributin& e'ectricityJ
$. advise any State -overn$ent< 'icensees or the &eneratin&
co$anies on such $atters which sha'' enab'e the$ to oerate and $aintain the
e'ectricity syste$ under their ownershi or contro' in an i$roved $anner and
where necessary< in co!ordination with any other -overn$ent< 'icensee or the
&eneratin& co$any ownin& or havin& the contro' of another e'ectricity syste$J
n. advise the Aroriate -overn$ent and the Aroriate
7o$$ission on a'' technica' $atters re'atin& to &eneration< trans$ission and
distribution of e'ectricityJand
o. dischar&e such other functions as $ay be rovided under this Act.
Certain po:ers and directions
Po:er to re@/ire statistics and ret/rns#
E4#
It sha'' be the duty of every 'icensee< &eneratin& co$any or erson &eneratin& e'ectricity for its or
his own use to furnish to the Authority such statistics< returns or other infor$ation re'atin& to
&eneration< trans$ission< distribution< tradin& and use of e'ectricity as it $ay re=uire and at such
ti$es and in such for$ and $anner as $ay be secified by the Authority.
Directions 7y Central 2overnment to A/t5ority#
EB#
1. In the dischar&e of its functions< the Authority sha'' be &uided by such directions in $atters
of o'icy invo'vin& ub'ic interest as the 7entra' -overn$ent $ay &ive to it in writin&.
2. If any =uestion arises as to whether any such direction re'ates to a $atter of o'icy invo'vin&
ub'ic interest< the decision of the 7entra' -overn$ent thereon sha'' be fina'.

)"
PA+T X
+eg/latory Commissions
Constitution$ powers and unctions o Central Commission
Constit/tion o8 Central Commission#
E'#
1. 1here sha'' be a 7o$$ission to be 4nown as the 7entra' +'ectricity #e&u'atory 7o$$ission
to eAercise the owers conferred on< and dischar&e the functions assi&ned to< it under this
Act.
%4 o8 %AAC#
2. the 7entra' 7o$$ission for the uroses of this Act and the 7hairerson< Me$bers<
Secretary< and other officers and e$'oyees thereof sha'' dee$ed to have been aointed
under this Act and they sha'' continue to ho'd office on the sa$e ter$s and conditions on
which they were aointed under the +'ectricity #e&u'atory 7o$$issions Act< 1,,*.
Provided that the 7hairerson and other Me$bers of the 7entra' 7o$$ission aointed<
before the co$$ence$ent of this Act< under the +'ectricity #e&u'atory 7o$$issions Act<
1,,*< $ay< on the reco$$endations of the Se'ection 7o$$ittee constituted under sub!
section :1; of section )*< be a''owed< to ot for the ter$s and conditions under this Act by the
7entra' -overn$ent.
3. 1he 7entra' 7o$$ission sha'' be a body cororate by the na$e aforesaid< havin& eretua'
succession and a co$$on sea' with ower to ac=uire<ho'd and disose of roerty< both
$ovab'e and i$$ovab'e< and to contract and sha''< by the said na$e< sue or be sued.
4. 1he head office of the 7entra' 7o$$ission sha'' be at such 'ace as the 7entra' -overn$ent
$ay< by notification< secify.
5. 1he 7entra' 7o$$ission sha'' consist of the fo''owin& Me$bers na$e'yC!
a. a 7hairerson and three other Me$bersJ
b. the 7hairerson of the Authority who sha'' be the Me$ber< eA officio.
". 1he 7hairerson and Me$bers of the 7entra' 7o$$ission sha'' be aointed by the 7entra'
-overn$ent on the reco$$endation of the Se'ection 7o$$ittee referred to in section )*.
))
G/ali8ication 8or appointment o8 0em7ers o8 Central Commission#
EE#
1. 1he 7hairerson and the Me$bers of the 7entra' 7o$$ission sha'' be ersons
havin& ade=uate 4now'ed&e of< or eAerience in<or shown caacity in< dea'in& with<
rob'e$s re'atin& to en&ineerin&< 'aw< econo$ics< co$$erce< finance or< $ana&e$ent and
sha'' be aointed in the fo''owin& $anner< na$e'yC!
a. one erson havin& =ua'ifications and eAerience in the fie'd of en&ineerin&
with secia'isation in &eneration< trans$ission or distribution of e'ectricityJ
b. one erson havin& =ua'ifications and eAerience in the fie'd of financeJ
c. two ersons havin& =ua'ifications and eAerience in the fie'd of econo$ics<
co$$erce< 'aw or $ana&e$entC
Provided that not $ore than one Me$ber sha'' be aointed under the sa$e
cate&ory under c'ause :c;.
2. Notwithstandin& anythin& contained in sub!section :1;< the 7entra' -overn$ent $ay
aoint any erson as the 7hairerson fro$ a$on&st ersons who is<or has been< a
Fud&e of the Sure$e 7ourt or the 7hief Fustice of a Gi&h 7ourtC
Provided that no aoint$ent under this sub!section sha'' be $ade eAcet after
consu'tation with the 7hief Fustice of India.
3. 1he 7hairerson or any other Me$ber of the 7entra' 7o$$ission sha'' not ho'd any
other office.
4. 1he 7hairerson sha'' be the 7hief +Aecutive of the 7entra' 7o$$ission.
Constit/tion o8 Selection Committee to recommend 0em7ers
EC#
1. 1he 7entra' -overn$ent sha''< for the uroses of se'ectin& the Me$bers of
the Ae''ate 1ribuna' and the 7hairerson and Me$bers of the 7entra'
7o$$ission< constitute a Se'ection 7o$$ittee consistin& of 6
a. Me$ber of the P'annin& 7o$$ission inchar&e of the ener&y sector
VVVVVV 7hairersonJ
b. Secretary!in!char&e of the Ministry of the 7entra' -overn$ent dea'in&
with the 2eart$ent of the 0e&a' Affairs VVVV. Me$berJ
c. 7hairerson of the Pub'ic +nterrises Se'ection Board VV.. Me$berJ
)*
d. a erson to be no$inated by the 7entra' -overn$ent in accordance
with sub!section :2;VVVVVVV Me$ber J
e. a erson to be no$inated by the 7entra' -overn$ent in accordance
with sub!section :3; VVVVVVV Me$ber J
f. Secretary!in!char&e of the Ministry of the 7entra' -overn$ent dea'in&
with ower VVVVVVV.. Me$ber.
% o8 %AB'
2. 8or the uroses of c'ause :d; of sub!section :1;< the 7entra' -overn$ent
sha'' no$inate fro$ a$on&st ersons ho'din& the ost of chairerson or
$ana&in& director< by whatever na$e ca''ed< of any ub'ic financia'
institution secified in section 4A of the 7o$anies Act< 1,5".
3. 8or the uroses of c'ause :e; of sub!section :1;< the 7entra' -overn$ent
sha''< by notification< no$inate fro$ a$on&st ersons ho'din& the ost of
director or the head of the institution< by whatever na$e ca''ed< of any
research< technica' or $ana&e$ent institution for this urose.
4. Secretary!in!char&e of the Ministry of the 7entra' -overn$ent dea'in& with
Power sha'' be the 7onvenor of the Se'ection 7o$$ittee.
5. 1he 7entra' -overn$ent sha''< within one $onth fro$ the date of occurrence
of any vacancy by reason of death< resi&nation or re$ova' of a Me$ber of the
Ae''ate 1ribuna' or the 7hairerson or a Me$ber of the 7entra'
7o$$ission and siA $onths before the suerannuation or end of tenure of the
Me$ber of the Ae''ate 1ribuna' or Me$ber of the 7entra' 7o$$ission<
$a4e a reference to the Se'ection 7o$$ittee for fi''in& u of the vacancy.
". 1he Se'ection 7o$$ittee sha'' fina'ise the se'ection of the 7hairerson and
Me$bers referred to in sub!section :5; within three $onth fro$ the date on
which the reference is $ade to it.
). 1he Se'ection 7o$$ittee sha'' reco$$end a ane' of two na$es for every
vacancy referred to it.
*. Before reco$$endin& any erson for aoint$ent as Me$ber of the
Ae''ate 1ribuna' or the 7hairerson or other Me$ber of the 7entra'
7o$$ission< the Se'ection 7o$$ittee sha'' satisfy itse'f that such erson
does not have any financia' or other interest which is 'i4e'y to affect
re>udicia''y his functions as the 7hairerson or Me$ber.
),
,. No aoint$ent of the 7hairerson or other Me$ber sha'' be inva'id $ere'y
by reason of any vacancy in the Se'ection 7o$$itteeC
Provided that nothin& contained in this section sha'' a'y to the aoint$ent
of a erson as the 7hairerson of the 7entra' 7o$$ission where such erson
is< or has been < a Fud&e of the Sure$e 7ourt or the 7hief Fustice of a Gi&h
erson is< or has been < a Fud&e of the Sure$e 7ourt or the 7hief Fustice of a
Gi&h 7ourt.
F/nctions o8 Central Commission
EA#
1. 1he 7entra' 7o$$ission sha'' dischar&e the fo''owin& functions<
na$e'yC!
a. to re&u'ate the tariff of &eneratin& co$anies owned or
contro''ed by the 7entra' -overn$entJ
b. to re&u'ate the tariff of &eneratin& co$anies other than those
owned or contro''ed by the 7entra' -overn$ent secified in
c'ause :a;< if such &eneratin& co$anies enter into or otherwise
have a co$osite sche$e for &eneration and sa'e of e'ectricity
in $ore than one StateJ
c. to re&u'ate the inter!State trans$ission of e'ectricity J
d. to deter$ine tariff for inter!State trans$ission of e'ectricityJ
e. to issue 'icenses to ersons to function as trans$ission 'icensee
and e'ectricity trader with resect to their inter!State
oerations.
f. to ad>udicate uon disutes invo'vin& &eneratin& co$anies or
trans$ission 'icensee in re&ard to $atters connected with
c'auses :a; to :d; above and to refer any disute for arbitrationJ
&. to 'evy fees for the uroses of this ActJ
h. to secify -rid 7ode havin& re&ard to -rid StandardsJ
i. to secify and enforce the standards with resect to =ua'ity<
continuity and re'iabi'ity of service by 'icensees.
*.
>. to fiA the tradin& $ar&in in the inter!State tradin& of e'ectricity<
if considered< necessaryJ
4. to dischar&e such other functions as $ay be assi&ned under this
Act.
2. 1he 7entra' 7o$$ission sha'' advise the 7entra' -overn$ent on a''
or any of the fo''owin& $atters< na$e'y C! :a; Advise the 7entra'
-overn$ent on a'' or any of the fo''owin& $atters< na$e'yC! :i;
for$u'ation of Nationa' e'ectricity Po'icy and tariff o'icyC :ii;
ro$otion of co$etition< efficiency and econo$y in activities of the
e'ectricity industryJ :iii; ro$otion of invest$ent in e'ectricity
industryJ :iv; any other $atter referred to the 7entra' 7o$$ission by
that -overn$ent.
3. 1he 7entra' 7o$$ission sha'' ensure transarency whi'e eAercisin&
its owers and dischar&in& its functions.
4. In dischar&e of its functions< the 7entra' 7o$$ission sha'' be &uided
by the Nationa' +'ectricity Po'icy< Nationa' +'ectricity P'an and tariff
o'icy ub'ished under section 3.
Central Advisory Committee#
C&#
5. 1he 7entra' 7o$$ission $ay< by notification< estab'ish with effect
fro$ such date as it $ay secify in such notification< a 7o$$ittee to
be 4nown as the 7entra' Advisory 7o$$ittee.
". 1he 7entra' Advisory 7o$$ittee sha'' consist of not $ore than thirty!
one $e$bers to reresent the interests of co$$erce< industry<
transort< a&ricu'ture< 'abour< consu$ers< non!&overn$enta'
or&anisations and acade$ic and research bodies in the e'ectricity
sector.
). 1he 7hairerson of the 7entra' 7o$$ission sha'' be the eAofficio
7hairerson of the 7entra' Advisory 7o$$ittee and the Me$bers of
that 7o$$ission and Secretary to the -overn$ent of India in char&e
of the Ministry or 2eart$ent of the 7entra' -overn$ent dea'in& with
7onsu$er Affairs and Pub'ic 2istribution Syste$ sha'' be the eA!
officio Me$bers of the 7o$$ittee.
*1
"7=ects o8 Central Advisory Committee
C%#
1he ob>ects of the 7entra' Advisory 7o$$ittee sha'' be to advise the 7entra'
7o$$ission onC!!
i. $a>or =uestions of o'icyJ
ii. $atters re'atin& to =ua'ity< continuity and eAtent of service rovided by
the 'icenseesJ
iii. co$'iance by the 'icensees with the conditions and re=uire$ents of
their 'icenceJ
iv. rotection of consu$er interestJ
v. e'ectricity su'y and overa'' standards of erfor$ance by uti'ities.
Constitution$ powers and unctions o the State Commissions
Constit/tion o8 State Commission
C(#
1. +very State -overn$ent sha''< within siA $onths fro$ the aointed
date< by notification< constitute for the uroses of this Act< a 7o$$ission for
the State to be 4nown as the :na$e of the State; +'ectricity #e&u'atory
7o$$issionC
%4 o8 %AAC
Provided that the State +'ectricity #e&u'atory 7o$$ission<
estab'ished by a State -overn$ent under section 1) of the +'ectricity
#e&u'atory 7o$$issions Act< 1,,* and the enact$ents secified in
the Schedu'e< and functionin& as such i$$ediate'y before the
aointed date sha'' be the State 7o$$ission for the uroses of this
Act and the 7hairerson< Me$bers< Secretary< and other officers and
other e$'oyees thereof sha'' continue to ho'd office< on the sa$e
ter$s and conditions on which they were aointed under those Acts.
Provided further that the 7hairerson and other Me$bers of the State
7o$$ission aointed before the co$$ence$ent of this Act under
the +'ectricity #e&u'atory 7o$$issions Act< 1,,* or under the
enact$ents secified in the Schedu'e< $ay on the reco$$endations of
the Se'ection 7o$$ittee constituted under sub!section :1; of Section
*2
*5 be a''owed to ot for the ter$s and conditions under this Act by the
concerned State -overn$ent.
2. 1he State 7o$$ission sha'' be a body cororate by the na$e aforesaid< havin& eretua'
succession and a co$$on sea'< with ower to ac=uire< ho'd and disose of roerty< both $ovab'e
and i$$ovab'e< and to contract and sha''< by the said na$e< sue or be sued.
3. 1he head office of the State 7o$$ission sha'' be at such 'ace as the
State -overn$ent $ay< by notification< secify.
4. 1he State 7o$$ission sha'' consist of not $ore than three Me$bers<
inc'udin& the 7hairerson.
5. 1he 7hairerson and Me$bers of the State 7o$$ission sha'' be
aointed by the State -overn$ent on the reco$$endation of a
Se'ection 7o$$ittee referred to in section *5
-oint Commission
C)#
". Notwithstandin& anythin& to the contrary contained in section *2< a
Foint 7o$$ission $ay be constituted by an a&ree$ent to be entered into !
a. by two or $ore -overn$ents of StatesJ or
b. by the 7entra' -overn$ent< in resect of one or $ore ?nion
territories< and one or $ore -overn$ents of States<
and sha'' be in force for such eriod and sha'' be sub>ect to
renewa' for each further eriod< if any< as $ay be stiu'ated in
the a&ree$entC
%4 o8 %AAC
Provided that the Foint 7o$$ission< constituted under section
21 A of +'ectricity #e&u'atory 7o$$issions Act< 1,,* and
functionin& as such i$$ediate'y before the aointed day<
sha'' be the Foint 7o$$ission for the uroses of this Act and
the 7hairerson< $e$bers< Secretary and other officers and
e$'oyees thereof sha'' be dee$ed to have been aointed as
such under this Act and they sha'' continue to ho'd office< on
the sa$e ter$s and conditions on which they were aointed
under the +'ectricity #e&u'atory 7o$$issions Act< 1,,*.
*3
). 1he Foint 7o$$ission sha'' consists of 1 Me$ber fro$ each of the articiatin& States and
?nion 1erritories and the 7hairerson sha'' be aointed fro$ a$on&st the Me$bers by consensus<
fai'in& which by rotation.
*. An a&ree$ent under sub!section :1; sha'' contain rovisions as to the
na$e of the Foint 7o$$ission< the $anner in which the articiatin&
States $ay be associated in the se'ection of the 7hairerson and
Me$bers of the Foint 7o$$ission< $anner of aoint$ent of
Me$bers and aoint$ent of 7hairerson by rotation or consensus<
'aces at which the 7o$$ission sha'' sit< aortion$ent a$on& the
articiatin& States of the eAenditure in connection with the Foint
7o$$ission< $anner in which the differences of oinion between the
Foint 7o$$ission and the State -overn$ent concerned wou'd be
reso'ved and $ay a'so contain such other su'e$enta'< incidenta' and
conse=uentia' rovisions not inconsistent with this Act as $ay be
dee$ed necessary or eAedient for &ivin& effect to the a&ree$ent.
,. 1he Foint 7o$$ission sha'' deter$ine tariff in resect of the
articiatin& States or ?nion 1erritories searate'y and indeendent'y.
1.. Notwithstandin& anythin& contained in this section< the 7entra'
-overn$ent $ay< if so authorised by a'' the articiatin& States<
constitute a Foint 7o$$ission and $ay eAercise the owers in resect
of a'' or any of the $atters secified under sub!section :3; and
secifica''y so authoriEed by the articiatin& States.
G/ali8ications o8 appointment o8 C5airperson and 0em7ers o8 State
Commission#
C4#
11. 1he 7hairerson and the Me$bers of the State 7o$$ission sha'' be
ersons of abi'ity< inte&rity and standin& who have ade=uate 4now'ed&e of<
and have shown caacity in< dea'in& with rob'e$s re'atin& to en&ineerin&<
finance< co$$erce< econo$ics< 'aw or $ana&e$ent.
12. Notwithstandin& anythin& contained in sub!section :1;< the State
-overn$ent $ay aoint any erson as the 7hairerson fro$ a$on&st
ersons who is< or has been< a Fud&e of a Gi&h 7ourtC 45 is< or has
been< a Fud&e of a Gi&h 7ourtC Provided that no aoint$ent under
this sub!section sha'' be $ade eAcet after consu'tation with the 7hief
Fustice of that Gi&h 7ourt.
*4
13. 1he 7hairerson or any other Me$ber of the State 7o$$ission sha''
not ho'd any other office.
14. 1he 7hairerson sha'' be the 7hief +Aecutive of the State
7o$$ission.
Constit/tion o8 Selection Committee to select 0em7ers o8 State
Commission#
CB#
15. 1he State -overn$ent sha''< for the uroses of se'ectin& the
Me$bers of the State 7o$$ission< constitute a Se'ection 7o$$ittee
consistin& of 6
a. a erson who has been a Fud&e of the Gi&h 7ourtV.
7hairersonJ
b. the 7hief Secretary of the concerned StateV V V V .
V.Me$berJ
c. the 7hairerson of the Authority or the 7hairerson of the
7entra' 7o$$ission V V V V .. Me$berC Provided that
nothin& contained in this section sha'' a'y to the aoint$ent
of a erson as the 7hairerson who is or has been a Fud&e of
the Gi&h 7ourt.
1". 1he State -overn$ent sha''< within one $onth fro$ the date of
occurrence of any vacancy by reason of death< resi&nation or re$ova'
of the 7hairerson or a Me$ber and siA $onths before the
suerannuation or end of tenure of the 7hairerson or Me$ber< $a4e
a reference to the Se'ection 7o$$ittee for fi''in& u of the vacancy.
1). 1he Se'ection 7o$$ittee sha'' fina'ise the se'ection of the
7hairerson and Me$bers within three $onth fro$ the date on which
the reference is $ade to it.
1*. 1he Se'ection 7o$$ittee sha'' reco$$end a ane' of two na$es for
every vacancy referred to it.
1,. Before reco$$endin& any erson for aoint$ent as the 7hairerson
or other Me$ber of the State 7o$$ission< the Se'ection 7o$$ittee
sha'' satisfy itse'f that such erson does not have any financia' or other
interest which is 'i4e'y to affect re>udicia''y his functions as
*5
7hairerson or Me$ber< as the case $ay be. :"; No aoint$ent of
7hairerson or other Me$ber sha'' be inva'id $ere'y by reason of any
vacancy in the Se'ection 7o$$ittee.
F/nctions o8 State Commission
C'#
2.. 1he State 7o$$ission sha'' dischar&e the fo''owin& functions<
na$e'yC
a. deter$ine the tariff for &eneration< su'y< trans$ission and
whee'in& of e'ectricity< who'esa'e< bu'4 or retai'< as the case
$ay be< within the StateC Providin& that where oen access has
been er$itted to a cate&ory of consu$ers under section 42<
the State 7o$$ission sha'' deter$ine on'y the whee'in&
char&es and surchar&e thereon< if any< for the said cate&ory of
consu$ersJ
b. re&u'ate e'ectricity urchase and rocure$ent rocess of
distribution 'icensees inc'udin& the rice at which e'ectricity
sha'' be rocured fro$ the &eneratin& co$anies or 'icensees
or fro$ other sources throu&h 4" a&ree$ents for urchase of
ower for distribution and su'y within the StateJ
c. faci'itate intra!state trans$ission and whee'in& of e'ectricityJ
d. issue 'icences to ersons see4in& to act as trans$ission
'icensees< distribution 'icensees and e'ectricity traders with
resect to their oerations within the StateJ
e. ro$ote con&enration and &eneration of e'ectricity fro$
renewab'e sources of ener&y by rovidin& suitab'e $easures
for connectivity with the &rid and sa'e of e'ectricity to any
erson< and a'so secify< for urchase of e'ectricity fro$ such
sources< a ercenta&e of the tota' consu$tion of e'ectricity in
the area of a distribution 'icenceJ
f. ad>udicate uon the disutes between the 'icensees< and
&eneratin& co$anies and to refer any disute for arbitrationJ
&. 'evy fee for the uroses of this ActJ
*"
h. secify State -rid 7ode consistent with the -rid 7ode
secified under c'ause :h; of sub!section :1; of section ),J
i. secify or enforce standards with resect to =ua'ity< continuity
and re'iabi'ity of service by 'icenseesJ
>. fiA the tradin& $ar&in in the intra!State tradin& of e'ectricity< if
considered< necessaryJ and
4. dischar&e such other functions as $ay be assi&ned to it under
this Act.
21. 1he State 7o$$ission sha'' advise the State -overn$ent on a'' or any
of the fo''owin& $atters< na$e'y C!.
i. ro$otion of co$etition< efficiency and econo$y in activities
of the e'ectricity industryJ
ii. ro$otion of invest$ent in e'ectricity industryJ
iii. reor&aniEation and restructurin& of e'ectricity industry in the
StateJ
iv. $atters concernin& &eneration< trans$ission < distribution and
tradin& of e'ectricity or any other $atter referred to the State
7o$$ission by that -overn$ent.
2. 1he State 7o$$ission sha'' ensure transarency whi'e eAercisin& its
owers and dischar&in& its functions.
3. In dischar&e of its functions the State 7o$$ission sha'' be &uided by
the Nationa' +'ectricity Po'icy< Nationa' +'ectricity P'an and tariff
o'icy ub'ished under section 3.
State Advisory Committee
CE#
4. 1he State 7o$$ission $ay< by notification< estab'ish with effect fro$
such date as it $ay secify in such notification< a 7o$$ittee to be 4nown as
the State Advisory 7o$$ittee.
5. 1he State Advisory 7o$$ittee sha'' consist of not $ore than twenty!
one $e$bers to reresent the interests of co$$erce< industry<
transort< a&ricu'ture< 'abour< consu$ers< non!&overn$enta'
*)
or&anisations and acade$ic and research bodies in the e'ectricity
sector.
". 1he 7hairerson of the State 7o$$ission sha'' be the eA!officio
7hairerson of the State Advisory 7o$$ittee and the Me$bers of the
State 7o$$ission and the Secretary to State -overn$ent in char&e of
the Ministry or 7o$$ission and the Secretary to State -overn$ent in
char&e of the Ministry or 2eart$ent dea'in& with 7onsu$er Affairs
and Pub'ic 2istribution Syste$ sha'' be the eA!officio Me$bers of the
7o$$ittee.
"7=ects o8 State Advisory Committee
CC#
1he ob>ects of the State Advisory 7o$$ittee sha'' be to advise the
7o$$ission on 6
i. $a>or =uestions of o'icyJ
ii. $atters re'atin& to =ua'ity< continuity and eAtent of service rovided by
the 'icenseesJ
iii. co$'iance by 'icensees with the conditions and re=uire$ents of their
'icenceC
iv. rotection of consu$er interestJ and
v. e'ectricity su'y and overa'' standards of erfor$ance by uti'ities.
#ppropriate Commission % Other Provisions
Term o8 o88ice and conditions o8 service o8 mem7ers
CA#
1. 1he 7hairerson or other Me$ber sha'' ho'd office for a ter$
of five years fro$ the date he enters uon his officeJ Provided that the
7hairerson or other Me$ber in the 7entra' 7o$$ission or the State
7o$$ission sha'' not be e'i&ib'e for re!aoint$ent in the sa$e
caacity as the 7hairerson or a Me$ber in that 7o$$ission in which
he had ear'ier he'd office as such C Provided further that no
7hairerson or Me$ber sha'' ho'd office as such after he has attained
the a&e of siAty!five years.
**
2. 1he sa'ary< a''owances and other ter$s and conditions of service of the
7hairerson and Me$bers sha'' be such as $ay be rescribed by the
Aroriate -overn$ent. Provided that the sa'ary< a''owances and
other ter$s and conditions of service of the Me$bers< sha'' not be
varied to their disadvanta&e after aoint$ent.
3. +very Me$ber sha''< before enterin& uon his office< $a4e and
subscribe to an oath of office and secrecy in such for$ and in such
$anner and before such authority as $ay be rescribed.
4. Notwithstandin& anythin& contained in sub!section :1;< a Me$ber
$ay!
a. #e'in=uish his office by &ivin& in writin& to the Aroriate
-overn$ent a notice of not 'ess than three $onthsJ or
b. be re$oved fro$ his office in accordance with the rovisions
of section ,..
2. Any $e$ber ceasin& to ho'd office as such sha'' 6
a. not accet any co$$ercia' e$'oy$ent for a eriod of two
years fro$ the date he ceases to ho'd such officeJ and
b. not reresent any erson before the 7entra' 7o$$ission or any
State 7o$$ission in any $anner.
+A'anation. ! 8or the uroses of this sub!section Rco$$ercia'
e$'oy$entQ $eans e$'oy$ent in any caacity in any or&anisation
which has been a arty to the roceedin&s before the Aroriate
7o$$ission or e$'oy$ent in any caacity under< or a&ency of< a
erson en&a&ed in tradin&< co$$ercia'< industria' or financia' business
in e'ectricity industry and inc'udes a director of a co$any or artner
of a fir$ or settin& u ractice either indeendent'y or as artner of a
fir$ or as an advisor or a consu'tant.
+emoval o8 mem7er#
A&#
3. No Me$ber sha'' be re$oved fro$ office eAcet in accordance with
the rovisions of this section.
4. 1he 7entra' 7o$$ission< in the case of a Me$ber of the 7entra'
7o$$ission< and the State -overn$ent< in the case of a Me$ber of
*,
the State 7o$$ission< $ay by order re$ove fro$ office any Me$ber<
if he!
a. has been ad>ud&ed an inso'ventJ
b. has been convicted of an offence which< in the oinion of the
Aroriate -overn$ent< invo'ves $ora' turitudeJ
c. has beco$e hysica''y or $enta''y incaab'e of actin& as a
Me$berJ
d. has ac=uired such financia' or other interest as is 'i4e'y to
affect re>udicia''y his functions as a Me$berJ
e. has so abused his osition as to render his continuance in office
re>udicia' to the ub'ic interestJ or
f. has been &ui'ty of roved $isbehaviourC Provided that no
Me$ber sha'' be re$oved fro$ his office on any &round
secified in c'auses :d;< :e; and :f; un'ess the 7hairerson of
the Ae''ate 1ribuna' on a reference bein& $ade to hi$ in this
beha'f by the 7entra' -overn$ent< or the State -overn$ent< as
the case $ay be< has< on an in=uiry< he'd by hi$ in accordance
with such rocedure as $ay be rescribed by the 7entra'
-overn$ent< reorted that the Me$ber ou&ht on such &round
or &rounds to be re$oved.
5. 1he 7entra' -overn$ent or the State -overn$ent< as the case $ay be<
$ay< in consu'tation with the 7hairerson of the Ae''ate 1ribuna'
susend any Me$ber of the Aroriate 7o$$ission in resect of
who$ a reference has been $ade to the 7hairerson of the Ae''ate
1ribuna'< under sub!section :2; unti' the 7entra' -overn$ent or the
State -overn$ent< as the case $ay be< has assed orders on receit of
the reort of the 7hairerson of the Ae''ate 1ribuna'< on such
reference C
Provided that nothin& contained in this section sha'' a'y to the
7hairerson of the Aroriate 7o$$ission who< at the ti$e of his
aoint$ent as such is a sittin& Fud&e of the Sure$e court or the
chief Fustice of a Gi&h 7ourt or a Fud&e of a Gi&h 7ourt.
Proceedings and powers o the #ppropriate Commission
,.
Secretary "88icers and ot5er
A%#
". 1he Aroriate 7o$$ission $ay aoint a Secretary to eAercise
such owers and erfor$ such duties as $ay be secified.
employees o8 Appropriate Commission #
such owers and erfor$ such duties as $ay be secified.
). 1he Aroriate 7o$$ission $ay< with the arova' of the Aroriate -overn$ent<
secify the nu$bers< nature and cate&ories of other officers and e$'oyees.
*. 1he sa'aries and a''owances ayab'e to< and other ter$ and conditions
of service of< the Secretary< officers and other e$'oyees sha'' be such
as $ay be secified with the arova' of the Aroriate -overn$ent.
,. 1he Aroriate 7o$$ission $ay aoint consu'tants re=uired to
assist that 7o$$ission in the dischar&e of its functions on the ter$s
and conditions as $ay be secified. B o8 %A&C
Proceedings o8 Appropriate Commission#
A(#
1.. 1he Aroriate 7o$$ission sha'' $eet at the head office or any
other 'ace at such ti$e as the 7hairerson $ay direct< and sha'' observe such
ru'es of rocedure in re&ard to the transaction of business at its $eetin&s
:inc'udin& the =uoru$ at its $eetin&s; as it $ay secify.
11. 1he 7hairerson< or if he is unab'e to attend a $eetin& of the
Aroriate 7o$$ission< any other Me$ber no$inated by the
7hairerson in this beha'f and< in the absence of such no$ination or
where there is no 7hairerson< any Me$ber chosen by the Me$bers
resent fro$ a$on& the$se'ves< sha'' reside at the $eetin&.
12. A'' =uestions which co$e u before any $eetin& of the Aroriate
7o$$ission sha'' be decided by a $a>ority of votes of the Me$bers
resent and votin&< and in the event of an e=ua'ity of votes< the
7hairerson or in his absence< the erson residin& sha'' have a
second or castin& vote.
13. Save as otherwise rovided in sub!section :3;< every Me$ber sha''
have one vote.
,1
14. A'' orders and decisions of the Aroriate 7o$$ission sha'' be
authenticated by its Secretary or any other officer of the 7o$$ission
du'y authorised by the 7hairerson in this beha'f.
.acancies; etc#; not to invalidate proceedings#
A)#
No act or roceedin&s of the Aroriate 7o$$ission sha'' be =uestioned or
sha'' be inva'idated $ere'y on the &round of eAistence of any vacancy or
defect in the constitution of the Aroriate 7o$$ission.
Po:ers o8 Appropriate Commission
A4#
15. 1he Aroriate 7o$$ission sha''< for the uroses of any in=uiry or
roceedin&s under this Act< have the sa$e owers as are vested in a civi' court
under the 7ode of 7ivi' Procedure< 1,.* in resect of the fo''owin& $atters<
na$e'yC !
a. su$$onin& and enforcin& the attendance of any erson and
eAa$inin& hi$ on oathJ
b. discovery and roduction of any docu$ent or other $ateria'
ob>ect roducib'e as evidenceJ
c. receivin& evidence on affidavitsJ
d. re=uisitionin& of any ub'ic recordJ
e. issuein& co$$ission for the eAa$ination of witnessesJ
f. reviewin& its decisions< directions and ordersJ B o8 %A&C# B&
&. any other $atter which $ay be rescribed.
1". 1he Aroriate 7o$$ission sha'' have the owers to ass such
interi$ order in any roceedin&< hearin& or $atter before the
Aroriate 7o$$ission< as that 7o$$ission $ay consider
aroriate.
1). 1he Aroriate 7o$$ission $ay authorise any erson< as it dee$s
fit< to reresent the interest of the consu$ers in the roceedin&s before
it.
Proceedings 7e8ore Commission#
AB#
,2
A'' roceedin&s before the Aroriate 7o$$ission sha'' be dee$ed to be
>udicia' roceedin&s within the $eanin& of sections 1,3 and 22* of the Indian
Pena' 7ode and the Aroriate 7o$$ission sha'' be dee$ed to be a civi'
court for the uroses of sections 345 and 34" of the 7ode of 7ri$ina'
Procedure< 1,)3.
4B o8 %C'&# ( o8 %AE4#
Po:ers o8 entry and seiH/re#
A'#
1he Aroriate 7o$$ission or any officer< not be'ow the ran4 of a -aEetted
9fficer secia''y authorised in this beha'f by the 7o$$ission< $ay enter any
bui'din& or 'ace where the 7o$$ission has reason to be'ieve that any
docu$ent re'atin& to the sub>ect $atter of the in=uiry $ay be found< and $ay
seiEe any such docu$ent or ta4e eAtracts or coies therefro$ sub>ect to the
rovisions of section 1.. of the 7ode of 7ri$ina' Procedure< 1,)3< insofar as
it $ay be a'icab'e.
Delegation #
AE#
1he Aroriate 7o$$ission $ay< by &enera' or secia' order in writin&<
de'e&ate to any Me$ber< Secretary officer of the Aroriate 7o$$ission or
any other erson sub>ect to such conditions< if any< as $ay be secified in the
order< such of its owers and functions under this Act :eAcet the owers to
ad>udicate disutes under Section ), and Section *" and the owers to $a4e
re&u'ations under section 1)* or section 1*1; as it $ay dee$ necessary.
&rants$ 'und$ #ccounts$ #udit and (eport
2rants and loans 7y Central 2overnment
AC#
1he 7entra' -overn$ent $ay< after due aroriation $ade by Par'ia$ent in
this beha'f< $a4e to the 7entra' 7o$$ission &rants and 'oans of such su$s of
$oney as that -overn$ent $ay consider necessary.
Esta7lis5ment o8 F/nd 7y Central 2overnment
AA#
1*. 1here sha'' be constituted a 8und to be ca''ed the 7entra' +'ectricity
#e&u'atory 7o$$ission 8und and there sha'' be credited thereto!
a. any &rants and 'oans $ade to the 7entra' 7o$$ission by the
7entra' -overn$ent under section ,*J
,3
b. a'' fees received by the 7entra' 7o$$ission under this ActJ
c. a'' su$s received by the 7entra' 7o$$ission fro$ such other
sources as $ay be decided uon by the 7entra' -overn$ent.
1,. 1he 8und sha'' be a'ied for $eetin& 6
a. the sa'ary< a''owances and other re$uneration of 7hairerson<
Me$bers< Secretary< officers and other e$'oyees of the
7entra' 7o$$issionJ
b. the eAenses of the 7entra' 7o$$ission in dischar&e of its
function under section ),J
c. the eAenses on ob>ects and for uroses authorised by this
Act.
2.. 1he 7entra' -overn$ent $ay< in consu'tation with the 7o$tro''er
and Auditor!-enera' of India< rescribe the $anner of a'yin& the
8und for $eetin& the eAenses secified in c'ause :b; or c'ause :c; of
sub!section :2;.
Acco/nts and A/dit o8 Central Commission#
%&&#
21. 1he 7entra' 7o$$ission sha'' $aintain roer accounts and other
re'evant records and reare an annua' state$ent of accounts in such for$ as
$ay be rescribed by the 7entra' -overn$ent in consu'tation with the
7o$tro''er and Auditor!-enera' of India.
22. 1he accounts of the 7entra' 7o$$ission sha'' be audited by the
7o$tro''er and Auditor!-enera' of India at such interva's as $ay be
secified by hi$ and any eAenditure incurred in connection with such
audit sha'' be ayab'e by the 7entra' 7o$$ission to the 7o$tro''er
and Auditor -enera' of India.
23. 1he 7o$tro''er and Auditor!-enera' of India and any erson
aointed by hi$ in connection with the auditin& of the accounts of
the 7entra' 7o$$ission under this Act sha'' have the sa$e ri&hts and
rivi'e&es and authority in connection with such audit as the
7o$tro''er and Auditor!-enera' of India has in connection with the
audit of the -overn$ent accounts and< in articu'ar< sha'' have the
ri&ht to de$and the roduction of boo4s< accounts< connected
,4
vouchers and other docu$ents and aers and to insect any of the
offices of the 7entra' 7o$$ission.
24. 1he accounts of the 7entra' 7o$$ission< as certified by the
7o$tro''er and Auditor! -enera' of India or any other erson
aointed by hi$ in this beha'f< to&ether with the audit reort thereon<
sha'' be forwarded annua''y to the 7entra' -overn$ent and that
-overn$ent sha'' cause the sa$e to be 'aid< as soon as $ay be after it
is received< before each Gouse of Par'ia$ent.
Ann/al +eport o8 Central Commission
%&%#
25. 1he 7entra' 7o$$ission sha'' reare once every year< in such for$
and at such ti$e as $ay be rescribed< an annua' reort &ivin& a su$$ary of
its activities durin& the revious year and coies of the reort sha'' be
forwarded to the 7entra' -overn$ent.
2". A coy of the reort received under sub!section :1; sha'' be 'aid< as
soon as $ay be after it is received< before each Gouse of Par'ia$ent.
2rants and !oans 7y State 2overnment
%&(#
1he State -overn$ent $ay< after due aroriation $ade by 0e&is'ature of a
State in this beha'f< $a4e to the State 7o$$ission &rants and 'oans of such
su$s of $oney as that -overn$ent $ay consider necessary.
Esta7lis5ment o8 F/nd 7y State 2overnment
%&)#
2). 1here sha'' be constituted a 8und to be ca''ed the State +'ectricity
#e&u'atory 7o$$ission fund and there sha'' be credited thereto!
a. any &rants and 'oans $ade to the State 7o$$ission by the
State -overn$ent under Section 1.2J
b. a'' fees received by the State 7o$$ission under this ActJ
c. a'' su$s received by the State 7o$$ission fro$ such other
sources as $ay be decided uon by the State -overn$ent.
2*. 1he 8und sha'' be a'ied for $eetin& 6
,5
a. the sa'ary< a''owances and other re$uneration of 7hairerson<
Me$bers< Secretary< officers and other e$'oyees of the State
7o$$issionJ
b. the eAenses of the State 7o$$ission in dischar&e of its
function under Section *"J and
c. the eAenses on ob>ects and for uroses authorised by this
Act.
2,. 1he State -overn$ent $ay< in consu'tation with the 7o$tro''er and
Auditor!-enera' of India< rescribe the $anner of a'yin& the 8und
for $eetin& the eAenses secified in c'ause :b; or c'ause :c; of sub!
section :2;.
Acco/nts and a/dit o8 State Commission
%&4#
3.. 1he State 7o$$ission sha'' $aintain roer accounts and other
re'evant records and reare annua' state$ent of accounts in such for$s as
$ay be rescribed by the State -overn$ent in consu'tation with the
7o$tro''er and Auditor!-enera' of India.
31. 1he Accounts of the State 7o$$ission sha'' be audited by the
7o$tro''er and Auditor!-enera' of India at such interva's as $ay be
secified by hi$ and any eAenditure incurred in connection with such
audit sha'' be ayab'e by the State 7o$$ission to the 7o$tro''er and
Auditor! -enera' of India.
32. 1he 7o$tro''er and Auditor!-enera' of India and any erson
aointed by hi$ in connection with the audit of the accounts of the
State 7o$$ission under this Act sha'' have the sa$e ri&hts and
rivi'e&es and authority in connection with such audit as the
7o$tro''er and Auditor!-enera' of India &enera''y has in connection
with the audit of -overn$ent accounts and< in articu'ar< sha'' have
the ri&ht to de$and the roduction of boo4s< accounts< connected
vouchers and other docu$ents and aers and to insect any of the
offices of the State 7o$$ission.
33. 1he accounts of the State 7o$$ission< as certified by the 7o$tro''er
and Auditor!-enera' of India or any other erson aointed by hi$ in
this beha'f< to&ether with the audit reort thereon sha'' be forwarded
annua''y to the State -overn$ent and that -overn$ent sha'' cause the
,"
sa$e to be 'aid < as soon as $ay be after it is received< before the State
0e&is'ature.
Ann/al report o8 State Commission
%&B#
34. 1he State 7o$$ission sha'' reare once every year in such for$ and
at such ti$e as $ay be rescribed< an annua' reort &ivin& a su$$ary of its
activities durin& the revious year and coies of the reort sha'' be forwarded
to the State -overn$ent.
35. A coy of the reort received under sub!section : 1 ; sha'' be 'aid< as
soon as $ay be after it is received< before the State 0e&is'ature.
/dget o8 Appropriate Commission
%&'#
1he Aroriate 7o$$ission sha'' reare< in such for$ and at such ti$e in
each financia' year as $ay be rescribed< its bud&et for the neAt financia' year<
showin& the esti$ated receits and eAenditure of that 7o$$ission and
forward the sa$e to the Aroriate -overn$ent.
Directions 7y Central 2overnment
%&E#
3". In the dischar&e of its functions< the 7entra' 7o$$ission sha'' be
&uided by such directions in $atters of o'icy invo'vin& ub'ic interest as the
7entra' -overn$ent $ay &ive to it in writin&.
3). If any =uestion arises as to whether any such direction re'ates to a
$atter of o'icy invo'vin& ub'ic interest< the decision of the 7entra'
-overn$ent thereon sha'' be fina'.
Directions 7y State 2overnment#
%&C#
3*. In the dischar&e of its functions< the State 7o$$ission sha'' be &uided
by such directions in $atters of o'icy invo'vin& ub'ic interest as the State
-overn$ent $ay &ive to it in writin&.
3,. If any =uestion arises as to whether any such direction re'ates to a
$atter of o'icy invo'vin& ub'ic interest< the decision of the State
-overn$ent thereon sha'' be fina'.
Directions to -oint Commission#
%&A#
,)
Notwithstandin& anythin& contained in this Act< where any Foint 7o$$ission
is estab'ished under section *3 6
:a; the -overn$ent of the State< for which the Foint 7o$$ission is 53
estab'ished< sha'' be co$etent to &ive any direction under this Act
on'y in cases where such direction re'ates to $atter within the
eAc'usive territoria' >urisdiction of the StateJ :b; the 7entra'
-overn$ent a'one sha'' be co$etent to &ive any direction under this
Act where such direction re'ates to a $atter within the territoria'
>urisdiction of two or $ore States or ertainin& to a ?nion territory if
the articiatin& -overn$ents fai' to reach an a&ree$ent or the
articiatin& States or $a>ority of the$ re=uest the 7entra'
-overn$ent to issue such directions.

,*
PA+T X%
Appellate Tri7/nal For Electricity
Esta7lis5ment o8 Appellate Tri7/nal#
%%&#
1he 7entra' -overn$ent sha''< by notification< estab'ish an Ae''ate 1ribuna' to be 4nown as the
Ae''ate 1ribuna' for +'ectricity to hear aea's a&ainst the orders of the ad>udicatin& officer or the
Aroriate 7o$$ission under this Act.
Appeal to Appellate Tri7/nal#
%%%#
1. Any erson a&&rieved by an order $ade by an ad>udicatin& officer under this Act :eAcet
under section 12); or an order $ade by the Aroriate 7o$$ission under this Act $ay
refer an aea' to the Ae''ate 1ribuna' for +'ectricityC Provided that any erson aea'in&
a&ainst the order of the ad>udicatin& officer 'evyin& and ena'ty sha''< whi'e fi''in& the aea'
< deosit the a$ount of such ena'tyC Provided further that where in any articu'ar case< the
Ae''ate 1ribuna' is of the oinion that the deosit of such ena'ty wou'd cause undue
hardshi to such erson< it $ay disense with such deosit sub>ect to such conditions as it
$ay dee$ fit to i$ose so as to safe&uard the rea'isation of ena'ty.
2. +very aea' under sub!section :1; sha'' be fi'ed within a eriod of forty!five days fro$ the
date on which a coy of the order $ade by the ad>udicatin& officer or the Aroriate
7o$$ission is received by the a&&rieved erson and it sha'' be in such for$< verified in such
$anner and be acco$anied by such fee as $ay be rescribedC Provided that the Ae''ate
1ribuna' $ay entertain an aea' after the eAiry of the said eriod of forty!five days if it is
satisfied that there was sufficient cause for not fi'in& it within that eriod.
3. 9n receit of an aea' under sub!section :1;< the Ae''ate 1ribuna' $ay< after &ivin& the
arties to the aea' an oortunity of bein& heard< ass such orders thereon as it thin4s fit<
confir$in&< $odifyin& or settin& aside the order aea'ed a&ainst.
4. 1he Ae''ate 1ribuna' sha'' send a coy of every order $ade by it to the arties to the
aea' and to the concerned ad>udicatin& officer or the Aroriate 7o$$ission< as the case
$ay be.
5. 1he aea' fi'ed before the Ae''ate 1ribuna' under sub!section :1; sha'' be dea't with by it
as eAeditious'y as ossib'e and endeavour sha'' be $ade by it to disose of the aea'
fina''y within one hundred and ei&hty days fro$ the date of receit of the aea'C Provided
that where any aea' cou'd not be disosed off within the said eriod of one hundred and
,,
ei&hty days< the Ae''ate 1ribuna' sha'' record its reasons in writin& for not disosin& of the
aea' within the said eriod.
". 1he Ae''ate 1ribuna' $ay< for the urose of eAa$inin& the 'e&a'ity< roriety or
correctness of any order $ade by the ad>udicatin& officer or 'e&a'ity< roriety or correctness
of any order $ade by the ad>udicatin& officer or the Aroriate 7o$$ission under this Act<
as the case $ay be< in re'ation to any roceedin&< on its own $otion or otherwise< ca'' for the
records of such roceedin&s and $a4e such order in the case as it thin4s fit.
Composition o8 Appellate Tri7/nal#
%%(#
1. 1he Ae''ate 1ribuna' sha'' consist of a 7hairerson and three other Me$bers.
2. Sub>ect to the rovisions of this Act<!
a. the >urisdiction of the Ae''ate 1ribuna' $ay be eAercised by Benches thereofJ
b. a Bench $ay be constituted by the 7hairerson of the Ae''ate 1ribuna' with two or
$ore Me$bers of the Ae''ate 1ribuna' as the 7hairerson of the Ae''ate 1ribuna'
$ay dee$ fitC Provided that every Bench constituted under this c'ause sha'' inc'ude at
'east one Fudicia' Me$ber and one 1echnica' Me$berJ
c. the Benches of the Ae''ate 1ribuna' sha'' ordinari'y sit at 2e'hi and such other
'aces as the 7entra' -overn$ent $ay< in consu'tation with the 7hairerson of the
Ae''ate 1ribuna'< notifyJ
d. the 7entra' -overn$ent sha'' notify the areas in re'ation to which each Bench of the
Ae''ate 1ribuna' $ay eAercise >urisdiction.
3. Notwithstandin& anythin& contained in sub!section :2;< the 7hairerson of the Ae''ate
1ribuna' $ay transfer a Me$ber of the Ae''ate 1ribuna' fro$ one Bench to another Bench.
+A'anation.! 8or the uroses of this 7hater<!
i. P Fudicia' Me$berQ $eans a Me$ber of the Ae''ate 1ribuna' aointed as such
under sub!c'ause :i; of ca'use :b; of sub!section :1; of section 113< and inc'udes the
7hairerson of the Ae''ate 1ribuna'J
ii. P 1echnica' Me$berQ $eans a Me$ber of the Ae''ate 1ribuna' aointed as such
under sub!c'ause :ii; or sub!c'ause :iii; of c'ause :b; of subsection :1; of section 113.
G/ali8ications 8or appointment o8 C5airperson and 0em7er o8 t5e Appellate Tri7/nal#
%%)#
1..
1. A erson sha'' not be =ua'ified for aoint$ent as the 7hairerson of the Ae''ate 1ribuna'
or a Me$ber of the Ae''ate 1ribuna' un'ess he!
a. in the case of the 7hairerson of the Ae''ate 1ribuna'< is< or has been< a >ud&e of the
Sure$e 7ourt or the 7hief Fustice of a Gi&h 7ourtJ and
b. in the case of a Me$ber of the Ae''ate 1ribuna'<!
i. is< or has been< or is =ua'ified to be< a Fud&e of a Gi&h 7ourtJ or
ii. is< or has been< a Secretary for at 'east one year in the Ministry or 2eart$ent
of the 7entra' -overn$ent dea'in& with econo$ic affairs or $atters or
infrastructureJ or
iii. is< or has been< a erson of abi'ity and standin&< havin& ade=uate 4now'ed&e
or eAerience in dea'in& with the $atters re'atin& to e'ectricity &eneration<
trans$ission and distribution and re&u'ation or econo$ics< co$$erce< 'aw or
$ana&e$ent.
2. 1he 7hairerson of the Ae''ate 1ribuna' sha'' be aointed by the 7entra' -overn$ent
after consu'tation with the 7hief Fustice of India.
3. 1he Me$bers of the Ae''ate 1ribuna' sha'' be aointed by the 7entra' -overn$ent on the
reco$$endation of the Se'ection 7o$$ittee referred to in section )*.
4. Before aointin& any erson for aoint$ent as 7hairerson or other Me$ber of the
Ae''ate 1ribuna'< the 7entra' -overn$ent sha'' satisfy itse'f that such erson does not
have any financia' or other interest which is 'i4e'y to affect re>udicia''y his functions as
such 7hairerson or Me$ber.
Term o8 o88ice#
%%4#
1he 7hairerson of the Ae''ate 1ribuna' or a Me$ber of the Ae''ate 1ribuna' sha'' ho'd office
as such for a ter$ of three years fro$ the date on which he enters uon his officeC
Provided that such 7hairerson or other Me$ber sha'' be e'i&ib'e for reaoint$ent for a second
ter$ of three yearsC
Provided further that no 7hairerson of the Ae''ate 1ribuna' or Me$ber of the Ae''ate 1ribuna'
sha'' ho'd office as such after he has attained<!
a. in the case of the 7hairerson of the Ae''ate 1ribuna' < the a&e of seventy yearsJ
b. in the case of a Me$ber of the Ae''ate 1ribuna'< the a&e of siAty!five years.
1.1
Terms and conditions o8 service#
%%B#
1he sa'ary and a''owances ayab'e to< and the other ter$s and conditions of service of< the
7hairerson of the Ae''ate 1ribuna' and Me$bers of the Ae''ate 1ribuna' sha'' be such as $ay
be rescribed by the 7entra' -overn$ent C
Provided that neither the sa'ary and a''owances nor the other ter$s and conditions of service of the
7hairerson of the Ae''ate 1ribuna' or a Me$ber of the Ae''ate 1ribuna' sha'' be varied to his
disadvanta&e after aoint$ent.
.acancies#
%%'#
If< for reason other than te$orary absence< any vacancy occurs in the office of the 7hairerson of
the Ae''ate 1ribuna' or a Me$ber of the Ae''ate 1ribuna'< the 7entra' -overn$ent sha'' aoint
another erson in accordance with the rovisions of this Act to fi'' the vacancy and the roceedin&s
$ay be continued before the Ae''ate 1ribuna' fro$ the sta&e at which the vacancy is fi''ed.
+esignation and removal
%%E#
1. 1he 7hairerson of the Ae''ate 1ribuna' or a Me$ber of the Ae''ate 1ribuna' $ay< by
notice in writin& under his hand addressed to the 7entra' -overn$ent< resi&n his officeC
Provided that the 7hairerson of the Ae''ate 1ribuna' or a Me$ber of the Ae''ate
1ribuna' sha''< un'ess he is er$itted by the 7entra' -overn$ent to re'in=uish his office
sooner< continue to ho'd office unti' the eAiry of three $onths fro$ the date of receit of
such notice or unti' a erson du'y aointed as his successor enters uon his office or unti'
the eAiry of ter$ of office< whichever is the ear'iest.
2. 1he 7hairerson of the Ae''ate 1ribuna' or a Me$ber of the Ae''ate 1ribuna' sha'' not
be re$oved fro$ his office eAcet by an order by the 7entra' -overn$ent on the &round of
roved $isbehaviour or incaacity after an in=uiry $ade by a >ud&e of the Sure$e 7ourt as
the 7entra' -overn$ent $ay aoint for this urose in which the 7hairerson or a Me$ber
of the Ae''ate 1ribuna' concerned has been infor$ed of the char&es a&ainst hi$ and &iven
a reasonab'e oortunity of bein& heard in resect of such char&es.
0em7er to act as C5airperson in certain circ/mstances#
%%C#
1. In the event of the occurrence of any vacancy in the office of the 7hairerson of the
Ae''ate 1ribuna' by reason of his death< resi&nation or otherwise< the senior!$ost Me$ber
of the Ae''ate 1ribuna' sha'' act as the 7hairerson of the Ae''ate 1ribuna' unti' the date
on which a new 7hairerson< aointed in accordance with the rovisions of this Act to fi''
such vacancy< enters uon his office.
1.2
2. 3hen the 7hairerson of the Ae''ate 1ribuna' is unab'e to dischar&e his functions owin& to
absence< i''ness or any other cause< the senior$ost Me$ber of the Ae''ate 1ribuna' sha''
dischar&e the functions of the 7hairerson of the Ae''ate 1ribuna' unti' the date on which
the 7hairerson of the Ae''ate 1ribuna' resu$es his duties.
"88icers and ot5er employees o8 Appellate Tri7/nal##
%%A#
1. 1he 7entra' -overn$ent sha'' rovide the Ae''ate 1ribuna' with such officers and other
e$'oyees as it $ay dee$ fit.
2. 1he officers and other e$'oyees of the Ae''ate 1ribuna' sha'' dischar&e their functions
under the &enera' suerintendence of the 7hairerson of the Ae''ate 1ribuna'.
3. 1he sa'aries and a''owances and other ter$s and conditions of service of the officers and
other e$'oyees of the Ae''ate 1ribuna' sha'' be such as $ay be rescribed by the 7entra'
-overn$ent.
Proced/re and po:ers o8 Appellate Tri7/nal#
%(&
1. 1he Ae''ate 1ribuna' sha'' not be bound by the rocedure 'aid down by the 7ode of 7ivi'
Procedure< 1,.*< but sha'' be &uided by the rinci'es of natura' >ustice and< sub>ect to the
other rovisions of this Act< the Ae''ate 1ribuna' sha'' have owers to re&u'ate its own
rocedure. B o8 %A&C
2. 1he Ae''ate 1ribuna' sha'' have< for the uroses of B o8 %A&Cdischar&in& its functions
under this Act< the sa$e owers as are vested in a civi' court under the 7ode of 7ivi'
Procedure< 1,.*< whi'e tryin& a suit< in resect of the fo''owin& $atters< na$e'yC!
a. su$$onin& and enforcin& the attendance of any erson and eAa$inin& hi$ on oathJ
b. re=uirin& the discovery and roduction of docu$entsJ
c. receivin& evidence on affidavitsJ
d. sub>ect to the rovisions of sections 123 and 124 of the Indian +vidence Act< 1*)2<
re=uisitionin& any ub'ic record or docu$ent or % o8 %CE( coy of such record or
docu$ent fro$ any officeJ
e. issuin& co$$issions for the eAa$ination of witnesses or docu$entsJ
f. reviewin& its decisionsJ
&. dis$issin& a reresentation of defau't or decidin& it eA arteJ
h. settin& aside any order of dis$issa' or any reresentation for defau't or any order
assed by it eA arteJ
1.3
i. any other $atter which $ay be rescribed by the 7entra' -overn$ent. B o8 %A&C % o8
%CE( 4B o8 %C'&#
3. An order $ade by the Ae''ate 1ribuna' under this Act sha'' be eAecutab'e by the Ae''ate
1ribuna' as a decree of civi' court and< for this urose< the Ae''ate 1ribuna' sha'' have a''
the owers of a civi' court.
4. Notwithstandin& anythin& contained in sub!section :3;< the Ae''ate 1ribuna' $ay trans$it
any order $ade by it to a civi' court havin& 'oca' >urisdiction and such civi' court sha''
eAecute the order as if it were a decree $ade by that court.
4B o8 %C'&#
5. A'' roceedin&s before the Ae''ate 1ribuna' sha'' be dee$ed to be >udicia' roceedin&s
within the $eanin& of sections 1,3 and 22* of the Indian of 1,)4. Pena' 7ode and the
Ae''ate 1ribuna' sha'' be dee$ed to be a civi' court for the uroses of section 345 and
34" of the 7ode of 7ri$ina' Procedure< 1,)3 .( o8 %AE4#
Po:er o8 C5airperson o8 Appellate Tri7/nal
%(%#
1he 7hairerson of the Ae''ate 1ribuna' sha'' eAercise &enera' ower of suer!intendance and
contro' over the Aroriate 7o$$ission.
Distri7/tion o8 7/siness amongst enc5es and trans8er o8 cases 8rom one enc5 to anot5er
enc5#
%((#
1. 3here Benches are constituted< the 7hairerson of the Ae''ate 1ribuna' $ay< fro$ ti$e to
ti$e< by notification< $a4e rovisions as to the distribution of the business of the Ae''ate
1ribuna' a$on&st the Benches and a'so rovide for the $atters which $ay be dea't with by
each Bench.
2. 9n the a'ication of any of the arties and after notice to the arties< and after hearin& such
of the$ as he $ay desire to be heard< or on his own $otion without such notice< the
7hairerson of the Ae''ate 1ribuna' $ay transfer any case endin& before one Bench< for
disosa'< to any other Bench.
Decision to 7e 7y ma=ority#
%()#
If the Me$bers of the Ae''ate 1ribuna' of a Bench consistin& of two Me$bers differ in oinion on
any oint< they sha'' state the oint or oints on which they differ< and $a4e a reference to the
7hairerson of the Ae''ate 1ribuna' who sha'' either hear the oint or oints hi$se'f or refer the
case for hearin& on such oint or oints by one or $ore of the other Me$bers of the Ae''ate
1ribuna' and such oint or oints sha'' be decided accordin& to the oinion of the $a>ority of the
Me$bers of the Ae''ate 1ribuna' who have heard the case< inc'udin& those who first heard it.
1.4
+ig5t o8 appellant to ta9e assistance o8 legal practitioner and o8 Appropriate Commission to
appoint presenting o88icers#
%(4#
1. A erson referrin& an aea' to the Ae''ate 1ribuna' under this Act $ay either aear in
erson or ta4e the assistance of a 'e&a' ractitioner of his choice to resent his case before the
Ae''ate 1ribuna'< as the case $ay be.
2. 1he Aroriate 7o$$ission $ay authorise one or $ore 'e&a' ractitioners or any of its
officers to act as resentin& officers and every erson so authorised $ay resent the case
with resect to any aea' before the Ae''ate 1ribuna'< as the case $ay be.
Appeal to S/preme Co/rt#
%(B#
Any erson a&&rieved by any decision or order of the Ae''ate 1ribuna'< $ay< fi'e an aea' to the
Sure$e 7ourt within siAty days fro$ the date of co$$unication of the decision or order of the
Ae''ate 1ribuna'< to hi$< on any one or $ore of the &rounds secified in section 1.. of the 7ode
of 7ivi' Procedure<1,.*C
Provided that the Sure$e 7ourt $ay< if it is satisfied that the ae''ant was revented by sufficient
cause fro$ fi'in& the aea' within the said eriod< a''ow it to be fi'ed within a further eriod not
eAceedin& siAty days.

1.5
PA+T X%%
Investigation And En8orcement
Assessment#
%('#
1. If on an insection of any 'ace or re$ises or after insection of the e=ui$ents< &ad&ets<
$achines< devices found connected or used< or after insection of records $aintained by any
erson< the assessin& officer co$es to the conc'usion that such erson is indu'&in& in
unauthoriEed use of e'ectricity< he sha'' rovisiona''y assess to the best of his >ud&e$ent the
e'ectricity char&es ayab'e by such erson or by any other erson benefited by such use.
2. 1he order of rovisiona' assess$ent sha'' be served uon the erson in occuation or
ossession or in char&e of the 'ace or re$ises in such $anner as $ay be rescribed.
3. 1he erson< on who$ a notice has been served under subsection :2; sha'' be entit'ed to fi'e
ob>ections< if any< a&ainst the rovisiona' assess$ent before the assessin& officer< who $ay<
after affordin& a reasonab'e oortunity of hearin& to such erson< ass a fina' order of
assess$ent of the e'ectricity char&es ayab'e by such erson.
4. Any erson served with the order of rovisiona' assess$ent< $ay< accet such assess$ent
and deosit the assessed a$ount with the 'icensee within seven days of service of such
rovisiona' assess$ent order uon hi$C Provided that in case the erson deosits the
assessed a$ount he sha'' not be sub>ected to any further 'iabi'ity or any action by any
authority whatsoever.
5. If the assessin& officer reaches to the conc'usion that unauthorised use of e'ectricity has ta4en
'ace< it sha'' be resu$ed that such unauthoriEed use of e'ectricity was continuin& for a
eriod of three $onths i$$ediate'y recedin& the date of insection in case of do$estic and
a&ricu'tura' services and for a eriod of siA $onths i$$ediate'y recedin& the date of
insection for a'' other cate&ories of services< un'ess the onus is rebutted by the erson<
occuier or ossessor of such re$ises or 'ace.
". 1he assess$ent under this section sha'' be $ade at a rate e=ua' to one!and!ha'f ti$es the
tariff rates a'icab'e for the re'evant cate&ory of services secified in sub!section :5;.
+A'anation.! 8or the uroses of this section<
a. P assessin& officerQ $eans an officer of a State -overn$ent or Board or 'icensee< as
the case $ay be< desi&nated as such by the State -overn$ent J
b. P unauthorised use of e'ectricityQ $eans the usa&e of e'ectricity 6
1."
i. by any artificia' $eansJ or
ii. by a $eans not authorised by the concerned erson or authority or 'icenseeJ or
iii. throu&h a ta$ered $eterJ or
iv. for the urose other than for which the usa&e of e'ectricity was authorised.
Appeal to Appellate A/t5ority#
%(E#
1. Any erson a&&rieved by a fina' order $ade under section 12" $ay< within thirty days of the
said order< refer an aea' in such for$< verified in such $anner and be acco$anied by
such fee as $ay be secified by the State 7o$$ission< to an ae''ate authority as $ay be
rescribed.
2. No aea' a&ainst an order of assess$ent under sub!section :1; sha'' be entertained un'ess an
a$ount e=ua' to one third of the assessed a$ount is deosited in cash or by way of ban4
draft with the 'icensee and docu$entary evidence of such deosit has been enc'osed a'on&
with the aea'.
3. 1he ae''ate authority referred to in sub!section :1; sha'' disose of the aea' after hearin&
the arties and ass aroriate order and send coy of the order to the assessin& officer and
the ae''ant.
4. 1he order of the ae''ate authority referred to in sub!section :1; assed under sub!section
:3; sha'' be fina'.
5. No aea' sha'' 'ie to the ae''ate authority referred to in subsection :1; a&ainst the fina'
order $ade with the consent of the arties.
". 3hen a erson defau't in $a4in& ay$ent of assessed a$ount< he< in addition to the assessed
a$ount sha'' be 'iab'e to ay< on the eAiry of thirty days fro$ the date of order of
assess$ent< an a$ount of interest at the rate of siAteen er cent er annu$ co$ounded
every siA $onths.
Investigation o8 certain matters
%(C#
1. 1he Aroriate 7o$$ission $ay< on bein& satisfied that a 'icensee has fai'ed to co$'y
with any of the conditions of 'icence or a &eneratin& co$any or a 'icensee has fai'ed to
co$'y with any of the rovisions of this Act or ru'es or re&u'ations $ade thereunder< at any
ti$e< by order in writin&< direct any erson :hereafter in this section referred to as P
Investi&atin& AuthorityQ ; secified in the order to investi&ate the affairs of any &eneratin&
co$any or 'icensee and to reort to that 7o$$ission on any investi&ation $ade by such
Investi&atin& AuthorityC Provided that the Investi&atin& Authority $ay< wherever necessary<
1.)
e$'oy any auditor or any other erson for the urose of assistin& hi$ in any investi&ation
under this section.
2. Notwithstandin& anythin& to the contrary contained in section 235 of the 7o$anies Act<
1,5"< the Investi&atin& Authority $ay< at any ti$e< and sha''< on bein& directed so to do by
the Aroriate 7o$$ission< cause an insection to be $ade< by one or $ore of his officers<
of any 'icensee or &eneratin& co$any and his boo4s of accountJ and the Investi&atin&
Authority sha'' su'y to the 'icensee or &eneratin& co$any< as the case $ay be< a coy of
his reort on such insection.
3. It sha'' be the duty of every $ana&er< $ana&in& director or other officer of the 'icensee or
&eneratin& co$any< as the case $ay be< to roduce before the Investi&atin& Authority
directed to $a4e the investi&ation under subsection :1;< or insection under sub!section :2;<
a'' such boo4s of account< re&isters and other docu$ents in his custody or ower and to
furnish hi$ with any state$ent and infor$ation re'atin& to the affairs of the 'icensee or
&eneratin& co$any< as the case $ay be< as the said Investi&atin& Authority $ay re=uire of
hi$ within such ti$e as the said Investi&atin& Authority $ay secify.
4. Any Investi&atin& Authority< directed to $a4e an investi&ation under sub!section :1;< or
insection under sub!section :2;< $ay eAa$ine on oath any $ana&er< $ana&in& director or
other officer of the 'icensee or &eneratin& co$any< as the case $ay be< in re'ation to his
business and $ay ad$inister oaths accordin&'y.
5. 1he Investi&atin& Authority< sha''< if it has been directed by the Aroriate 7o$$ission to
cause an insection to be $ade< and $ay< in any other case< reort to the Aroriate
7o$$ission on any insection $ade under this section.
". 9n receit of any reort under sub!section :1; or sub!section :5;< the Aroriate
7o$$ission $ay< after &ivin& such oortunity to the 'icensee or &eneratin& co$any< as the
case $ay be< to $a4e a reresentation in connection with the reort as in the oinion of the
Aroriate 7o$$ission< see$s reasonab'e< by order in writin&W
a. re=uire the 'icensee or the &eneratin& co$any to ta4e such action in resect of any
$atter arisin& out of the reort as the Aroriate 7o$$ission $ay thin4 fitJ or
b. cance' the 'iceneceJ or
c. direct the &eneratin& co$any to cease to carry on the business of &eneration of
e'ectricity.
1.*
). 1he Aroriate 7o$$ission $ay< after &ivin& reasonab'e notice to the 'icensee or the
&eneratin& co$any< as the case $ay be< ub'ish the reort sub$itted by the Investi&atin&
Authority under sub!section :5; or such ortion thereof as $ay aear to it to be necessary.
*. 1he Aroriate 7o$$ission $ay secify the $ini$u$ infor$ation to be $aintained by the
'icensee or the &eneratin& co$any in their boo4s< the $anner in which such infor$ation
sha'' be $aintained< the chec4s and other verifications to be adoted by 'icensee or the
&eneratin& co$any in that connection and a'' other $atters incidenta' thereto as are< in its
oinion< necessary to enab'e the Investi&atin& Authority to dischar&e satisfactori'y its
functions under this section.
E>planation#3 8or the uroses of this section< the eAression P 'icensee or the &eneratin&
co$anyQ sha'' inc'ude in the case of a 'icensee incororated in IndiaW
a. a'' its subsidiaries for$ed for the urose of carryin& on the business of &eneration or
trans$ission or distribution or tradin& of e'ectricity eAc'usive'y outside IndiaJ and
b. a'' its branches whether situated in India or outside India.
,. A'' eAenses of< and incidenta' to< any investi&ation $ade under this section sha'' be
defrayed by the 'icensee or &eneratin& co$any< as the case $ay be< and sha'' have riority
over that debts due fro$ the 'icensee or the &eneratin& co$any and sha'' be recoverab'e as
an arrear of 'and revenue.
"rders 8or sec/ring compliance
%(A#
1. 3here the Aroriate 7o$$ission< on the basis of $ateria' in its ossession< is satisfied
that a 'icensee is contravenin&< or is 'i4e'y to contravene< any of the conditions $entioned in
his 'icence or conditions for &rant of eAe$tion or the 'icensee or the &eneratin& co$any
has contravened or is 'i4e'y to contravene any of the rovisions of this Act< it sha''< by an
order< &ive such directions as $ay be necessary for the urose of securin& co$'iance with
that condition or rovision.
2. 3hi'e &ivin& direction under sub!section :1;< the Aroriate 7o$$ission sha'' have due
re&ard to the eAtent to which any erson is 'i4e'y to sustain 'oss or da$a&e due to such
contravention.
Proced/re 8or iss/ing directions 7y Appropriate Commission#
%)&#
1he Aroriate 7o$$ission< before issuin& any direction under section 12,< sha''!!
a. serve notice in the $anner as $ay be secified to the concerned 'icensee or &eneratin&
co$anyJ
1.,
b. ub'ish the notice in the $anner as $ay be secified for the urose of brin&in& the $atters
to the attention of ersons< 'i4e'y to be affected<or affectedJ
c. 7onsider su&&estions and ob>ections fro$ the concerned 'icensee or &eneratin& co$any and
the ersons< 'i4e'y to be affected< or affected.

11.
PA+T X%%%
+eorganisation "8 oard
.esting o8 property o8 oard in State 2overnment#
%)%#
1. 3ith effect fro$ the date on which a transfer sche$e< reared by the State -overn$ent to
&ive effect to the ob>ects and uroses of this Act< is ub'ished or such further date as $ay be
stiu'ated by the State -overn$ent :hereafter in this Part referred to as the effective date;<
any roerty< interest in roerty< ri&hts and 'iabi'ities which i$$ediate'y before the
effective date be'on&ed to the State +'ectricity Board :hereafter referred to as the Board;
sha'' vest in the State -overn$ent on such ter$s as $ay be a&reed between the State
-overn$ent and the Board.
2. Any roerty< interest in roerty< ri&hts and 'iabi'ities vested in the State -overn$ent under
sub!section :1; sha'' be re!vested by the State -overn$ent in a -overn$ent co$any or in a
co$any or co$anies< in accordance with the transfer sche$e so ub'ished a'on& with such
other roerty< interest in roerty< ri&hts and 'iabi'ities of the State -overn$ent as $ay be
stiu'ated in such sche$e< on such ter$s and conditions as $ay be a&reed between the State
-overn$ent and such co$any or co$anies bein& State 1rans$ission ?ti'ity or &eneratin&
co$any or trans$ission 'icensee or distribution 'icensee< as the case $ay be C Provided that
the transfer va'ue of any assets transferred hereunder sha'' be deter$ined< as far as $ay be<
based on the revenue otentia' of such assets at such ter$s and conditions as $ay be a&reed
between the State -overn$ent and the State 1rans$ission ?ti'ity or &eneratin& co$any or
trans$ission 'icensee or distribution 'icensee< as the case $ay be.
3. Notwithstandin& anythin& contained in this section< where<!
a. the transfer sche$e invo'ves the transfer of any roerty or ri&hts to any erson or
underta4in& not who''y owned by the State -overn$ent< the sche$e sha'' &ive effect
to the transfer on'y for fair va'ue to be aid by the transferee to the State
-overn$entJ
b. a transaction of any descrition is effected in ursuance of a transfer sche$e< it sha''
be bindin& on a'' ersons inc'udin& third arties and even if such ersons or third
arties have not consented to it.
4. 1he State -overn$ent $ay< after consu'tin& the -overn$ent co$any or co$any or
co$anies bein& State 1rans$ission ?ti'ity or &eneratin& co$any or trans$ission 'icensee
or distribution 'icensee< referred to in sub!section :2; :hereinafter referred to as the
transferor;< re=uire such transferor to draw u a transfer sche$e to vest in a transferee bein&
111
any other &eneratin& co$any or trans$ission 'icensee or distribution 'icensee< the roerty<
interest in roerty< ri&hts and 'iabi'ities which have been vested in the transferor under this
section< and ub'ish such sche$e as statutory transfer sche$e under this Act.
5. A transfer sche$e under this section $ay!
a. rovide for the for$ation of subsidiaries< >oint venture co$anies or other sche$es of
division< a$a'&a$ation< $er&er< reconstruction or arran&e$ents which sha'' ro$ote
the rofitabi'ity and viabi'ity of the resu'tin& entity< ensure econo$ic efficiency<
encoura&e co$etition and rotect consu$er interestsJ
b. define the roerty< interest in roerty< ri&hts and 'iabi'ities to be a''ocated !
i. by secifyin& or describin& the roerty< ri&hts and 'iabi'ities in =uestionJ or
ii. by referrin& to a'' the roerty< interest in roerty< ri&hts and 'iabi'ities
co$rised in a described art of the transferorDs underta4in&J or
iii. art'y in one way and art'y in the otherJ
c. rovide that any ri&hts or 'iabi'ities stiu'ated or described in the sche$e sha'' be
enforceab'e by or a&ainst the transferor or the transfereeJ
d. i$ose on the transferor an ob'i&ation to enter into such written a&ree$ents with or
eAecute such other instru$ents in favour of any other subse=uent transferee as $ay
be stiu'ated in the sche$eJ
e. $ention the functions and duties of the transfereeJ
f. $a4e such su'e$enta'< incidenta' and conse=uentia' rovisions as the transferor
considers aroriate inc'udin& rovision stiu'atin& the order as ta4in& effectJ and
&. rovide that the transfer sha'' be rovisiona' for a stiu'ated eriod.
". A'' debts and ob'i&ations incurred< a'' contracts entered into and a'' $atters and thin&s
en&a&ed to be done by the Board< with the Board or for the Board< or the State 1rans$ission
?ti'ity or &eneratin& co$any or trans$ission 'icensee or distribution 'icensee< before a
transfer sche$e beco$es effective sha''< to the eAtent secified in the re'evant transfer
sche$e< be dee$ed to have been incurred< entered into or done by the Board< with the Board
or for the State -overn$ent or the transferee and a'' suits or other 'e&a' roceedin&s
instituted by or a&ainst the Board or transferor< as the case $ay be< $ay be continued or
instituted by or a&ainst the State -overn$ent or concerned transferee< as the case $ay be.
112
). 1he Board sha'' cease to be char&ed with and sha'' not erfor$ the functions and duties with
re&ard to transfers $ade on and after the effective date. +A'anation.! 8or the urose of this
Part< !
a. R-overn$ent co$anyR $eans a -overn$ent 7o$any for$ed and re&istered under
the 7o$anies Act< 1,5".
% o8 %AB'
b. Rco$anyR $eans a co$any to be for$ed and re&istered under the 7o$anies Act<
1,5" to underta4e &eneration or trans$ission or distribution in accordance with the
sche$e under this Part. 1 of 1,5" 1 of 1,5"
,se o8 proceeds o8 sale or trans8er o8 t5e oard etc#
%)(#
In the event that a Board or any uti'ity owned or contro''ed by the Aroriate -overn$ent is so'd
or transferred in any $anner to a erson who is not owned or contro''ed by the Aroriate
-overn$ent< the roceeds fro$ such sa'e or transfer sha'' be uti'ised in riority to a'' other dues in
the fo''owin& order< na$e'y C!
a. dues :inc'udin& retire$ent benefits due; to the officers and e$'oyees of such Board or
uti'ity< who have been affected by the aforesaid sa'e or transferJ
b. ay$ent of debt or other 'iabi'ities of the transferor as $ay be re=uired by the eAistin& 'oan
covenants.
Provisions relating to o88icers and employees#
%))#
1. 1he State -overn$ent $ay< by a transfer sche$e< rovide for the transfer of the officers and
e$'oyees to the transferee on the vestin& of roerties< ri&hts and 'iabi'ities in such
transferee as rovided under section 131.
2. ?on such transfer under the transfer sche$e< the ersonne' sha'' ho'd office or service
under the transferee on such ter$s and conditions as $ay be deter$ined in accordance with
the transfer sche$eC Provided that such ter$s and conditions on the transfer sha'' not in any
way be 'ess favourab'e than those which wou'd have been a'icab'e to the$ if there had
been no such transfer under the transfer sche$eC
Provided further that the transfer can be rovisiona' for a stiu'ated eriod.
E>planation6 ! 8or the uroses of this section and the transfer sche$e< the eAression
Rofficers and e$'oyeesR sha'' $ean a'' officers and e$'oyees who on the date secified in
the sche$e are the officers and e$'oyees of the Board or transferor< as the case $ay be.
113
Payment o8 compensation or damages on trans8er#
%)4#
Notwithstandin& anythin& contained in the Industria' 2isutes Act< 1,4) or any other 'aw for the
ti$e bein& in force and eAcet for the rovisions $ade in this Act< the transfer of the e$'oy$ent of
the officers and e$'oyees referred to in sub!section :1; of section 133 sha'' not entit'e such officers
and e$'oyees to any co$ensation or da$a&es under this Act< or any other 7entra' or State 'aw<
save as rovided in the transfer sche$e. %4 o8 %A4E

114
PA+T XI.
"88ences And Penalties
T5e8t o8 Electricity#
%)B#
1. 3hoever< dishonest'y< !!
a. tas< $a4es or causes to be $ade any connection with overhead< under&round or
under water 'ines or cab'es< or service wires< or service faci'ities of a 'icenseeJ or
b. ta$ers a $eter< insta''s or uses a ta$ered $eter< current reversin& transfor$er< 'oo
connection or any other device or $ethod which interferes with accurate or roer
re&istration< ca'ibration or $eterin& of e'ectric current or otherwise resu'ts in a
$anner whereby e'ectricity is sto'en or wastedJ or
c. da$a&es or destroys an e'ectric $eter< aaratus< e=ui$ent< or wire or causes or
a''ows any of the$ to be so da$a&ed or destroyed as to interfere with the roer or
accurate $eterin& of e'ectricity< so as to abstract or consu$e or use e'ectricity sha'' be
unishab'e with i$rison$ent for a ter$ which $ay eAtend to three years or with
fine or with bothC Provided that in a case where the 'oad abstracted< consu$ed< or
used or atte$ted abstraction or atte$ted consu$tion or atte$ted use !
i. does not eAceed 1. 4i'owatt< the fine i$osed on first conviction sha'' not be
'ess than three ti$es the financia' &ain on account of such theft of e'ectricity
and in the event of second or subse=uent conviction the fine i$osed sha'' not
be 'ess than siA ti$es the financia' &ain on account of such theft of e'ectricityJ
( o8 %AE4
ii. eAceeds 1. 4i'owatt< the fine i$osed on first conviction sha'' not be 'ess than
three ti$es the financia' &ain on account of such theft of e'ectricity and in the
event of second or subse=uent conviction< the sentence sha'' be i$rison$ent
for a ter$ not 'ess than siA $onths but which $ay eAtend to five years and
with fine not 'ess than siA ti$es the financia' &ain on account of such theft of
e'ectricityC Provided further that if it is roved that any artificia' $eans or
$eans not authoriEed by the Board or 'icensee eAist for the abstraction<
consu$tion or use of e'ectricity by the consu$er< it sha'' be resu$ed< unti'
the contrary is roved< that any abstraction< consu$tion or use of e'ectricity
has been dishonest'y caused by such consu$er.
2. Any officer authoriEed in this beha'f by the State -overn$ent $ay ! !
115
a. enter< insect< brea4 oen and search any 'ace or re$ises in which he has reason to
be'ieve that e'ectricity has been< is bein&< or is 'i4e'y to be< used unauthorised'yJ
b. search< seiEe and re$ove a'' such devices< instru$ents< wires and any other faci'itator
or artic'e which has been< is bein&< or is 'i4e'y to be< used for unauthoriEed use of
e'ectricityJ
c. eAa$ine or seiEe any boo4s of account or docu$ents which in his oinion sha'' be
usefu' for or re'evant to< any roceedin&s in resect of the offence under sub!section
:1; and a''ow the erson fro$ whose custody such boo4s of account or docu$ents are
seiEed to $a4e coies thereof or ta4e eAtracts therefro$ in his resence.
3. 1he occuant of the 'ace of search or any erson on his beha'f sha'' re$ain resent durin&
the search and a 'ist of a'' thin&s seiEed in the course of such search sha'' be reared and
de'ivered to such occuant or erson who sha'' si&n the 'istC Provided that no insection<
search and seiEure of any do$estic 'aces or do$estic re$ises sha'' be carried out between
sunset and sunrise eAcet in the resence of an adu't $a'e $e$ber occuyin& such re$ises.
( o8 %AE4
4. 1he rovisions of the 7ode of 7ri$ina' Procedure< 1,)3< re'atin& to search and seiEure sha''
a'y< as far as $ay be< to searches and seiEure under this Act.
T5e8t o8 electric lines and materials#
%)'#
1. 3hoever< dishonest'y !!
a. cuts or re$oves or ta4es way or transfers any e'ectric 'ine< $ateria' or $eter fro$ a
tower< o'e< any other insta''ation or 'ace of insta''ation or any other 'ace< or site
where it $ay be ri&htfu''y or 'awfu''y stored< deosited< 4et< stoc4ed< situated or
'ocated inc'udin& durin& transortation< without the consent of the 'icensee or the
owner< as the case $ay be< whether or not the act is done for rofit or &ainJ or
b. stores< ossesses or otherwise 4ees in his re$ises< custody or contro'< any e'ectric
'ine< $ateria' or $eter without the consent of the owner< whether or not the act is
co$$itted for rofit or &ainJ or
c. 'oads< carries< or $oves fro$ one 'ace to another any e'ectric 'ine< $ateria' or $eter
without the consent of its owner< whether or not the act is done for rofit or &ain<done
for rofit or &ain< is said to have co$$itted an offence of theft of e'ectric 'ines and
$ateria's< and sha'' be unishab'e with i$rison$ent for a ter$ which $ay eAtend to
three years or with fine or with both.
11"
2. If a erson< havin& been convicted of an offence unishab'e under sub!section :1; is a&ain
&ui'ty of an offence unishab'e under that subsection< he sha'' be unishab'e for the second
or subse=uent offence for a ter$ of i$rison$ent which sha'' not be 'ess than siA $onths but
which $ay eAtend to five years and sha'' a'so be 'iab'e to fine which sha'' not be 'ess than
ten thousand ruees.
P/nis5ment 8or receiving stolen property
%)E#
3hoever< dishonest'y receives any sto'en e'ectric 'ines or $ateria's 4nowin& or havin& reasons to
be'ieve the sa$e to be sto'en roerty< sha'' be unishab'e with i$rison$ent of either descrition
for a ter$ which $ay eAtend to three years or with fine or with both.
Inter8erence :it5 meters or :or9s o8 licensee#
%)C#
1. :1; 3hoever< !
a. unauthorised'y connects any $eter< indicator or aaratus with any e'ectric 'ine
throu&h which e'ectricity is su'ied by a 'icensee or disconnects the sa$e fro$ any
such e'ectric 'ineJ or
b. unauthorised'y reconnects any $eter< indicator or aaratus with any e'ectric 'ine or
other wor4s bein& the roerty of a 'icensee when the said e'ectric 'ine or other wor4s
has or have been cut or disconnectedJ or
c. 'ays or causes to be 'aid< or connects u any wor4s for the urose of co$$unicatin&
with any other wor4s be'on&in& to a 'icenseeJ or
d. $a'icious'y in>ures any $eter< indicator< or aaratus be'on&in& to a 'icensee or
wi''fu''y or fraudu'ent'y a'ters the indeA of any such $eter< indicator or aaratus or
revents any such $eter< indicator or aaratus fro$ du'y re&isterin&< sha'' be
unishab'e with i$rison$ent for a ter$ which $ay eAtend to three years< or with
fine which $ay eAtend to ten thousand ruees< or with both< and < in the case of a
continuin& offence< with a dai'y fine which $ay eAtend to five hundred rueesJ and if
it is roved that any $eans eAist for $a4in& such connection as is referred to in
c'ause :a; or such re!connection as is referred to in c'ause :b;< or such co$$unication
as is referred to in c'ause :c;< for causin& such a'teration or revention as is referred
to in c'ause :d;< and that the $eter< indicator or aaratus is under the custody or
contro' of the consu$er< whether it is his roerty or not< it sha'' be resu$ed< unti'
the contrary is roved< that such connection< reconnection< co$$unication< a'teration<
revention or i$roer use< as the case $ay be< has been 4nowin&'y and wi''fu''y
caused by such consu$er.
11)
Negligently :asting electricity or in=/ring :or9s#
%)A#
3hoever< ne&'i&ent'y causes e'ectricity to be wasted or diverted or ne&'i&ent'y brea4s< in>ures<
throws down or da$a&es any $ateria' connected with the su'y of e'ectricity< sha'' be unishab'e
with fine which $ay eAtend to ten thousand ruees.
Penalty 8or malicio/sly :asting electricity or in=/ring :or9s#
%4&#
3hoever< $a'icious'y causes e'ectricity to be wasted or diverted< or < with intent to cut off the
su'y of e'ectricity< cuts or in>ures< or atte$ts to cut or in>ure< any e'ectric su'y 'ine or wor4s<
sha'' be unishab'e with fine which $ay eAtend to ten thousand ruees.
E>ting/is5ing p/7lic lamps#
%4%#
3hoever< $a'icious'y eAtin&uishes any ub'ic 'a$ sha'' be unishab'e with fine which $ay be
eAtend to two thousand ruees.
P/nis5ment 8or non3compliance o8 directions 7y Appropriate Commission#
%4(#
In case any co$'aint is fi'ed before the Aroriate 7o$$ission by any erson or if that
7o$$ission is satisfied that any erson has contravened any rovisions of this Act or ru'es or
re&u'ations $ade thereunder< or any direction issued by the 7o$$ission< the Aroriate
7o$$ission $ay after &ivin& such erson an oortunity of bein& heard in the $atter< by order in
writin&< direct that< without re>udice to any other ena'ty to which he $ay be 'iab'e under this Act<
such erson sha'' ay< by way of ena'ty< which sha'' not eAceed one 'a4h ruees for each
contravention and in case of a continuin& fai'ure with an additiona' ena'ty which $ay eAtend to siA
thousand ruees for every day durin& which the fai'ure continues after contravention of the first such
direction.
Po:er to ad=/dicate#
%4)#
1. 8or the urose of ad>ud&in& under this Act< the Aroriate 7o$$ission sha'' aoint any
of its Me$bers to be an ad>udicatin& officer for ho'din& an in=uiry in such $anner as $ay be
rescribed by the Aroriate -overn$ent <after &ivin& any erson concerned a reasonab'e
oortunity of bein& heard for the urose of i$osin& any ena'ty.
2. 3hi'e ho'din& an in=uiry< the ad>udicatin& officer sha'' have ower to su$$on and enforce
the attendance of any erson ac=uainted with the facts and circu$stances of the case to &ive
evidence or roduce any docu$ent which in the oinion of the ad>udicatin& officer< $ay be
usefu' for or re'evant to the sub>ect!$atter of the in=uiry< and if< on such in=uiry< he is
satisfied that the erson has fai'ed to co$'y with the rovisions of section 2, or section 33
11*
or section 43< he $ay i$ose such ena'ty as he thin4s fit in accordance with the rovisions
of any of those sections.
Factors to 7e ta9en into acco/nt 7y ad=/dicating o88icer#
%44#
3hi'e ad>udicatin& the =uantu$ of ena'ty under section 2, or section 33 or section 43< the
ad>udicatin& officer sha'' have due re&ard to the fo''owin& factors< na$e'yC!
a. the a$ount of disroortionate &ain or unfair advanta&e< wherever =uantifiab'e< $ade as a
resu't of the defau'tJ
b. the reetitive nature of the defau't.
Civil co/rt not to 5ave =/risdiction
%4B#
No civi' court sha'' have >urisdiction to entertain any suit or roceedin& in resect of any $atter
which an assessin& officer referred to in section 12" or an ae''ate authority referred to in section
12) or the ad>udicatin& officer aointed under this Act is e$owered by or under this Act to
deter$ine and no in>unction sha'' be &ranted by any court or other authority in resect of any action
ta4en or to be ta4en in ursuance of any ower conferred by or under this Act.
P/nis5ment 8or non3compliance o8 orders or directions#
%4'#
3hoever< fai's to co$'y with any order or direction &iven under this Act< within such ti$e as $ay
be secified in the said order or direction or contravenes or atte$ts or abets the contravention of
any of the rovisions of this Act or any ru'es or re&u'ations $ade thereunder< sha'' be unishab'e
with i$rison$ent for a ter$ which $ay eAtend to three $onths or with fine< which $ay eAtend to
one 'a4h ruees< or with both in resect of each offence and in the case of a continuin& fai'ure< with
an additiona' fine which $ay eAtend to five thousand ruees for every day durin& which the fai'ure
continues after conviction of the first such offence.
Penalties not to a88ect ot5er lia7ilities#
%4E#
1he ena'ties i$osed under this Act sha'' be in addition to< and not in dero&ation of< any 'iabi'ity in
resect of ay$ent of co$ensation or< in the case of a 'icensee< the revocation of his 'icence which
the offender $ay have incurred.
Penalty :5ere :or9s 7elong to 2overnment#
%4C#
1he rovisions of this Act sha''< so far as they are a'icab'e< be dee$ed to a'y a'so when the acts
$ade unishab'e thereunder are co$$itted in the case of e'ectricity su'ied by or of wor4s
be'on&in& to the Aroriate -overn$ent.
11,
"88ences 7y companies#
%4A#
1. 3here an offence under this Act has been co$$itted by a co$any< every erson who at the
ti$e the offence was co$$itted was in char&e of and was resonsib'e to the co$any for the
conduct of the business of the co$any< as we'' as the co$any sha'' be dee$ed to be &ui'ty
of havin& co$$itted the offence and sha'' be 'iab'e to be roceeded a&ainst and unished
accordin&'yC Provided that nothin& contained in this sub!section sha'' render any such erson
'iab'e to any unish$ent if he roves that the offence was co$$itted without his 4now'ed&e
or that he had eAercised a'' due di'i&ence to revent the co$$ission of such offence.
2. Notwithstandin& anythin& contained in sub!section :1;< where an offence under this Act has
been co$$itted by a co$any and it is roved that the offence has been co$$itted with the
consent or connivance of or is attributab'e to any ne&'ect on the art of any director<
$ana&er< secretary or other officer of the co$any< such director< $ana&er< secretary or other
officer sha'' a'so be dee$ed to be &ui'ty of havin& co$$itted such offence and sha'' be 'iab'e
to be roceeded a&ainst and unished accordin&'y.
E>planation# ! 8or the urose of this section<!
a. Rco$anyR $eans a body cororate and inc'udes a fir$ or other association of
individua'sJ and
b. RdirectorR< in re'ation to a fir$< $eans a artner in the fir$.
A7atement#
%B&#
4B o8 %C'&#
1. 3hoever abets an offence unishab'e under this Act< sha''< notwithstandin& anythin&
contained in the Indian Pena' 7ode< be unished with the unish$ent rovided for the
offence.
2. 3ithout re>udice to any ena'ty or fine which $ay be i$osed or rosecution roceedin&
which $ay be initiated under Act or any other 'aw for the ti$e bein& in force< if any officer
or other e$'oyee of the Board or the 'icensee enters intro or ac=uiesces in any a&ree$ent to
do< abstains fro$ doin&< er$its< concea's or connives at any act or thin& whereby any theft
of e'ectricity is co$$itted< he sha'' be unishab'e with i$rison$ent for a ter$ which $ay
eAtend to three years< or with fine< or with both.
CogniHance o8 o88ences#
%B%#
No court sha'' ta4e co&niEance of an offence unishab'e under this Act eAcet uon a co$'aint in
writin& $ade by Aroriate -overn$ent or Aroriate 7o$$ission or any of their officer
authoriEed by the$ or a 7hief +'ectrica' Insector or an +'ectrica' Insector or 'icensee or the
&eneratin& co$any< as the case $ay be< for this urose.
12.
Compo/nding o8 o88ences#
%B(#
( o8 %AE4#
1. Notwithstandin& anythin& contained in the 7ode of 7ri$ina' Procedure 1,)3< the
Aroriate -overn$ent or any officer authoriEed by it in this beha'f $ay accet fro$ any
consu$er or erson who co$$itted or who is reasonab'y susected of havin& co$$itted an
offence of theft of e'ectricity unishab'e under this Act< a su$ of $oney by way of
co$oundin& of the offence as secified in the 1ab'e be'owC
TA!E
Nature of Service
#ate at which the su$ of $oney for
7o$oundin& to be co''ected er
Ii'owatt:I3;(Gorse Power:GP; or art
thereof for 0ow 1ension :01; su'y and
er Ii'o /o't A$ere:I/A; of contracted
de$and for Gi&h 1ension :G1;
1 2
1. Industria' Service
2. 7o$$ercia' Service
3. A&ricu'tura' Service
4. 9ther Services
twenty thousand rueesJ
ten thousand rueesJ
two thousand rueesJ
four thousand rueesC
2. Provided that the Aroriate -overn$ent $ay< by notification in the 9fficia' -aEette<
a$end the rates secified in the 1ab'e above.
3. 9n ay$ent of the su$ of $oney in accordance with sub!section :1;< any erson in custody
in connection with that offence sha'' be set at 'iberty and no roceedin&s sha'' be instituted or
continued a&ainst such consu$er or erson in any cri$ina' court.
4. 1he accetance of the su$ of $oney for co$oundin& an offence in accordance with sub!
section :1; by the Aroriate -overn$ent or an officer authorised in this beha'f e$owered
in this beha'f sha'' be dee$ed to a$ount to an ac=uitta' within the $eanin& of section 3.. of
the 7ode of 7ri$ina' Procedure< 1,)3.
5. 1he 7o$oundin& of an offence under sub!section :1; sha'' be a''owed on'y once for any
erson or consu$er.

121
PA+T X.
Special Co/rts
Constit/tion o8 Special Co/rts#
%B)#
1. 1he State -overn$ent $ay< for the uroses of rovidin& seedy tria' of offences referred to
in sections 135 to 13,< by notification in the 9fficia' -aEette< constitute as $any Secia'
7ourts as $ay be necessary for such area or areas< as $ay be secified in the notification.
2. A Secia' 7ourt sha'' consist of a sin&'e Fud&e who sha'' be aointed by the State
-overn$ent with the concurrence of the Gi&h 7ourt.
3. A erson sha'' not be =ua'ified for aoint$ent as a Fud&e of a Secia' 7ourt un'ess he was<
i$$ediate'y before such aoint$ent< an Additiona' 2istrict and Sessions Fud&e.
4. 3here the office of the Fud&e of a Secia' 7ourt is vacant< or such Fud&e is absent fro$ the
ordinary 'ace of sittin& of such Secia' 7ourt< or he is incaacitated by i''ness or otherwise
for the erfor$ance of his duties< any ur&ent business in the Secia' 7ourt sha'' be disosed
of 6
a. by a Fud&e< if any< eAercisin& >urisdiction in the Secia' 7ourtJ
b. where there is no such other Fud&e avai'ab'e< in accordance with the direction of
2istrict and Sessions Fud&e havin& >urisdiction over the ordinary 'ace of sittin& of
Secia' 7ourt< as notified under sub! section:1;.
Proced/re and po:er o8 Special Co/rt#
%B4#
1. otwithstandin& anythin& contained in the 7ode of 7ri$ina' Procedure< 1,)3< every offence
unishab'e under sections 135 to 13, sha'' be triab'e on'y by the Secia' 7ourt within whose
>urisdiction such offence has been co$$itted.
2. 3here it aears to any court in the course of any in=uiry or tria' that an offence unishab'e
under sections 135 to 13, in resect of any offence that the case is one which is triab'e by a
Secia' 7ourt constituted under this Act for the area in which such case has arisen< it sha''
transfer such case to such Secia' 7ourt< and thereuon such case sha'' be tried and disosed
of by such Secia' 7ourt in accordance with the rovisions of this Act C Provided that it sha''
be 'awfu' for such Secia' 7ourt to act on the evidence< if any< recorded by any court in the
case of resence of the accused before the transfer of the case to any Secia' 7ourt C
Provided further that if such Secia' 7ourt is of oinion that further eAa$ination< cross!
eAa$ination and re!eAa$ination of any of the witnesses whose evidence has a'ready been
122
recorded< is re=uired in the interest of >ustice< it $ay resu$$on any such witness and after
such further eAa$ination< cross!eAa$ination or re!eAa$ination< if any< as it $ay er$it< the
witness sha'' be dischar&ed.
3. 1he Secia' 7ourt $ay< notwithstandin& anythin& contained in subsection :1; of section 2".
or section 2"2 of the 7ode of 7ri$ina' Procedure< 1,)3< try the offence referred to in
sections 135 to 13, in a su$$ary way in accordance with the rocedure rescribed in the
said 7ode and the rovisions of sections 2"3 to 2"5 of the said 7ode sha''< so far as $ay be<
a'y to such tria' C Provided that where in the course of a su$$ary tria' under this
subsection< it aears to the Secia' 7ourt that the nature of the case is such that it is
undesirab'e to try such case in su$$ary way< the Secia' 7ourt sha'' reca'' any witness who
$ay have been eAa$ined and roceed to re!hear the case in the $anner rovided by the
rovisions of the said 7ode for the tria' of such offenceC Provided further that in the case of
any conviction in a su$$ary tria' under this section< it sha'' be 'awfu' for a Secia' 7ourt to
ass a sentence of i$rison$ent for a ter$ not eAceedin& five years.
4. A Secia' 7ourt $ay< with a view to obtainin& the evidence of any erson suosed to have
been direct'y or indirect'y concerned in or rivy to< any offence tender ardon to such erson
on condition of his $a4in& a fu'' and true disc'osure of the circu$stances within his
4now'ed&e re'atin& to the offence and to every other erson concerned whether as rincia'
or abettor in the co$$ission thereof< and any ardon so tendered sha'' < for the uroses of
section 3.* of the 7ode of 7ri$ina' Procedure<1,)3< be dee$ed to have been tendered under
section 3.) thereof.
5. 1he Secia' 7ourt $ay deter$ine the civi' 'iabi'ity a&ainst a consu$er or a erson in ter$s
of $oney for theft of ener&y which sha'' not be 'ess than an a$ount e=uiva'ent to two ti$es
of the tariff rate a'icab'e for a eriod of twe've $onths recedin& the date of detection of
theft of ener&y or the eAact eriod of theft if deter$ined which ever is 'ess and the a$ount of
civi' 'iabi'ity so deter$ined sha'' be recovered as if it were a decree of civi' court.
". In case the civi' 'iabi'ity so deter$ined fina''y by the Secia' 7ourt is 'ess than the a$ount
deosited by the consu$er or the erson< the eAcess a$ount so deosited by the consu$er or
the erson< to the Board or 'icensee or the concerned erson< as the case $ay be< sha'' be
refunded by the Board or 'icensee or the concerned erson< as the case $ay be< within a
fortni&ht fro$ the date of co$$unication of the order of the Secia' 7ourt to&ether with
interest at the revai'in& #eserve Ban4 of India ri$e 'endin& rate for the eriod fro$ the
date of such deosit ti'' the date of ay$ent. 2 of 1,)4
E>planation
. ! 8or the uroses of this section< P civi' 'iabi'ityQ $eans 'oss or da$a&e incurred by the Board or
123
'icensee or the concerned erson< as the case $ay be< due to the co$$ission of an offence referred
to in sections 135 to 13,. ( o8 %AE4.
%BB#
Save as otherwise rovided in this Act< the 7ode of 7ri$ina' Procedure< 1,)3< in so far as they are
not inconsistent with the rovisions of this Act< sha'' a'y to the roceedin&s before the Secia'
7ourt and for the urose of the rovisions of the said enact$ents< the Secia' 7ourt sha'' be
dee$ed to be a 7ourt of Session and sha'' have a'' owers of a 7ourt of Session and the erson
conductin& a rosecution before the Secia' 7ourt sha'' be dee$ed to be a Pub'ic Prosecutor.
Special Co/rt to 5ave po:ers o8 co/rt o8 session ( o8 %AE4#
%B'#
1he Gi&h 7ourt $ay eAercise< so far as $ay be a'icab'e< a'' the owers conferred by 7haters
55I5 and 555 of the 7ode of 7ri$ina' Procedure< 1,)3< as if the Secia' 7ourt within the 'oca'
'i$its of the >urisdiction of the Gi&h 7ourt is a 2istrict 7ourt< or as the case $ay be < the 7ourt of
Session < tryin& cases within the 'oca' 'i$its of >urisdiction of the Gi&h 7ourt. Appeal and revision#
%BE#
1he Secia' 7ourt $ay < on a etition or otherwise and in order to revent $iscarria&e of >ustice<
review its >ud&$ent or order assed under section 154< but no such review etition sha'' be
entertained eAcet on the &round that it was such order assed under a $ista4e of fact< i&norance of
any $ateria' fact or any error aarent on the face of the record C Provided that the Secia' 7ourt
sha'' not a''ow any review etition and set aside its revious order or >ud&$ent without hearin& the
arties affected. +A'anation.! 8or the urose of this Part< RSecia' 7ourtsR $eans the Secia'
7ourts constituted under sub!section :1; of section 153.
+evie:#

124
PA+T X.I
Disp/te +esol/tion
#rbitration
Ar7itration#
%BC#
3here any $atter is< by or under this Act< directed to be deter$ined by arbitration< the $atter sha''<
un'ess it is otherwise eAress'y rovided in the 'icence of a 'icensee< be deter$ined by such erson
or ersons as the Aroriate 7o$$ission $ay no$inate in that beha'f on the a'ication of either
artyJ but in a'' other resects the arbitration sha'' be sub>ect to the rovisions of the Arbitration and
7onci'iation Act< 1,,".
2" of 1,,".

125
PA+T X.II
"TDE+ P+".ISI"N
Protective clauses
Protection o8 rail:ays; 5ig5:ays; airports and canals; doc9s; :5ar8s and piers#
%BA#
No erson sha''< in the &eneration< trans$ission< distribution< su'y or use of e'ectricity< in any way
in>ure any rai'way< hi&hway< airorts< tra$way< cana' or water!way or any doc4< wharf or ier vested
in or contro''ed by a 'oca' authority< or obstruct or interfere with the traffic on any rai'way< airway<
tra$way< cana' or water!way.
Protection o8 telegrap5ic; telep5onic and electric signalling lines#
%'&#
1. +very erson &eneratin&< trans$ittin&< distributin&< su'yin& or usin& e'ectricity :hereinafter
in this section referred to as the RoeratorR; sha'' ta4e a'' reasonab'e recautions in
constructin&< 'ayin& down and 'acin& his e'ectric 'ines< e'ectrica' 'ant and other wor4s and
in wor4in& his syste$< so as not 'ines< e'ectrica' 'ant and other wor4s and in wor4in& his
syste$< so as not in>urious'y to affect< whether by induction or otherwise< the wor4in& of any
wire or 'ine used for the urose of te'e&rahic< te'ehone or e'ectric si&na''in&
co$$unication< or the currents in such wire or 'ine.
2. 3here any difference or disute arises between the oerator< and the te'e&rah authority as to
whether the oerator has constructed< 'aid down or 'aced his e'ectric 'ines< e'ectrica' 'ant or
other wor4s< or wor4ed his syste$< in contravention of sub!section :1;< or as to whether the
wor4in& of any wire< 'ine or current is or is not in>urious'y affected thereby< the $atter sha''
be referred to the 7entra' -overn$ent and the 7entra' -overn$ent< un'ess it is of oinion
that the wire or 'ine has been 'aced in unreasonab'e roAi$ity to the e'ectric 'ines< e'ectrica'
'ant or wor4s of the oerator after the construction of such 'ines< 'ant or wor4s< $ay direct
the oerator to $a4e such a'terations in< or additions to< his syste$ as $ay be necessary in
order to co$'y with the rovisions of this section< and the oerator sha'' $a4e such
a'terations or additions accordin&'yC Provided that nothin& in this sub!section sha'' a'y to
the reair< renewa' or a$end$ent of any e'ectric 'ine or e'ectrica' 'ant so 'on& as the course
of the e'ectric 'ine or e'ectrica' 'ant and the a$ount and nature of the e'ectricity trans$itted
thereby are not a'tered.
3. 3here the oerator $a4es defau't in co$'yin& with the re=uire$ents of this section< he
sha'' $a4e fu'' co$ensation for any 'oss or da$a&e incurred by reason thereof< and< where
any difference or disute arises as to the a$ount of such co$ensation< the $atter sha'' be
deter$ined by arbitration.
12"
E>planation#
8or the uroses of this section< a te'e&rah 'ine sha'' be dee$ed to be in>urious'y affected if
te'e&rahic< te'ehonic or e'ectric si&na''in& co$$unication by $eans of such 'ine is<
whether throu&h induction or otherwise< re>udicia''y interfered with by an e'ectric 'ine <
e'ectrica' 'ant or other wor4 or by any use $ade thereof.
Notice o8 accidents and in@/iries#
%'%#
1. If any accident occurs in connection with the &eneration< trans$ission< distribution< su'y or
use of e'ectricity in or in connection with< any art of the e'ectric 'ines or e'ectrica' 'ant of
any erson and the accident resu'ts or is 'i4e'y to have resu'ted in 'oss of hu$an or ani$a'
'ife or in any in>ury to a hu$an bein& or an ani$a'< such erson sha'' &ive notice of the
occurrence and of any such 'oss or in>ury actua''y caused by the accident< in such for$ and
within such ti$e as $ay be rescribed< to the +'ectrica' Insector or such other erson as
aforesaid and to such other authorities as the Aroriate -overn$ent $ay by &enera' or
secia' order< direct.
2. 1he Aroriate -overn$ent $ay< if it thin4s fit< re=uire any +'ectrica' Insector< or any
other erson aointed by it in this beha'f< to in=uire and reort!
a. as to the cause of any accident affectin& the safety of the ub'ic< which $ay have
been occasioned by or in connection with< the &eneration< trans$ission< distribution<
su'y or use of e'ectricity< or
b. as to the $anner in< and eAtent to< which the rovisions of this Act or ru'es and
re&u'ations $ade thereunder or of any 'icence< so far as those rovisions affect the
safety of any erson< have been co$'ied with.
3. +very +'ectrica' Insector or other erson ho'din& an in=uiry under sub!section :2; sha'' have
a'' the owers of a civi' court under the 7ode of 7ivi' Procedure< 1,.* for the urose of
enforcin& the attendance of witnesses and co$e''in& the roduction of docu$ents and
$ateria' ob>ects< and every erson re=uired by an +'ectrica' Insector be 'e&a''y bound to do
so within the $eanin& of section 1)" of the Indian Pena' 7ode.
Appointment o8 C5ie8 Electrical Inspector and Electrical Inspector#
%'(#
1. 1he Aroriate -overn$ent $ay< by notification< aoint du'y =ua'ified ersons to be
7hief +'ectrica' Insector or +'ectrica' Insectors and every such Insector so aointed
sha'' eAercise the owers and erfor$ the functions of a 7hief +'ectrica' Insector or an
+'ectrica' Insector under this Act and eAercise such other owers and erfor$ such other
functions as $ay be rescribed within such areas or in resect of such c'ass of wor4s and
12)
e'ectric insta''ations and sub>ect to such restrictions as the Aroriate -overn$ent $ay
direct.
2. In the absence of eAress rovision to the contrary in this Act< or any ru'e $ade thereunder<
an aea' sha'' 'ie fro$ the decision of a 7hief +'ectrica' Insector or an +'ectrica' Insector
to the Aroriate -overn$ent or if the Aroriate -overn$ent< by &enera' or secia' order
so directs< to an Aroriate 7o$$ission.
Po:er 8or licensee to enter premises and to remove 8ittings or ot5er apparat/s o8 licensee#
%')#
1. A 'icensee or any erson du'y authorised by a 'icence $ay< at any reasonab'e ti$e< and on
infor$in& the occuier of his intention< enter any re$ises to which e'ectricity is< or has
been< su'ied by hi$< of any re$ises or 'and< under< over< a'on&< across< in or uon which
the e'ectric su'y!'ines or other wor4s have been 'awfu''y 'aced by hi$ for the urose of
6
a. insectin&< testin&< reairin& or a'terin& the e'ectric su'y 'ines< $eters< fittin&s<
wor4s and aaratus for the su'y of e'ectricity be'on&in& to the 'icenseeJ or
b. ascertainin& the a$ount of e'ectricity su'ied or the e'ectrica' =uantity contained in
the su'yJ or
c. re$ovin& where a su'y of e'ectricity is no 'on&er re=uired< or where the 'icensee is
authorised to ta4e away and cut off such su'y< any e'ectric su'y!'ines< $eters<
fittin&s< wor4s or aaratus be'on&in& to the 'icensee.
2. A 'icensee or any erson authorised as aforesaid $ay a'so< in ursuance of a secia' order in
this beha'f $ade by an +Aecutive Ma&istrate and after &ivin& not 'ess than twenty!four hours
notice in writin& to the occuier< !
a. enter any re$ises or 'and referred to in sub!section :1; for any of the uroses
$entioned thereinJ
b. enter any re$ises to which e'ectricity is to be su'ied by hi$< for the urose of
eAa$inin& and testin& the e'ectric wires fittin&s< wor4s and aaratus for the use of
e'ectricity be'on&in& to the consu$er.
3. 3here a consu$er refuses to a''ow a 'icensee or any erson authorised as aforesaid to enter
his re$ises or 'and in ursuance of the rovisions of sub!section :1; or< sub!section :2;<
when such 'icensee or erson has so entered< refuses to a''ow hi$ to erfor$ any act which
he is authorised by those subsections to erfor$< or fai's to &ive reasonab'e faci'ities for such
entry or erfor$ance< the 'icensee $ay< after the eAiry of twenty!four hours fro$ the
12*
service of a notice in writin& on the consu$er< cut off the su'y to the consu$er for so 'on&
as such refusa' or fai'ure continues< but for no 'on&er.
E>ercise o8 po:ers o8 Telegrap5 A/t5ority in certain cases#
%'4#
1he Aroriate -overn$ent $ay< by order in writin&< for the 'acin& of e'ectric 'ines or e'ectrica'
'ant for the trans$ission of e'ectricity or for the urose of te'ehonic or te'e&rahic
co$$unications necessary for the roer co!ordination of wor4s< confer uon any ub'ic officer<
'icensee or any other erson en&a&ed in the business of su'yin& e'ectricity under this Act< sub>ect
to such conditions and restrictions< if any< as the Aroriate -overn$ent $ay thin4 fit to i$ose
and to the rovisions of the Indian 1e'e&rah Act< 1**5< any of the owers which the te'e&rah
authority ossesses under that Act with resect to the 'acin& of te'e&rah authority ossesses under
that Act with resect to the 'acin& of te'e&rah 'ines and osts for the uroses of a te'e&rah
estab'ished or $aintained< by the -overn$ent or to be so estab'ished or $aintained.
Amendment o8 Sections 4& and 4% o8 Act % o8 %CA4#
%'B#
1. In section 4.< sub!section :1; of c'ause :b; and section 41< subsection :5; of the 0and
Ac=uisition Act< 1*,4< the ter$ Rwor4R sha'' be dee$ed to inc'ude e'ectricity su'ied or to
be su'ied by $eans of the wor4 to be constructed.
2. 1he Aroriate -overn$ent $ay< on reco$$endation of the Aroriate 7o$$ission in
this beha'f< if it thin4s fit< on the a'ication of any erson< not bein& a co$any desirous of
obtainin& any 'and for its uroses< direct that he $ay ac=uire such 'and under the rovisions
of the 0and Ac=uisition Act< 1*,4 in the sa$e $anner and on the sa$e conditions as it $i&ht
be ac=uired if the erson were a co$any.

12,
PA+T3 X.III
0ISCE!!ANE",S
Coordination For/m
%''#
1. 1he 7entra' -overn$ent sha'' constitute a 7oordination 8oru$ consistin& of the 7hairerson
of the 7entra' 7o$$ission and Me$bers thereof< the 7hairerson of the Authority<
reresentatives of &eneratin& co$anies and trans$ission 'icensees en&a&ed in inter!State
trans$ission of e'ectricity for s$ooth and coordinated deve'o$ent of the ower syste$ in
the country.
2. 1he 7entra' -overn$ent sha'' a'so constitute a foru$ of re&u'ators consistin& of the
7hairerson of the 7entra' 7o$$ission and 7hairersons of the State 7o$$issions.
3. 1he 7hairerson of the 7entra' 7o$$ission sha'' be the 7hairerson of the 8oru$ of
re&u'ators referred to in sub!section :2;.
4. 1he State -overn$ent sha'' constitute a 7oordination 8oru$ consistin& of the 7hairerson
of the State 7o$$ission and Me$bers thereof reresentatives of the &eneratin& co$anies<
trans$ission 'icensee and distribution 'icensees en&a&ed in &eneration< trans$ission and
distribution of e'ectricity in that State for s$ooth and coordinated deve'o$ent of the ower
syste$ in the State.
5. 1here sha'' be a co$$ittee in each district to be constituted by the Aroriate -overn$ent !
a. to coordinate and review the eAtension of e'ectrification in each districtJ
b. to review the =ua'ity of ower su'y and consu$er satisfactionJ
c. to ro$ote ener&y efficiency and its conservation.
E>emption o8 electric lines or electrical plants 8rom attac5ment in certain cases#
%'E#
3here any e'ectric 'ines or e'ectrica' 'ant< be'on&in& to a 'icensee are 'aced in or uon any
re$ises or 'and not bein& in the ossession of the 'icensee< such e'ectric 'ines or e'ectrica' 'ant
sha'' not be 'iab'e to be ta4en in eAecution under any rocess of any civi' court or in any roceedin&s
in inso'vency a&ainst the erson in whose ossession the sa$e $ay be.
Protection o8 action ta9en in good 8ait5#
%'C#
No suit< rosecution or other roceedin& sha'' 'ie a&ainst the Aroriate -overn$ent or Ae''ate
1ribuna' or the Aroriate 7o$$ission or any officer of Aroriate -overn$ent< or any Me$ber<
9fficer or other e$'oyees of the Ae''ate 1ribuna' or any Me$bers< officer or other e$'oyees of
13.
the Aroriate 7o$$ission or the assessin& officer or any ub'ic servant for anythin& done or in
&ood faith urortin& to be done under this Act or the ru'es or re&u'ations $ade thereunder.
0em7ers; o88icers; etc#; o8 Appellate Tri7/nal; Appropriate Commission to 7e p/7lic servants
4B o8 %C'&#
%'A#
1he 7hairerson< Me$bers< officers and other e$'oyees of the Ae''ate 1ribuna' and the
7hairerson< Me$bers< Secretary< officers and other e$'oyees of the Aroriate 7o$$ission and
the assessin& officer referred to in section 12" sha'' be dee$ed< when actin& or urortin& to act in
ursuance of any of the rovisions of this Act to be ub'ic servants within the $eanin& of section 21
of the Indian Pena' 7ode.
+ecovery o8 penalty paya7le /nder Act#
%E&#
Any ena'ty ayab'e by a erson under this Act< if not aid< $ay be recovered as if it were an arrear
of 'and revenue.
Service o8 notices; orders or doc/ments
%E%#
1. +very notice< order or docu$ent by or under this Act re=uired< or authorised to be addressed
to any erson $ay be served on hi$ by de'iverin& the sa$e after obtainin& si&ned
ac4now'ed&e$ent receit therefor or by re&istered ost or such $eans of de'ivery as $ay be
rescribed !
a. where the Aroriate -overn$ent is the addressee< at the office of such officer as
the Aroriate -overn$ent $ay rescribe in this beha'fJ
b. where the Aroriate 7o$$ission is the addressee< at the office of the Aroriate
7o$$issionJ
c. where a co$any is the addressee< at the re&istered office of the co$any or< in the
event of the re&istered office of the co$any not bein& in India< at the head office of
the co$any in IndiaJ
d. where any other erson is the addressee< at the usua' or 'ast 4nown 'ace of abode or
business of the erson.
2. +very notice< order or docu$ent by or under this Act re=uired or authorised to be addressed
to the owner or occuier of any re$ises sha'' be dee$ed to be roer'y addressed if
addressed by the descrition of the owner or occuier of the re$ises :na$in& the re$ises;<
and $ay be served by de'iverin& it< or a true coy thereof< to so$e erson on the re$ises< or
if there is no erson on the re$ises to who$ the sa$e can with reasonab'e di'i&ence be
de'ivered< by affiAin& it on so$e consicuous art of the re$ises.
131
Transitional provisions#
%E%#
Notwithstandin& anythin& to the contrary contained in this Act<!
a. a State +'ectricity Board constituted under the reea'ed 'aws sha'' be dee$ed to be the State
1rans$ission ?ti'ity and a 'icensee under the rovisions of this Act for a eriod of one year
fro$ the aointed date or such ear'ier date as the State -overn$ent $ay notify< and sha''
erfor$ the duties and functions of the State 1rans$ission ?ti'ity and a 'icensee in
accordance with the rovisions of this Act and ru'es and re&u'ations $ade thereunderC
Provided that the State -overn$ent $ay< by notification< authorise the State +'ectricity
Board to continue to function as the State 1rans$ission ?ti'ity or a 'icensee for such further
eriod beyond the said eriod of one year as $ay be $utua''y decided by the 7entra'
-overn$ent and the State -overn$ent.
b. a'' 'icences< authorisations arova's< c'earances and er$issions &ranted under the
rovisions of the reea'ed 'aws $ay< for a eriod not eAceedin& one year fro$ the aointed
date or such ear'ier eriodJ as $ay be notified by the Aroriate -overn$ent< continue to
oerate as if the reea'ed 'aws were in force with resect to such 'icence< authorisations<
arova's< c'earances and er$issions< as the case $ay be< and thereafter such
'icences<c'earances and er$issions< as the case $ay be< and thereafter such 'icences<
authorisations< arova's< c'earances and er$issions sha'' be dee$ed to be 'icences<
authorisation< arova's< c'earances and er$ission under this Act and a'' rovisions of this
Act sha'' a'y accordin&'y to such 'icences authorisations arova's< c'earances and
er$issions.
c. the underta4in& of the State +'ectricity Boards estab'ished under section 5 of the +'ectricity
:Su'y; Act< 1,4* $ay after the eAiry of the eriod secified in c'ause :a; be transferred in
accordance with the rovisions of Part 5III of this ActJ
d. the State -overn$ent $ay< by notification< dec'are that any or a'' the rovisions contained in
this Act< sha'' not a'y in that State for such eriod< not eAceedin& siA $onths fro$ the
aointed date< as $ay be stiu'ated in the notification.
Inconsistency in la:s
%E)#
Nothin& contained in this Act or any ru'e or re&u'ation $ade thereunder or any instru$ent havin&
effect by virtue of this Act< ru'e or re&u'ation sha'' have effect in so far as it is inconsistent with any
other rovisions of the 7onsu$er Protection Act< 1,*" or the Ato$ic +ner&y Act< 1,"2 or the
#ai'ways Act< 1,*,.
132
Act to 5ave overriding e88ect#
%E4#
Save as otherwise rovided in section 1)3< the rovisions of this Act sha'' have effect
notwithstandin& anythin& inconsistent therewith contained in any other 'aw for the ti$e bein& in
force or in any instru$ent havin& effect by virtue of any 'aw other than this Act.
Provisions o8 t5is Act to 7e in addition to and not in derogation o8 ot5er la:s# Po:er o8 Central
2overnment to ma9e r/les#
%EB#
1he rovisions of this Act are in addition to and not in dero&ation of any other 'aw for the ti$e bein&
in force.
%E'#
1. 1he 7entra' -overn$ent $ay< by notification< $a4e ru'es for carryin& out the rovisions of
this Act.
2. In articu'ar and without re>udice to the &enera'ity of the fore&oin& ower< such ru'es $ay
rovide for a'' or any of the fo''owin& $atters< na$e'yC !
a. the ti$e within which the ob>ection and su&&estions on the draft Nationa' +'ectricity
P'an to be invited by the Authority under the roviso to sub!section :4; of section 3J
b. the additiona' re=uire$ents :inc'udin& the caita' ade=uacy< creditworthiness or code
of conduct; under siAth roviso to section 14J
c. the ay$ent of fees for a'ication for &rant of 'icence under sub!section :I; of
section 15J
d. the constitution and functions of the Nationa' 0oad 2esatch 7entre under sub!
section :2; of section 2"J
e. the wor4s of 'icensees affectin& the roerty of owner or occuier under sub!section
:2; of section ")J
f. such other wor4s which $ay be rescribed under c'ause :c; of sub!section :2; of
Section "*J
&. a''owances and fees ayab'e to others Me$bers for attendin& the $eetin&s of
Authority under sub!section :14; of section )..
h. other ter$s and conditions of service of the 7hairerson and Me$bers of the
Authority under sub!section :15; of section ).J
133
i. the functions and duties of the 7entra' +'ectricity Authority under section )3J
>. the sa'ary< a''owances and other conditions of service of 7hairerson and Me$ber of
7entra' 7o$$ission under sub!section :2; of section *,J
4. the for$ and $anner in which and the authority before who$ oath of office and
secrecy shou'd be subscribed under sub!section :3; of section *,J
'. the rocedure to be rescribed by the 7entra' 7o$$ission under the roviso to sub!
section :2; of section ,.J
$. any other $atter re=uired to be rescribed under c'ause :&; of sub!section :1; of
section ,4J
n. the for$ in which the 7entra' 7o$$ission sha'' reare its annua' state$ents of
accounts under sub!section :1; of section 1..J
o. the for$ in which and ti$e at which the 7entra' 7o$$ission sha'' reare its annua'
reort under sub!section :1; 1.1J
. the for$ in which and ti$e at which the 7entra' 7o$$ission sha'' reare its bud&et
under section 1."J
=. the for$ and the $anner of verifyin& such for$< and fee for fi'in& aea' under sub!
section :2; of section 111J
r. the sa'ary and a''owances ayab'e to and the other ter$s and conditions of service of
the 7hairerson of the Ae''ate 1ribuna' and Me$bers of the Ae''ate 1ribuna'
under section 115J
s. the sa'ary and a''owances and other conditions of service of the officers and
e$'oyees of the Ae''ate 1ribuna' under sub!section :3; of section 11,J
t. the additiona' $atters in resect of which the Ae''ate 1ribuna' $ay eAercise the
owers of a civi' court under c'ause :i; of sub!section :2; of section 12.J
u. the authority to who$ the aea' sha'' be fi'ed under sub!section :1; of section 12)J
v. $anner of ho'din& in=uiry by an ad>udicatin& officer and subsection :1; of section
143J
w. the for$ in which and the ti$e at which service of notices to any erson or to the
7entra' -overn$ent for the urose under sub!section :1; of section 1"1J
134
A. the owers to be eAercised and the functions to be erfor$ed by the Insectors under
sub!section :1; of section 1"2J
y. the $anner of de'ivery of every notice< order or docu$ent to be served under sub!
section :1; of section 1)1J
E. any other $atter which is re=uired to be< or $ay be< rescribed.
Po:ers o8 A/t5ority to ma9e reg/lations#
%EE#
1. 1he Authority $ay< by notification< $a4e re&u'ations consistent with this Act and the ru'es
&enera''y to carry out the rovisions of this Act.
2. In articu'ar and without re>udice to the &enera'ity of the ower conferred in sub!section
:1;< such re&u'ations $ay rovide for a'' or any of the fo''owin& $atters< na$e'yC!!
a. the -rid Standards under section 34J
b. suitab'e $easures re'atin& to safety and e'ectric su'y under section 53J
c. the insta''ation and oeration of $eters under section 55J
d. the ru'es of rocedure for transaction of business under sub!section :,; of section ).J
e. the technica' standards for construction of e'ectrica' 'ants and e'ectric 'ines and
connectivity to the &rid under c'ause :b; of section )3J
f. the for$ and $anner in which and the ti$e at which the State -overn$ent and
'icensees sha'' furnish statistics< returns or other infor$ation under section )4.
&. any other $atter which is to be< or $ay be< secifiedJ
3. A'' re&u'ations $ade by the Authority under this Act sha'' be sub>ect to the conditions of
revious ub'ication.
Po:ers o8 Central Commission to ma9e reg/lations#
%EC#
1. 1he 7entra' 7o$$ission $ay< by notification $a4e re&u'ations consistent with this Act and
the ru'es &enera''y to carry out the rovisions of this Act.
2. In articu'ar and without re>udice to the &enera'ity of the ower contained in sub!section
:1;< such re&u'ations $ay rovide for a'' or any of fo''owin& $atters< na$e'yC!
a. eriod to be secified under the first roviso to section 14J
b. the for$ and the $anner of the a'ication under sub!section :1; of section 15J
135
c. the $anner and articu'ars of notice under sub!section :2; of section 15J
d. the conditions of 'icence under section 1"J
e. the $anner and articu'ars of notice under c'ause :a; of sub!section :2; of section 1*J
f. ub'ication of a'terations or a$end$ents to be $ade in the 'icence under c'ause:c; of
sub!section :2; of section 1*J
&. -rid 7ode under sub!section :2; of section 2*J
h. 'evy and co''ection of fees and char&e fro$ &eneratin& co$anies or trans$ission
uti'ities or 'icensees under sub!section :4; of section 2*J
i. rates< char&es and ter$s and conditions in resect of intervenin& trans$ission
faci'ities under roviso to section 3"J
>. ay$ent of the trans$ission char&es and a surchar&e under!sub!c'ause :ii; of c'ause
:d; of sub!section :2; of section 3*J
4. reduction and e'i$ination of surchar&e and cross subsidies under second roviso to
sub!c'ause :ii; of c'ause :d; of sub!section :2; of section 3*J
'. ay$ent of trans$ission char&es and a surchar&e under sub!c'ause :ii; of c'ause:c; of
section 4.J
$. reduction and e'i$ination of surchar&e and cross subsidies under the second roviso
to sub!c'ause :ii; of c'ause :c; of section 4.J
n. roortion of revenues fro$ other business to be uti'ised for reducin& the
trans$ission and whee'in& char&es under roviso to section 41J
o. duties of e'ectricity trader under sub!section :2; of section 52J
. standards of erfor$ance of a 'icensee or c'ass of 'icensees under sub!section :1; of
section 5)J
=. the eriod within which infor$ation to be furnished by the 'icensee under sub!section
:1; of section 5,J
r. the eriod within which the cross!subsidies sha'' be reduced and e'i$inated under
c'ause :&; of section "1J
s. the ter$s and conditions for the deter$ination of tariff under section "1J
13"
t. detai's to be furnished by 'icensee or &eneratin& co$any under sub!section :2; of
section "2J
u. the rocedures for ca'cu'atin& the eAected revenue fro$ tariff and char&es under
sub!section :5; of section "2J
v. the $anner of $a4in& an a'ication before the 7entra' 7o$$ission and the fee
ayab'e therefor under sub!section :1; of section "4J
w. the $anner of ub'ication of draft tariff order under sub!section :3; of section "4J
A. issue of tariff order with $odifications or conditions under subsection :4; of section
"4J
y. the $anner by which deve'o$ent of $ar4et in ower inc'udin& tradin& secified
under section ""J
E. the owers and duties of the Secretary of the 7entra' 7o$$ission under sub!section
:1; of section ,1J
aa. the ter$s and conditions of service of the Secretary< officers and other e$'oyees of
7entra' 7o$$ission under sub!section :3; of section ,1J
bb. the ru'es of rocedure for transaction of business under subsection :1; of section ,2J
cc. $ini$u$ infor$ation to be $aintained by a 'icensee or the &eneratin& co$any and
the $anner of such infor$ation to be $aintained under sub!section :*; of section
12*J :Ed; the $anner of service and ub'ication of notice under section 13.J
dd. any other $atter which is to be< or $ay be< secified by re&u'ations.
3. A'' re&u'ations $ade by the 7entra' 7o$$ission under this Act sha'' be sub>ect to the
conditions of revious ub'ication.
+/les and reg/lations to 7e laid 7e8ore Parliament#
%EA#
+very ru'e $ade by the 7entra' -overn$ent< every re&u'ation $ade by the Authority< and every
re&u'ation $ade by the 7entra' 7o$$ission sha'' be 'aid< as soon as $ay be after it is $ade< before
each Gouse of the Par'ia$ent< whi'e it is in session< for a tota' eriod of thirty days which $ay be
co$rised in one session or in two or $ore successive sessions< and if< before the eAiry of the
session i$$ediate'y fo''owin& the session or the successive sessions aforesaid< both Gouses a&ree in
$a4in& any $odification in the ru'e or re&u'ation or a&ree that the ru'e or re&u'ation shou'd not be
13)
$ade< the ru'e or re&u'ation sha'' thereafter have effect on'y in such $odified for$ or be of no
effect< as the case $ay beJ so< however< that any such $odification or annu'$ent sha'' be without
re>udice to the va'idity of anythin& revious'y done under that ru'e or re&u'ation. .
Po:ers o8 State 2overnments to ma9e r/les
%C&#
1. 1he State -overn$ent $ay< by notification< $a4e ru'es for carryin& out the rovisions of this
Act.
2. In articu'ar and without re>udice to the &enera'ity of fore&oin& ower< such ru'es $ay
rovide for a'' or any of the fo''owin& $atters< na$e'yC ! .
a. the ay$ent of fees for a'ication for &rant of 'icence under subsection :1; of
section 15J
b. the wor4s of 'icensees affectin& the roerty of other ersons under sub! section:2; of
section ")J
c. such other $atters which $ay be rescribed under c'ause :c; of subsection :2; of
section "*J
d. the sa'ary< a''owances and other ter$s and conditions of service of the 7hairerson
and Me$bers of the State 7o$$ission under sub!section :2; of section *,J
e. the for$ and $anner in which and the authority before who$ oath of office and
secrecy shou'd be subscribed under sub!section :3; of section *,J
f. any other $atter re=uired to be rescribed by the State 7o$$ission under c'ause :&;
of sub! section :1; of section ,4J
&. the $anner of a'yin& the 8und under sub!section :3; of section 1.3J
h. the for$ in which and ti$e at which the State 7o$$ission sha'' reare its annua'
accounts under sub!section :1; of section 1.4J
i. the for$ in which and ti$e at which the State 7o$$ission sha'' reare its annua'
reort under sub!section :1; of section 1.5J
>. the for$ in which and ti$e at which the State 7o$$ission sha'' reare its bud&et
under section 1."J
4. $anner of service of rovisiona' order of assess$ent under subsection :2; of section
12"J
13*
'. $anner of ho'din& in=uiry by an ad>udicatin& officer under subsection :1; of section
143J
$. the for$ in which and the ti$e at which notice to the +'ectrica' Insector under sub!
section :1; of section 1"1J
n. the $anner of de'ivery of every notice< order or docu$ent under sub!section :1; of
section 1)1J and
o. any other $atter which is re=uired to be< or $ay be< rescribed.
Po:ers o8 State Commissions to ma9e reg/lations#
%C%#
1. 1he State 7o$$issions $ay< by notification< $a4e re&u'ations consistent with this Act and
the ru'es &enera''y to carry out the rovisions of this Act.
2. In articu'ar and without re>udice to the &enera'ity of the ower contained in sub!section
:1;< such re&u'ations $ay rovide for a'' or any of the fo''owin& $atters< na$e'yC !
a. eriod to be secified under the first roviso of section 14J
b. the for$ and the $anner of a'ication under sub!section :1; of section 15J
c. the $anner and articu'ars of a'ication for 'icence to be ub'ished under sub!
section :2; of section 15J
d. the conditions of 'icence section 1"J
e. the $anner and articu'ars of notice under c'ause:a; of subsection :2; of section 1*J
f. ub'ication of the a'terations or a$end$ents to be $ade in the 'icence under c'ause
:c; of sub!section :2; of section 1*J
&. 'evy and co''ection of fees and char&es fro$ &eneratin& co$anies or 'icensees under
sub!section :3; of section 32J
h. rates< char&es and the ter$ and conditions in resect of intervenin& trans$ission
faci'ities under roviso to section 3"J
i. ay$ent of the trans$ission char&es and a surchar&e under subc'ause :ii; of c'ause:d;
of sub!section :2; of section 3,J
>. reduction and e'i$ination of surchar&e and cross subsidies under second roviso to
sub!c'ause :ii; of c'ause :d; of sub!section :2; of section 3,J
13,
4. $anner and uti'isation of ay$ent and surchar&e under the fourth roviso to sub!
c'ause:ii; of c'ause :d; of sub!section :2; of section 3,J
'. ay$ent of the trans$ission char&es and a surchar&e under subc'ause: ii; of c'ause
:c; of section 4.J
$. reduction and e'i$ination of surchar&e and cross subsidies under second roviso to
sub!c'ause :ii; of c'ause :c; of section 4.J
n. the $anner of ay$ent of surchar&e under the fourth roviso to sub!c'ause :ii; of
c'ause :c; of section 4.J
o. roortion of revenues fro$ other business to be uti'ised for reducin& the
trans$ission and whee'in& char&es under roviso to section 41J
. reduction and e'i$ination of surchar&e and cross!subsidies under the third roviso to
sub!section :2; of section 42J
=. ay$ent of additiona' char&es on char&es of whee'in& under subsection :4; of section
42J
r. &uide'ines under sub!section :5; of section 42J
s. the ti$e and $anner for sett'e$ent of &rievances under sub!section :); of section 42J
t. the eriod to be secified by the State 7o$$ission under sub!section :1; of section
43J
u. $ethods and rinci'es by which char&es for e'ectricity sha'' be fiAed under sub!
section :2; of section 45J
v. reasonab'e security ayab'e to the distribution 'icensee under sub!section :1; of
section 4)J
w. ay$ent of interest on security under sub!section :4; of section 4)J
A. e'ectricity su'y code under section 5.J
y. the roortion of revenues fro$ other business to be uti'ised for reducin& whee'in&
char&es under roviso to section 51J
E. duties of e'ectricity trader under sub!section :2; of section 52J
aa. standards of erfor$ance of a 'icensee or a c'ass of 'icensees under sub!section :1; of
section 5)J
14.
bb. the eriod within which infor$ation to be furnished by the 'icensee under sub!section
:1; of section 5,J
cc. the eriod within which the cross!subsidies sha'' be reduced and e'i$inated under
c'ause :&; of section "1J
dd. the ter$s and conditions for the deter$ination of tariff under section "1J
ee. detai's to be furnished by 'icensee or &eneratin& co$any under sub!section :2; of
section "2J
ff. the $ethodo'o&ies and rocedures for ca'cu'atin& the eAected revenue fro$ tariff
and char&es under sub!section :1; of section "2J
&&. the $anner of $a4in& an a'ication before the State 7o$$ission and the fee
ayab'e therefor under sub!section :1; of section "4J
hh. issue of tariff order with $odifications or conditions under subsection: 3; of section
"4J
ii. the $anner by the which deve'o$ent of $ar4et in ower inc'udin& tradin& secified
under section ""J
>>. the owers and duties of the Secretary of the State 7o$$ission under sub!section :1;
of section ,1J
44. the ter$s and conditions of service of the secretary< officers and other e$'oyees of
the State 7o$$ission under sub!section :2; of section ,1J
''. ru'es of rocedure for transaction of business under sub!section :1; of section ,2J
$$. $ini$u$ infor$ation to be $aintained by a 'icensee or the &eneratin&
co$any and the $anner of such infor$ation to be $aintained under sub!section :*;
of section 12*J
nn. the $anner of service and ub'ication of notice under section 13.J
oo. the for$ of and referrin& the aea' and $anner in which such for$ sha'' be verified
and the fee for referrin& the aea' under sub!section :1; of section 12)J
. any other $atter which is to be< or $ay be< secified.
3. A'' re&u'ations $ade by the State 7o$$ission under this Act sha'' be sub>ect to the
condition of revious ub'ication.
141
+/les and reg/lations to 7e laid 7e8ore State !egislat/re
%C(#
+very ru'e $ade by the State -overn$ent and every re&u'ation $ade by the State 7o$$ission sha''
be 'aid< as soon as $ay be after it is $ade< before each Gouse of the State 0e&is'ature where it
consists of two Gouses< or where such 0e&is'ature consists of one Gouse< before that Gouse.
Po:er to remove di88ic/lties#
%C)#
1. If any difficu'ty arises in &ivin& effect to the rovisions of this Act< the 7entra' -overn$ent
$ay< by order ub'ished< $a4e such rovisions not inconsistent with the rovisions of this
Act< as $ay aear to be necessary for re$ovin& the difficu'tyC Provided that no order sha''
be $ade under this section after the eAiry of two years fro$ the date of co$$ence$ent of
this Act.
2. +very order $ade under this section sha'' be 'aid< as soon as $ay be after it is $ade< before
each GouseD of Par'ia$ent.
Provisions o8 Act not to apply in certain cases#
%C4#
1he rovisions of this Act sha'' not a'y to the Ministry or 2eart$ent of the 7entra' -overn$ent
dea'in& with 2efence< Ato$ic +ner&y or such other si$i'ar Ministries or 2eart$ents or
underta4in&s or Boards or institutions under the contro' of such Ministries or 2eart$ents as $ay be
notified by the 7entra' -overn$ent.
+epeal and saving#
%CB#
1. Save as otherwise rovided in this Act< the Indian +'ectricity Act< 1,1.< the +'ectricity
:Su'y; Act< 1,4* and the +'ectricity #e&u'atory 7o$$issions Act< 1,,* are hereby
reea'ed.
2. Notwithstandin& such reea'< !
a. anythin& done or any action ta4en or urorted to have been done or ta4en inc'udin&
any ru'e< notification< insection< order or notice $ade or issued or any aoint$ent<
confir$ation or dec'aration $ade or any 'icence< er$ission< authorisation or
eAe$tion &ranted or any docu$ent or instru$ent eAecuted or any direction &iven
under the reea'ed 'aws sha''< in so far as it is not inconsistent with the rovisions of
this Act< be dee$ed to have been done or ta4en under the corresondin& rovisions of
this Act.
142
b. the rovisions contained in sections 12 to 1* of the Indian +'ectricity Act< 1,1. and
ru'es $ade thereunder sha'' have effect unti' the ru'es under section ") to ", of this
Act are $adeJ.
c. Indian +'ectricity #u'es< 1,5" $ade under section 3) of the Indian +'ectricity Act<
1,1. as it stood before such reea' sha'' continue to be in force ti'' the re&u'ations
under section 53 of this Act are $ade. force ti'' the re&u'ations under section 53 of
this Act are $ade.
d. a'' ru'es $ade under sub!section :1; of section ", of the +'ectricity :Su'y; Act<
1,4* sha'' continue to have effect unti' such ru'es are rescinded or $odified< as the
case $ay beJ
e. a'' directives issued< before the co$$ence$ent of this Act< by a State -overn$ent
under the enact$ents secified in the Schedu'e sha'' continue to a'y for the eriod
for which such directions were issued by the State -overn$ent.Q .
3. 1he rovisions of the enact$ents secified in the Schedu'e< not inconsistent with the
rovisions of this Act< sha'' a'y to the States in which such enact$ents are a'icab'e.
4. 1he 7entra' -overn$ent $ay< as and when considered necessary< by notification< a$end the
Schedu'e.
5. Save as otherwise rovided in sub!section :2;< the $ention of articu'ar $atters in that
section< sha'' not be he'd to re>udice or affect the &enera' a'ication of section " of the
-enera' 7'auses Act< 1*,)< with re&ard to the effect of reea's.

143
TDE SCDED,!E
ENACT0ENTS
$ See s/73Section $)* o8 Section %CB*
1. 1he 9rissa +'ectricity #efor$ Act< 1,,5 :9rissa Act no. 2 of 1,,";
2. 1he Garyana +'ectricity #efor$ Act< 1,,) :Garyana Act no. 1. of 1,,*;
3. 1he Andhra Pradesh +'ectricity #efor$ Act< 1,,* :Andhra Pradesh Act no. 3. of 1,,*;
4. 1he ?ttar Pradesh +'ectricity #efor$ Act< 1,,, :?ttar Pradesh Act no. 24 of 1,,,;
5. 1he Iarnata4a +'ectricity #efor$ Act< 1,,, :Iarnata4a Act no. 25 of 1,,,;
". 1he #a>asthan +'ectricity #efor$ Act< 1,,, :#a>asthan Act no. 23 of 1,,,;
). 1he 2e'hi +'ectricity #efor$s Act< 2... :2e'hi Act No.2 of 2..1;
*. 1he Madhya Pradesh /idyut Sudhar Adhiniya$< 2... :Madhya Pradesh Act No. 4 of 2..1;

144
T5e Electricity $Amendment* Act; (&&) dated )&
t5
Decem7er; (&&)
Copy o8 T5e 2aHette o8 India
EXT+A"+DINA+1
PA+T I 33 Section %
P,!ISDED 1 A,TD"+IT1
No E% Ne: Del5i; Dated Decem7er )%; (&&)
0INIST+1 IF FAW AND -,STICE
$!egislative Department*
Ne: Del5i; t5e )%
st
Decem7er; (&&)
1he fo''owin& Act of Par'ia$ent received the assent of the President on the 3.
th
2ece$ber< 2..3
and is hereby ub'ished for &enera' infor$ationC!!
1G+ +0+71#I7I1L :AM+N2M+N1; A71< 2..3
No. 5) 98 2..3
T 3.
th
2ece$ber< 2..3.U
An Act to a$end the +'ectricity Act< 2..3.
Be it enacted by Par'ia$ent in the 8ifty!fourth Lear of the #eub'ic of India as fo''owsC!!
1. : 1 ; 1his Act $ay be ca''ed the +'ectricity :A$end$ent; Act< 2..3.
: 2 ; It sha'' co$e into force on such date as the 7entra' -overn$ent $ay<
by notification in the 9fficia' -aEette< aoint.
2. In section 14 of the +'ectricity Act< 2..3 :hereinafter referred to as the rincia'
Act;< in the siAth roviso< for the brac4ets and words P:inc'udin& the caita'
ade=uacy< creditworthiness< or code of conduct;Q< the words Pre'atin& to the caita'
ade=uacy< creditworthiness< or code of conduct P sha'' be substituted.
3. In section 42 of the rincia' Act< in sub!section :23;< after the fourth roviso< the
fo''owin& roviso sha'' be inserted< na$e'y<C!!
P Provided a'so that the State 7o$$ission sha''< not 'ater than five years fro$ the dated
of co$$ence$ent of the +'ectricity :A$end$ent; Act< 2..3< by re&u'ations< rovide
such oen access to a'' consu$ers who re=uire a su'y of e'ectricity where the
$aAi$u$ ower to be $ade avai'ab'e at any ti$e eAceeds one $e&awatt.Q
145
4. 8or section 121 of the rincia' Act< the fo''owin& section sha'' be substituted<
na$e'yC!!

P121. 1he Ae''ate 1ribuna'< $ay < after hearin& the Aroriate 7o$$ission or
other interested arty< if any< fro$ ti$e to ti$e< issue such orders< instructions or
directions as it $ay dee fit< to any Aroriate 7o$$ission for the erfor$ance of
its statutory functions under this Act.Q.
5. In section 135 of the rincia' Act< in sub!section :2;< !!
:i; in c'ause :a;< for the words Phas been< is bein&< or is 'i4e'y to be< P < the words
Phas been or is bein& P sha'' be substituted.
:ii; in c'ause :b;< for the words< Phas been< is bein&< or is 'i4e'y to be< P < the
words Phas been or is bein& P sha'' be substituted.
". 8or sections 13, and 14. of the rincia' Act< the fo''owin& sections sha'' be
substituted< na$e'yC!!
P13,. 3hoever< ne&'i&ent'y brea4s< in>ures< throws down or da$a&es $any $ateria'
connected with the su'y of e'ectricity< sha'' be unishab'e with fine which $ay eAtend to
ten thousand ruees.
14.. 3hoever< with intent to cut off the su'y of e'ectricity< cuts or atte$ts to cut or
in>ure< any e'ectric su'y 'ine or wor4s< sha'' be unishab'e with fine which $ay eAtend to
ten thousand ruees.Q.
). In section 14" of the rincia' Act< the fo''owin& roviso sha'' be inserted< na$e'yC!!
PProvided that nothin& contained in this section sha'' a'y to the orders< instructions
or directions issued under section 121.Q
T#F# .ISWANATDAN;
ecy! to t"e Go#t! of $ndia!
14"
+evie: o8 policies S/percession o8 o/tdated circ/lars and g/idelines
No.3)(1.(2..4!G.II
-overn$ent of India
Ministry of Power
V
Shra$ Sha4ti Bhawan< #afi Mar&<
New 2e'hi< dated the May 25< 2..5
"FFICE 0E0"+AND,0
SubC #eview of o'icies in view of the rovisions of +'ectricity Act< 2..3.
V..
1he undersi&ned is directed to say that 4eein& in view that the rovisions $ade in the +'ectricity
Act< 2..3< the fo''owin& 29s ( 'etters $ay be treated as suercededC!
S'.No. No. ( 2ate Sub>ect Status
1 2.9."(1(1ariff(cative
ower(,5 dated
,.1..1,,5
Private ower
ro$otion throu&h
cative ower ( co!
&eneration route.
As er +'ectricity Act< 2..3< cative
&eneration has been free'y er$itted and
tariff settin& is to be done by #e&u'atory
7o$$issions. 1herefore< instructions
contained in this 'etter stand suerceded.
2 2.9.No.A!31(,4!IP7
dated ,.1.1,,)
Instructions re&ardin&
IPPs $eant eAc'usive'y
for the cative use of an
industry or a &rou of
industries without
invo'vin& any sa'e to
State -rid.
As cative &eneration has been free'y
a''owed by the new +'ectricity Act< the
instructions contained therein stand
suerceded. 1ariff fiAation for sa'e of
sur'us ower fro$ cative 'ants wi'' be
re&u'ated by #e&u'atory 7o$$issions.
3 2.9.No.A!*2(,)!
IP7.I dated
21.1..1,,,
7ative co!&eneration
ower 'ants.
As there is no re=uire$ent of concurrence
fro$ 7+A eAcet for hydro e'ectric 'ants<
the instructions contained therein stand
suerceded.
4 9.M.No.7!323(,5!
IP7.II dated
1,.1.1,,"
0ist of c'earance that
wi'' be re=uired by 7+A
for considerin& 1+7.
As &eneration has been de'icensed< the
instructions contained therein stand
suerceded. Gowever< 7+A wi'' be re=uired
to issue detai'ed instructions for hydro
ro>ects.
5 2.9.No.4(1(,"!IP7.II
dated 2*.".1,,"
2ead'ine for sub$ission
of 2P#s on the
M9?(09I< etc.< route
1hese instructions are no $ore re'evant now
and stand suerceded.
" 0etter No.A!5*(,5!
IP7 dated 15.1..1,,"
Per$ittin& Indian +P7
contract to bid in any
currency.
1he &uide'ines for transarent biddin&
rocess have been issued under Section "3
of the Act< the instructions contained in this
'etter stand suerceded.
) 2.9.No.2(5(,)!IP7.II
dated 1..1.1,,)
Po'icy re&ardin&
eAansion of ower
ro>ects in rivate
As &eneration has been de'icensed< the
instructions contained therein stand
suerceded.
14)
sector.
* 2.9.No.A!53(,5!
IP7.I dated 3.".1,,)
-uide'ines for invitin&
tariff based bids.
1he &uide'ines for tariff deter$ination
throu&h co$etitive biddin& have been
issued under Section "3 of the Act. 1hese
&uide'ines of 1,,) stand suerceded.
, 0etter No. A!*2(,)!
IP7.I dated 21.5.2..2
Po'icy for ro$otin&
ower 'ants by
refineries usin& refinery
residues.
As o'icy re&ardin& choice of fue' has been
'aid down in Nationa' +'ectricity Po'icy< this
o'icy of 2..2 stand suerceded.
Sd(!
:2ev 2utt;
?nder Secretary to the -ovt. of India
1e'e. No.23)1 55.)(+Atn.213< 34,
1o
i; A'' 7hief Secretaries< Power ( +ner&y Secretaries of State -overn$ents ( ?ti'ities
ii; 7hair$en of State +'ectricity Boards
iii; 7hairerson< 7+A.
14*
National Electricity Policy $%(#&(#(&&B*

T5e 2aHette o8 India
EXT+A"+DINA+1
PA+T I 3 Section %
P,!ISDED 1 A,TD"+IT1
NoI#; Ne: Del5i; Dated I#
0inistry o8 Po:er
New 2e'hi<
2ated the 12th< 8ebruary< 2..5
+ES"!,TI"N
No. 23(4.(2..4!#%# :/o'.II;
%#& INT+"D,CTI"N
1.1 In co$'iance with section 3 of the +'ectricity Act 2..3 the 7entra' -overn$ent hereby notifies
the Nationa' +'ectricity Po'icy.
1.2 +'ectricity is an essentia' re=uire$ent for a'' facets of our 'ife. It has been reco&niEed as a basic
hu$an need. It is a critica' infrastructure on which the socio!econo$ic deve'o$ent of the country
deends. Su'y of e'ectricity at reasonab'e rate to rura' India is essentia' for its overa''
deve'o$ent. +=ua''y i$ortant is avai'abi'ity of re'iab'e and =ua'ity ower at co$etitive rates to
Indian industry to $a4e it &'oba''y co$etitive and to enab'e it to eA'oit the tre$endous otentia' of
e$'oy$ent &eneration. Services sector has $ade si&nificant contribution to the &rowth of our
econo$y. Avai'abi'ity of =ua'ity su'y of e'ectricity is very crucia' to sustained &rowth of this
se&$ent.
1.3 #eco&niEin& that e'ectricity is one of the 4ey drivers for raid econo$ic &rowth and overty
a''eviation< the nation has set itse'f the tar&et of rovidin& access to a'' househo'ds in neAt five years.
As er 7ensus 2..1< about 44B of the househo'ds do not have access to e'ectricity. Gence $eetin&
the tar&et of rovidin& universa' access is a dauntin& tas4 re=uirin& si&nificant addition to &eneration
caacity and eAansion of the trans$ission and distribution networ4.
1.4 Indian Power sector is witnessin& $a>or chan&es. -rowth of Power Sector in India since its
Indeendence has been noteworthy. Gowever< the de$and for ower has been outstriin& the
&rowth of avai'abi'ity. Substantia' ea4 and ener&y shorta&es revai' in the country. 1his is due to
inade=uacies in &eneration< trans$ission % distribution as we'' as inefficient use of e'ectricity. /ery
hi&h 'eve' of technica' and co$$ercia' 'osses and 'ac4 of co$$ercia' aroach in $ana&e$ent of
14,
uti'ities has 'ed to unsustainab'e financia' oerations. 7ross!subsidies have risen to unsustainab'e
'eve's. Inade=uacies in distribution networ4s has been one of the $a>or reasons for oor =ua'ity of
su'y.
1.5 +'ectricity industry is caita'!intensive havin& 'on& &estation eriod. #esources of ower
&eneration are uneven'y disersed across the country. +'ectricity is a co$$odity that can not be
stored in the &rid where de$and and su'y have to be continuous'y ba'anced. 1he wide'y
distributed and raid'y increasin& de$and re=uire$ents of the country need to be $et in an oti$u$
$anner.
1." +'ectricity Act< 2..3 rovides an enab'in& fra$ewor4 for acce'erated and $ore efficient
deve'o$ent of the ower sector. 1he Act see4s to encoura&e co$etition with aroriate
re&u'atory intervention. 7o$etition is eAected to yie'd efficiency &ains and in turn resu't in
avai'abi'ity of =ua'ity su'y of e'ectricity to consu$ers at co$etitive rates.
1.) Section 3 :1; of the +'ectricity Act 2..3 re=uires the 7entra' -overn$ent to for$u'ate< inter a'ia<
the Nationa' +'ectricity Po'icy in consu'tation with 7entra' +'ectricity Authority :7+A; and State
-overn$ents. 1he rovision is =uoted be'owC
)*he Central &overnment shall$ rom time to time$ prepare the +ational ,lectricity Policy and tari
policy$ in consultation with the State &overnments and the #uthority or development o the power
system based on optimal utili-ation o resources such as coal$ natural gas$ nuclear substances or
materials$ hydro and renewable sources o energy).
Section 3 :3; of the Act enab'es the 7entra' -overn$ent to review or revise the Nationa' +'ectricity
Po'icy fro$ ti$e to
ti$e.
1.* 1he Nationa' +'ectricity Po'icy ai$s at 'ayin& &uide'ines for acce'erated deve'o$ent of the
ower sector< rovidin& su'y of e'ectricity to a'' areas and rotectin& interests of consu$ers and
other sta4eho'ders 4eein& in view avai'abi'ity of ener&y resources< techno'o&y avai'ab'e to eA'oit
these resources< econo$ics of &eneration usin& different resources< and ener&y security issues.
1., 1he Nationa' +'ectricity Po'icy has been evo'ved in consu'tation with and ta4in& into account
views of the State -overn$ents< 7entra' +'ectricity Authority :7+A;< 7entra' +'ectricity #e&u'atory
7o$$ission :7+#7; and other sta4eho'ders.
15.
(#& AI0S < "-ECTI.ES
1he Nationa' +'ectricity Po'icy ai$s at achievin& the fo''owin& ob>ectivesC
Access to +'ectricity ! Avai'ab'e for a'' househo'ds in neAt five years
Avai'abi'ity of Power ! 2e$and to be fu''y $et by 2.12. +ner&y and ea4in& shorta&es to be
overco$e and ade=uate sinnin& reserve to be avai'ab'e.
Su'y of #e'iab'e and Hua'ity Power of secified standards in an efficient $anner and at
reasonab'e rates.
Per caita avai'abi'ity of e'ectricity to be increased to over 1... units by 2.12.
Mini$u$ 'ife'ine consu$tion of 1 unit(househo'd(day as a $erit &ood by year 2.12.
8inancia' 1urnaround and 7o$$ercia' /iabi'ity of +'ectricity Sector.
Protection of consu$ersD interests.
)# NATI"NA! E!ECT+ICIT1 P!AN
3.1 Assess$ent of de$and is an i$ortant re!re=uisite for 'annin& caacity addition. Section 3 :4;
of the Act re=uires the 7entra' +'ectricity Authority :7+A; to fra$e a Nationa' +'ectricity P'an once
in five years and revise the sa$e fro$ ti$e to ti$e in accordance with the Nationa' +'ectricity
Po'icy. A'so< section )3 :a; rovides that for$u'ation of short!ter$ and ersective 'ans for
deve'o$ent of the e'ectricity syste$ and coordinatin& the activities of various 'annin& a&encies for
the oti$a' uti'iEation of resources to subserve the interests of the nationa' econo$y sha'' be one of
the functions of the 7+A. 1he P'an reared by 7+A and aroved by the 7entra' -overn$ent can
be used by rosective &eneratin& co$anies< trans$ission uti'ities and trans$ission(distribution
'icensees as reference docu$ent.
3.2 Accordin&'y< the 7+A sha'' reare short!ter$ and ersective 'an. 1he Nationa' +'ectricity
P'an wou'd be for a short!ter$ fra$ewor4 of five years whi'e &ivin& a 15 year ersective and
wou'd inc'udeC
Short!ter$ and 'on& ter$ de$and forecast for different re&ionsJ
Su&&ested areas('ocations for caacity additions in &eneration and trans$ission 4eein& in
view the econo$ics of &eneration and trans$ission< 'osses in the syste$< 'oad centre
re=uire$ents< &rid stabi'ity< security of su'y< =ua'ity of ower inc'udin& vo'ta&e rofi'e etc.
and environ$enta' considerations inc'udin& rehabi'itation and resett'e$entJ
151
Inte&ration of such ossib'e 'ocations with trans$ission syste$ and deve'o$ent of nationa'
&rid inc'udin& tye of trans$ission syste$s and re=uire$ent of redundanciesJ and
2ifferent techno'o&ies avai'ab'e for efficient &eneration< trans$ission and distribution.
8ue' choices based on econo$y< ener&y security and environ$enta' considerations.
3.3 3hi'e evo'vin& the Nationa' +'ectricity P'an< 7+A wi'' consu't a'' the sta4eho'ders inc'udin&
state &overn$ents and the state &overn$ents wou'd< at state 'eve'< underta4e this eAercise in
coordination with sta4eho'ders inc'udin& distribution 'icensees and S1?s. 3hi'e conductin& studies
eriodica''y to assess short!ter$ and 'on&!ter$ de$and< ro>ections $ade by distribution uti'ities
wou'd be &iven due wei&hta&e. 7+A wi'' a'so interact with institutions and a&encies havin&
econo$ic eAertise< articu'ar'y in the fie'd of de$and forecastin&. Pro>ected &rowth rates for
different sectors of the econo$y wi'' a'so be ta4en into account in the eAercise of de$and
forecastin&.
3.4 1he Nationa' +'ectricity P'an for the on&oin& 1.th P'an eriod and 11th P'an and ersective
P'an for the 1.th< 11th % 12th P'an eriods wou'd be reared and notified after reviewin& and
revisin& the eAistin& Power P'an reared by 7+A. 1his wi'' be done within siA $onths.
4#& ISS,ES ADD+ESSED
1he o'icy see4s to address the fo''owin& issuesC
#ura' +'ectrification
-eneration
1rans$ission
2istribution
#ecovery of 7ost of services % 1ar&etted Subsidies.
1echno'o&y 2eve'o$ent and #esearch and 2eve'o$ent :#%2;
7o$etition ai$ed at 7onsu$er Benefits
8inancin& Power Sector Pro&ra$$es Inc'udin& Private Sector Particiation.
+ner&y 7onservation
+nviron$enta' Issues
1rainin& and Gu$an #esource 2eve'o$ent
7o&eneration and Non!7onventiona' +ner&y Sources
152
Protection of 7onsu$er interests and Hua'ity Standards
B#% +,+A! E!ECT+IFICATI"N
5.1.1 1he 4ey deve'o$ent ob>ective of the ower sector is su'y of e'ectricity to a'' areas inc'udin&
rura' areas as $andated in section " of the +'ectricity Act. Both the centra' &overn$ent and state
&overn$ents wou'd >oint'y endeavour to achieve this ob>ective at the ear'iest. 7onsu$ers<
articu'ar'y those who are ready to ay a tariff which ref'ects efficient costs have the ri&ht to &et
uninterruted twenty four hours su'y of =ua'ity ower. About 5"B of rura' househo'ds have not
yet been e'ectrified even thou&h $any of these househo'ds are wi''in& to ay for e'ectricity.
2eter$ined efforts shou'd be $ade to ensure that the tas4 of rura' e'ectrification for securin&
e'ectricity access to a'' househo'ds and a'so ensurin& that e'ectricity reaches oor and $ar&ina'
sections of the society at reasonab'e rates is co$'eted within the neAt five years.
5.1.2 #e'iab'e rura' e'ectrification syste$ wi'' ai$ at creatin& the fo''owin&C
:a; #ura' +'ectrification 2istribution Bac4bone :#+2B; with at 'east one 33(11 4v :or ""(11 4v;
substation in every B'oc4 and $ore if re=uired as er 'oad< networ4ed and connected aroriate'y to
the state trans$ission syste$
:b; +$anatin& fro$ #+2B wou'd be su'y feeders and one distribution transfor$er at 'east in
every vi''a&e sett'e$ent.
:c; Gouseho'd +'ectrification fro$ distribution transfor$er to connect every househo'd on de$and.
:d; 3herever above is not feasib'e :it is neither cost effective nor the oti$a' so'ution to rovide &rid
connectivity; decentra'iEed distributed &eneration faci'ities to&ether with 'oca' distribution networ4
wou'd be rovided so that every househo'd &ets access to e'ectricity. 1his wou'd be done either
throu&h conventiona' or non!conventiona' $ethods of e'ectricity &eneration whichever is $ore
suitab'e and econo$ica'. Non!conventiona' sources of ener&y cou'd be uti'iEed even where &rid
connectivity eAists rovided it is found to be cost effective.
:e; 2eve'o$ent of infrastructure wou'd a'so cater for re=uire$ent of a&ricu'ture % other econo$ic
activities inc'udin& irri&ation u$ sets< s$a'' and $ediu$ industries< 4hadi and vi''a&e industries<
co'd chain and socia' services 'i4e hea'th and education.
5.1.3 Particu'ar attention wou'd be &iven in househo'd e'ectrification to da'it bastis< triba' areas and
other wea4er sections.
5.1.4 #ura' +'ectrification 7ororation of India< a -overn$ent of India enterrise wi'' be the noda'
a&ency at 7entra' -overn$ent 'eve' to i$'e$ent the ro&ra$$e for achievin& the &oa' set by
Nationa' 7o$$on Mini$u$ Pro&ra$$e of &ivin& access to e'ectricity to a'' the househo'ds in neAt
five years. Its ro'e is bein& suitab'y en'ar&ed to ensure ti$e'y i$'e$entation of rura' e'ectrification
153
ro>ects.
5.1.5 1ar&etted eAansion in access to e'ectricity for rura' househo'ds in the desired ti$efra$e can be
achieved if the distribution 'icensees recover at 'east the cost of e'ectricity and re'ated 9%M
eAenses fro$ consu$ers< eAcet for 'ife'ine suort to househo'ds be'ow the overty 'ine who
wou'd need to be ade=uate'y subsidiEed. Subsidies shou'd be roer'y tar&eted at the intended
beneficiaries in the $ost efficient $anner. -overn$ent reco&niEes the need for rovidin& necessary
caita' subsidy and soft 'on&!ter$ debt finances for invest$ent in rura' e'ectrification as this wou'd
reduce the cost of su'y in rura' areas. Ade=uate funds wou'd need to be $ade avai'ab'e for the
sa$e throu&h the P'an rocess. A'so co$$ensurate or&aniEationa' suort wou'd need to be created
for ti$e'y i$'e$entation. 1he 7entra' -overn$ent wou'd assist the State -overn$ents in
achievin& this.
5.1." Necessary institutiona' fra$ewor4 wou'd need to be ut in 'ace not on'y to ensure creation of
rura' e'ectrification infrastructure but a'so to oerate and $aintain su'y syste$ for securin&
re'iab'e ower su'y to consu$ers. #esonsibi'ity of oeration % $aintenance and cost recovery
cou'd be dischar&ed by uti'ities throu&h aroriate arran&e$ents with Panchayats< 'oca' authorities<
N-9s and other franchisees etc.
5.1.) 1he &i&antic tas4 of rura' e'ectrification re=uires aroriate cooeration a$on& various
a&encies of the State -overn$ents< 7entra' -overn$ent and articiation of the co$$unity.
+ducation and awareness ro&ra$$es wou'd be essentia' for creatin& de$and for e'ectricity and for
achievin& the ob>ective of effective co$$unity articiation.
B#( 2ENE+ATI"N
5.2.1 Inade=uacy of &eneration has characteriEed ower sector oeration in India. 1o rovide
avai'abi'ity of over 1... units of er caita e'ectricity by year 2.12 it had been esti$ated that need
based caacity addition of $ore than 1<..<... M3 wou'd be re=uired durin& the eriod 2..2!12.
5.2.2 1he -overn$ent of India has initiated severa' refor$ $easures to create a favourab'e
environ$ent for addition of new &eneratin& caacity in the country. 1he +'ectricity Act 2..3 has ut
in 'ace a hi&h'y 'ibera' fra$ewor4 for &eneration. 1here is no re=uire$ent of 'icensin& for
&eneration. 1he re=uire$ent of techno!econo$ic c'earance of 7+A for ther$a' &eneration ro>ect is
no 'on&er there. 8or hydroe'ectric &eneration a'so< the 'i$it of caita' eAenditure< above which
concurrence of 7+A is re=uired< wou'd be raised suitab'y fro$ the resent 'eve'. 7ative &eneration
has been freed fro$ a'' contro's.
5.2.3 In order to fu''y $eet both ener&y and ea4 de$and by 2.12< there is a need to create ade=uate
reserve caacity $ar&in. In addition to enhancin& the overa'' avai'abi'ity of insta''ed caacity to
*5B< a sinnin& reserve of at 'east 5B< at nationa' 'eve'< wou'd need to be created to ensure &rid
154
security and =ua'ity and re'iabi'ity of ower su'y.
5.2.4 1he ro&ress of i$'e$entation of caacity addition 'ans and &rowth of de$and wou'd need
to be constant'y $onitored and necessary ad>ust$ents $ade fro$ ti$e to ti$e. In creatin& new
&eneration caacities< aroriate techno'o&y $ay be considered 4eein& in view the 'i4e'y widenin&
of the difference between ea4 de$and and the base 'oad.
Dydro 2eneration
5.2.5 Gydroe'ectricity is a c'ean and renewab'e source of ener&y. MaAi$u$ e$hasis wou'd be 'aid
on the fu'' deve'o$ent of the feasib'e hydro otentia' in the country. 1he 5.<... M3 hydro
initiative has been a'ready 'aunched and is bein& vi&orous'y ursued with 2P#s for ro>ects of
33<... M3 caacity a'ready under rearation.
5.2." Garnessin& hydro otentia' seedi'y wi'' a'so faci'itate econo$ic deve'o$ent of States<
articu'ar'y North!+astern States< Si44i$< ?ttarancha'< Gi$acha' Pradesh and F%I< since a 'ar&e
roortion of our hydro ower otentia' is 'ocated in these States. 1he States with hydro otentia'
need to focus on the fu'' deve'o$ent of these otentia's at the ear'iest.
5.2.) Gyde' ro>ects ca'' for co$arative'y 'ar&er caita' invest$ent. 1herefore< debt financin& of
'on&er tenure wou'd need to be $ade avai'ab'e for hydro ro>ects. 7entra' -overn$ent is co$$itted
to o'icies that ensure financin& of viab'e hydro ro>ects.
5.2.* State -overn$ents need to review rocedures for 'and ac=uisition< and other
arova's(c'earances for seedy i$'e$entation of hydroe'ectric ro>ects.
5.2., 1he 7entra' -overn$ent wi'' suort the State -overn$ents for eAeditious deve'o$ent of
their hydroe'ectric ro>ects by offerin& services of 7entra' Pub'ic Sector ?nderta4in&s 'i4e Nationa'
Gydroe'ectric Power 7ororation :NGP7;.
5.2.1. Proer i$'e$entation of Nationa' Po'icy on #ehabi'itation and #esett'e$ent :#%#; wou'd
be essentia' in this re&ard so as to ensure that the concerns of ro>ect!affected fa$i'ies are addressed
ade=uate'y.
5.2.11 Ade=uate safe&uards for environ$enta' rotection with suitab'e $echanis$ for $onitorin& of
i$'e$entation of +nviron$enta' Action P'an and #%# Sche$es wi'' be ut in 'ace.
T5ermal 2eneration
5.2.12 +ven with fu'' deve'o$ent of the feasib'e hydro otentia' in the country< coa' wou'd
necessari'y continue to re$ain the ri$ary fue' for $eetin& future e'ectricity de$and.
5.2.13 I$orted coa' based ther$a' ower stations< articu'ar'y at coasta' 'ocations< wou'd be
encoura&ed based on their econo$ic viabi'ity. ?se of 'ow ash content coa' wou'd a'so he' in
155
reducin& the rob'e$ of f'y ash e$issions.
5.2.14 Si&nificant 0i&nite resources in the country are 'ocated in 1a$i' Nadu< -u>arat and #a>asthan
and these shou'd be increasin&'y uti'iEed for ower &eneration. 0i&nite $inin& techno'o&y needs to
be i$roved to reduce costs.
5.2.15 ?se of &as as a fue' for ower &eneration wou'd deend uon its avai'abi'ity at reasonab'e
rices. Natura' &as is bein& used in -as 1urbine (7o$bined 7yc'e -as 1urbine :-1(77-1; stations<
which current'y accounts for about 1. B of tota' caacity. Power sector consu$es about 4.B of the
tota' &as in the country. New ower &eneration caacity cou'd co$e u based on indi&enous &as
findin&s< which can e$er&e as a $a>or source of ower &eneration if rices are reasonab'e. A
nationa' &as &rid coverin& various arts of the country cou'd faci'itate deve'o$ent of such
caacities.
5.2.1" I$orted 0N- based ower 'ants are a'so a otentia' source of e'ectricity and the ace of
their deve'o$ent wou'd deend on their co$$ercia' viabi'ity. 1he eAistin& ower 'ants usin&
'i=uid fue's shou'd shift to use of Natura' -as(0N- at the ear'iest to reduce the cost of &eneration.
5.2.1) 8or ther$a' ower< econo$ics of &eneration and su'y of e'ectricity shou'd be the basis for
choice of fue' fro$ a$on& the otions avai'ab'e. It wou'd be econo$ica' for new &eneratin& stations
to be 'ocated either near the fue' sources e.&. ithead 'ocations or 'oad centres.
5.2.1* -eneratin& co$anies $ay enter into $ediu$ to 'on&!ter$ fue' su'y a&ree$ents secia''y
with resect to i$orted fue's for co$$ercia' viabi'ity and security of su'y.
N/clear Po:er
5.2.1, Nuc'ear ower is an estab'ished source of ener&y to $eet base 'oad de$and. Nuc'ear ower
'ants are bein& set u at 'ocations away fro$ coa'$ines. Share of nuc'ear ower in the overa''
caacity rofi'e wi'' need to be increased si&nificant'y. +cono$ics of &eneration and resu'tant tariff
wi'' be< a$on& others< i$ortant considerations. Pub'ic sector invest$ents to create nuc'ear
&eneration caacity wi'' need to be steed u. Private sector artnershi wou'd a'so be faci'itated to
see that not on'y tar&ets are achieved but eAceeded.
Non3conventional Energy So/rces
5.2.2. 8easib'e otentia' of non!conventiona' ener&y resources< $ain'y s$a'' hydro< wind and bio!
$ass wou'd a'so need to be eA'oited fu''y to create additiona' ower &eneration caacity. 3ith a
view to increase the overa'' share of non!conventiona' ener&y sources in the e'ectricity $iA< efforts
wi'' be $ade to encoura&e rivate sector articiation throu&h suitab'e ro$otiona' $easures.
15"
+enovation and 0oderniHation $+<0*
5.2.21 9ne of the $a>or achieve$ents of the ower sector has been a si&nificant increase in
avai'abi'ity and 'ant 'oad factor of ther$a' ower stations secia''y over the 'ast few years.
#enovation and $oderniEation for achievin& hi&her efficiency 'eve's needs to be ursued vi&orous'y
and a'' eAistin& &eneration caacity shou'd be brou&ht to $ini$u$ accetab'e standards. 1he -ovt.
of India is rovidin& financia' suort for this urose.
5.2.22 8or ro>ects erfor$in& be'ow accetab'e standards< #%M shou'd be underta4en as er we''!
defined 'ans featurin& necessary cost!benefit ana'ysis. If econo$ic oeration does not aear
feasib'e throu&h #%M< then there $ay be no a'ternative to c'osure of such 'ants as the 'ast resort.
5.2.23 In cases of 'ants with oor 9%M record and ersistin& oerationa' rob'e$s< a'ternative
strate&ies inc'udin& chan&e of $ana&e$ent $ay need to be considered so as to i$rove the
efficiency to accetab'e 'eve's of these ower stations.
Captive 2eneration
5.2.24 1he 'ibera' rovision in the +'ectricity Act< 2..3 with resect to settin& u of cative ower
'ant has been $ade with a view to not on'y securin& re'iab'e< =ua'ity and cost effective ower but
a'so to faci'itate creation of e$'oy$ent oortunities throu&h seedy and efficient &rowth of
industry.
5.2.25 1he rovision re'atin& to cative ower 'ants to be set u by &rou of consu$ers is ri$ari'y
ai$ed at enab'in& s$a'' and $ediu$ industries or other consu$ers that $ay not individua''y be in a
osition to set u 'ant of oti$a' siEe in a cost effective $anner. It needs to be noted that efficient
eAansion of s$a'' and $ediu$ industries across the country wou'd 'ead to creation of enor$ous
e$'oy$ent oortunities.
5.2.2" A 'ar&e nu$ber of cative and standby &eneratin& stations in India have sur'us caacity that
cou'd be su'ied to the &rid continuous'y or durin& certain ti$e eriods. 1hese 'ants offer a
siEeab'e and otentia''y co$etitive caacity that cou'd be harnessed for $eetin& de$and for ower.
?nder the Act< cative &enerators have access to 'icensees and wou'd &et access to consu$ers who
are a''owed oen access. -rid inter!connections for cative &enerators sha'' be faci'itated as er
section 3. of the Act. 1his shou'd be done on riority basis to enab'e cative &eneration to beco$e
avai'ab'e as distributed &eneration a'on& the &rid. 1owards this end< non!conventiona' ener&y sources
inc'udin& co!&eneration cou'd a'so 'ay a ro'e. Aroriate co$$ercia' arran&e$ents wou'd need to
be instituted between 'icensees and the cative &enerators for harnessin& of sare caacity ener&y
fro$ cative ower 'ants. 1he aroriate #e&u'atory 7o$$ission sha'' eAercise re&u'atory
oversi&ht on such co$$ercia' arran&e$ents between cative &enerators and 'icensees and deter$ine
15)
tariffs when a 'icensee is the off!ta4er of ower fro$ cative 'ant.
B#) T+ANS0ISSI"N
5.3.1 1he 1rans$ission Syste$ re=uires ade=uate and ti$e'y invest$ents and a'so efficient and
coordinated action to deve'o a robust and inte&rated ower syste$ for the country.
5.3.2 Ieein& in view the $assive increase 'anned in &eneration and a'so for deve'o$ent of ower
$ar4et< there is need for ade=uate'y au&$entin& trans$ission caacity. 3hi'e 'annin& new
&eneration caacities< re=uire$ent of associated trans$ission caacity wou'd need to be wor4ed out
si$u'taneous'y in order to avoid $is$atch between &eneration caacity and trans$ission faci'ities.
1he o'icy e$hasiEes the fo''owin& to $eet the above ob>ectiveC
1he 7entra' -overn$ent wou'd faci'itate the continued deve'o$ent of the Nationa' -rid for
rovidin& ade=uate infrastructure for inter!state trans$ission of ower and to ensure that
underuti'iEed &eneration caacity is faci'itated to &enerate e'ectricity for its trans$ission fro$
sur'us re&ions to deficit re&ions.
1he 7entra' 1rans$ission ?ti'ity :71?; and State 1rans$ission ?ti'ity :S1?; have the 4ey
resonsibi'ity of networ4 'annin& and deve'o$ent based on the Nationa' +'ectricity P'an in
coordination with a'' concerned a&encies as rovided in the Act. 1he 71? is resonsib'e for
the nationa' and re&iona' trans$ission syste$ 'annin& and deve'o$ent. 1he S1? is
resonsib'e for 'annin& and deve'o$ent of the intra!state trans$ission syste$. 1he 71?
wou'd need to coordinate with the S1?s for achieve$ent of the shared ob>ective of
e'i$inatin& trans$ission constraints in cost effective $anner.
Networ4 eAansion shou'd be 'anned and i$'e$ented 4eein& in view the anticiated
trans$ission needs that wou'd be incident on the syste$ in the oen access re&i$e. Prior
a&ree$ent with the beneficiaries wou'd not be a re!condition for networ4 eAansion.
71?(S1? shou'd underta4e networ4 eAansion after identifyin& the re=uire$ents in
consu'tation with sta4eho'ders and ta4in& u the eAecution after due re&u'atory arova's.
Structured infor$ation disse$ination and disc'osure rocedures shou'd be deve'oed by the
71? and S1?s to ensure that a'' sta4eho'ders are aware of the status of &eneration and
trans$ission ro>ects and 'ans. 1hese shou'd for$ a art of the overa'' 'annin& rocedures.
1he State #e&u'atory 7o$$issions who have not yet notified the &rid code under the
+'ectricity Act 2..3 shou'd notify the sa$e not 'ater than Sete$ber 2..5.
5.3.3 9en access in trans$ission has been introduced to ro$ote co$etition a$on&st the
&eneratin& co$anies who can now se'' to different distribution 'icensees across the country. 1his
shou'd 'ead to avai'abi'ity of cheaer ower. 1he Act $andates non!discri$inatory oen access in
15*
trans$ission fro$ the very be&innin&. 3hen oen access to distribution networ4s is introduced by
the resective State 7o$$issions for enab'in& bu'4 consu$ers to buy direct'y fro$ co$etin&
&enerators< co$etition in the $ar4et wou'd increase the avai'abi'ity of cheaer and re'iab'e ower
su'y. 1he #e&u'atory 7o$$issions need to rovide faci'itative fra$ewor4 for non!discri$inatory
oen access. 1his re=uires 'oad disatch faci'ities with state!of!the art co$$unication and data
ac=uisition caabi'ity on a rea' ti$e basis. 3hi'e this is the case current'y at the re&iona' 'oad
disatch centers< aroriate State 7o$$issions $ust ensure that $atchin& faci'ities with
techno'o&y u&rades are rovided at the State 'eve'< where necessary and rea'iEed not 'ater than Fune
2..".
5.3.4 1he Act rohibits the State trans$ission uti'ities(trans$ission 'icensees fro$ en&a&in& in
tradin& in e'ectricity. Power urchase a&ree$ents :PPAs; with the &eneratin& co$anies wou'd need
to be suitab'y assi&ned to the 2istribution 7o$anies< sub>ect to $utua' a&ree$ent. 1o the eAtent
necessary< such assi&n$ents can be done in a $anner to ta4e care of different 'oad rofi'es of the
2istribution 7o$anies. Non!discri$inatory oen access sha'' be rovided to co$etin& &enerators
su'yin& ower to 'icensees uon ay$ent of trans$ission char&e to be deter$ined by the
aroriate 7o$$ission. 1he aroriate 7o$$issions sha'' estab'ish such trans$ission char&es no
'ater than Fune 2..5.
5.3.5 1o faci'itate order'y &rowth and deve'o$ent of the ower sector and a'so for secure and
re'iab'e oeration of the &rid< ade=uate $ar&ins in trans$ission syste$ shou'd be created. 1he
trans$ission caacity wou'd be 'anned and bui't to cater to both the redundancy 'eve's and $ar&ins
4eein& in view internationa' standards and ractices. A we'' 'anned and stron& trans$ission syste$
wi'' ensure not on'y oti$a' uti'iEation of trans$ission caacities but a'so of &eneration faci'ities and
wou'd faci'itate achievin& u'ti$ate ob>ective of cost effective de'ivery of ower. 1o faci'itate cost
effective trans$ission of ower across the re&ion< a nationa' trans$ission tariff fra$ewor4 needs to
be i$'e$ented by 7+#7. 1he tariff $echanis$ wou'd be sensitive to distance< direction and
re'ated to =uantu$ of f'ow. As far as ossib'e< consistency needs to be $aintained in trans$ission
ricin& fra$ewor4 in inter!State and intra!State syste$s. 8urther it shou'd be ensured that the resent
networ4 deficiencies do not resu't in unreasonab'e trans$ission 'oss co$ensation re=uire$ents.
5.3." 1he necessary re&u'atory fra$ewor4 for rovidin& non!discri$inatory oen access in
trans$ission as $andated in the +'ectricity Act 2..3 is essentia' for si&na''in& efficient choice in
'ocatin& &eneration caacity and for encoura&in& tradin& in e'ectricity for oti$u$ uti'iEation of
&eneration resources and conse=uent'y for reducin& the cost of su'y.
5.3.) 1he sirit of the rovisions of the Act is to ensure indeendent syste$ oeration throu&h
N027< #027s and S027s. 1hese disatch centers< as er the rovisions of the Act< are to be
oerated by a -overn$ent co$any or authority as notified by the aroriate -overn$ent.
Gowever< ti'' such ti$e these a&encies(authorities are estab'ished the Act $andates that the 71? or
15,
S1?< as the case $ay be< sha'' oerate the #027s or S027. 1he arran&e$ent of 71? oeratin& the
#027s wou'd be reviewed by the 7entra' -overn$ent based on eAerience of wor4in& with the
eAistin& arran&e$ent. A view on this asect wou'd be ta4en by the 7entra' -overn$ent by 2ece$ber
2..5.
5.3.* 1he #e&iona' Power 7o$$ittees as envisa&ed in section section 2:55; wou'd be constituted by
the -overn$ent of India within two $onths with reresentation fro$ various sta4eho'ders.
5.3., 1he Nationa' 0oad 2esatch 7entre :N027; a'on& with its constitution and functions as
envisa&ed in Section 2" of the +'ectricity Act 2..3 wou'd be notified within three $onths. #027s
and N027 wi'' have co$'ete resonsibi'ity and co$$ensurate authority for s$ooth oeration of
the &rid irresective of the ownershi of the trans$ission syste$< be it under 7PS?s< State ?ti'ity or
rivate sector.
5.3.1. Secia' $echanis$s wou'd be created to encoura&e rivate invest$ent in trans$ission sector
so that sufficient invest$ents are $ade for achievin& the ob>ective of de$and to be fu''y $et by
2.12.
B#4 DIST+I,TI"N
5.4.1 2istribution is the $ost critica' se&$ent of the e'ectricity business chain. 1he rea' cha''en&e of
refor$s in the ower sector 'ies in efficient $ana&e$ent of the distribution sector.
5.4.2 1he Act rovides for a robust re&u'atory fra$ewor4 for distribution 'icensees to safe&uard
consu$er interests. It a'so creates a co$etitive fra$ewor4 for the distribution business< offerin&
otions to consu$ers< throu&h the concets of oen access and $u'ti'e 'icensees in the sa$e area of
su'y.
5.4.3 8or achievin& efficiency &ains roer restructurin& of distribution uti'ities is essentia'.
Ade=uate transition financin& suort wou'd a'so be necessary for these uti'ities. Such suort
shou'd be arran&ed 'in4ed to attain$ent of redeter$ined efficiency i$rove$ents and reduction in
cash 'osses and uttin& in 'ace aroriate &overnance structure for insu'atin& the service roviders
fro$ eAtraneous interference whi'e at the sa$e ti$e ensurin& transarency and accountabi'ity. 8or
ensurin& financia' viabi'ity and sustainabi'ity< State -overn$ents wou'd need to restructure the
'iabi'ities of the State +'ectricity Boards to ensure that the successor co$anies are not burdened
with ast 'iabi'ities. 1he 7entra' -overn$ent wou'd a'so assist the States< which deve'o a c'ear
road$a for turnaround< in arran&in& transition financin& fro$ various sources which sha'' be 'in4ed
to redeter$ined i$rove$ents and efficiency &ains ai$ed at attainin& financia' viabi'ity and a'so
uttin& in 'ace aroriate &overnance structures.
5.4.4 7onducive business environ$ent in ter$s of ade=uate returns and suitab'e transitiona' $ode'
with redeter$ined i$rove$ents in efficiency ara$eters in distribution business wou'd be
1".
necessary for faci'itatin& fundin& and attractin& invest$ents in distribution. Mu'ti!Lear 1ariff :ML1;
fra$ewor4 is an i$ortant structura' incentive to $ini$iEe ris4s for uti'ities and consu$ers< ro$ote
efficiency and raid reduction of syste$ 'osses. It wou'd serve ub'ic interest throu&h econo$ic
efficiency and i$roved service =ua'ity. It wou'd a'so brin& &reater redictabi'ity to consu$er tariffs
by restrictin& tariff ad>ust$ents to 4nown indicators such as ower urchase rices and inf'ation
indices. Private sector articiation in distribution needs to be encoura&ed for achievin& the re=uisite
reduction in trans$ission and distribution 'osses and i$rovin& the =ua'ity of service to the
consu$ers.
5.4.5 1he +'ectricity Act 2..3 enab'es co$etin& &eneratin& co$anies and tradin& 'icensees<
besides the area distribution 'icensees< to se'' e'ectricity to consu$ers when oen access in
distribution is introduced by the State +'ectricity #e&u'atory 7o$$issions. As re=uired by the Act<
the S+#7s sha'' notify re&u'ations by Fune 2..5 that wou'd enab'e oen access to distribution
networ4s in ter$s of sub!section 2 of section 42 which stiu'ates that such oen access wou'd be
a''owed< not 'ater than five years fro$ 2)th Fanuary 2..4 to consu$ers who re=uire a su'y of
e'ectricity where the $aAi$u$ ower to be $ade avai'ab'e at any ti$e eAceeds one $e&a watt.
Section 4, of the Act rovides that such consu$ers who have been a''owed oen access under
section 42 $ay enter into a&ree$ent with any erson for su'y of e'ectricity on such ter$s and
conditions< inc'udin& tariff< as $ay be a&reed uon by the$. 3hi'e $a4in& re&u'ations for oen
access in distribution< the S+#7s wi'' a'so deter$ine whee'in& char&es and cross!subsidy surchar&e
as re=uired under section 42 of the Act.
5.4." A ti$e!bound ro&ra$$e shou'd be drawn u by the State +'ectricity #e&u'atory 7o$$issions
:S+#7; for se&re&ation of technica' and co$$ercia' 'osses throu&h ener&y audits. +ner&y
accountin& and dec'aration of its resu'ts in each defined unit< as deter$ined by S+#7s< shou'd be
$andatory not 'ater than March 2..). An action 'an for reduction of the 'osses with ade=uate
invest$ents and suitab'e i$rove$ents in &overnance shou'd be drawn u. Standards for re'iabi'ity
and =ua'ity of su'y as we'' as for 'oss 'eve's sha'' a'so be secified <fro$ ti$e to ti$e< so as to
brin& these in 'ine with internationa' ractices by year 2.12.
5.4.) 9ne of the 4ey rovisions of the Act on co$etition in distribution is the concet of $u'ti'e
'icensees in the sa$e area of su'y throu&h their indeendent distribution syste$s. State
-overn$ents have fu'' f'eAibi'ity in carvin& out distribution Eones whi'e restructurin& the
-overn$ent uti'ities. 8or &rant of second and subse=uent distribution 'icence within the area of an
incu$bent distribution 'icensee< a revenue district< a Municia' 7ounci' for a s$a''er urban area or a
Municia' 7ororation for a 'ar&er urban area as defined in the Artic'e 243:H; of 7onstitution of
India :)4th A$end$ent; $ay be considered as the $ini$u$ area. 1he -overn$ent of India wou'd
notify within three $onths< the re=uire$ents for co$'iance by a'icant for second and subse=uent
distribution 'icence as envisa&ed in Section 14 of the Act. 3ith a view to rovide benefits of
co$etition to a'' section of consu$ers< the second and subse=uent 'icensee for distribution in the
1"1
sa$e area sha'' have ob'i&ation to su'y to a'' consu$ers in accordance with rovisions of section
43 of the +'ectricity Act 2..3. 1he S+#7s are re=uired to re&u'ate the tariff inc'udin& connection
char&es to be recovered by a distribution 'icensee under the rovisions of the Act. 1his wi'' ensure
that second distribution 'icensee does not resort to cherry ic4in& by de$andin& unreasonab'e
connection char&es fro$ consu$ers.
5.4.* 1he Act $andates su'y of e'ectricity throu&h a correct $eter within a stiu'ated eriod. 1he
Authority shou'd deve'o re&u'ations as re=uired under Section 55 of the Act within three $onths.
5.4., 1he Act re=uires a'' consu$ers to be $etered within two years. 1he S+#7s $ay obtain fro$
the 2istribution 0icensees their $eterin& 'ans< arove these< and $onitor the sa$e. 1he S+#7s
shou'd encoura&e use of re!aid $eters. In the first instance< 192 $eters for 'ar&e consu$ers with
a $ini$u$ 'oad of one M/A are a'so to be encoura&ed. 1he S+#7s shou'd a'so ut in 'ace
indeendent third!arty $eter testin& arran&e$ents.
5.4.1. Modern infor$ation techno'o&y syste$s $ay be i$'e$ented by the uti'ities on a riority
basis< after considerin& cost and benefits< to faci'itate creation of networ4 infor$ation and custo$er
data base which wi'' he' in $ana&e$ent of 'oad< i$rove$ent in =ua'ity< detection of theft and
ta$erin&< custo$er infor$ation and ro$t and correct bi''in& and co''ection . Secia' e$hasis
shou'd be 'aced on consu$er indeAin& and $ain& in a ti$e bound $anner. Suort is bein&
rovided for infor$ation techno'o&y based syste$s under the Acce'erated Power 2eve'o$ent and
#efor$s Pro&ra$$e :AP2#P;.
5.4.11 Gi&h /o'ta&e 2istribution Syste$ is an effective $ethod for reduction of technica' 'osses<
revention of theft< i$roved vo'ta&e rofi'e and better consu$er service. It shou'd be ro$oted to
reduce 01(G1 ratio 4eein& in view the techno econo$ic considerations.
5.4.12 S7A2A and data $ana&e$ent syste$s are usefu' for efficient wor4in& of 2istribution
Syste$s. A ti$e bound ro&ra$$e for i$'e$entation of S7A2A and data $ana&e$ent syste$
shou'd be obtained fro$ 2istribution 0icensees and aroved by the S+#7s 4eein& in view the
techno econo$ic considerations. +fforts shou'd be $ade to insta'' substation auto$ation e=ui$ent
in a hased $anner.
5.4.13 1he Act has rovided for strin&ent $easures a&ainst theft of e'ectricity. 1he States and
distribution uti'ities shou'd ensure effective i$'e$entation of these rovisions. 1he State
-overn$ents $ay set u Secia' 7ourts as envisa&ed in Section 153 of the Act.
1"2
B#B +EC".E+1 "F C"ST "F SE+.ICES < TA+2ETTED S,SIDIES
5.5.1 1here is an ur&ent need for ensurin& recovery of cost of service fro$ consu$ers to $a4e the
ower sector sustainab'e.
5.5.2 A $ini$u$ 'eve' of suort $ay be re=uired to $a4e the e'ectricity affordab'e for consu$ers
of very oor cate&ory. 7onsu$ers be'ow overty 'ine who consu$e be'ow a secified 'eve'< say 3.
units er $onth< $ay receive secia' suort in ter$s of tariff which are cross!subsidiEed. 1ariffs for
such desi&nated &rou of consu$ers wi'' be at 'east 5. B of the avera&e :overa''; cost of su'y.
1his rovision wi'' be further re!eAa$ined after five years.
5.5.3 9ver the 'ast few decades cross!subsidies have increased to unsustainab'e 'eve's. 7ross!
subsidies hide inefficiencies and 'osses in oerations. 1here is ur&ent need to correct this i$ba'ance
without &ivin& tariff shoc4 to consu$ers. 1he eAistin& cross!subsidies for other cate&ories of
consu$ers wou'd need to be reduced ro&ressive'y and &radua''y.
5.5.4 1he State -overn$ents $ay &ive advance subsidy to the eAtent they consider aroriate in
ter$s of section "5 of the Act in which case necessary bud&et rovision wou'd be re=uired to be
$ade in advance so that the uti'ity does not suffer financia' rob'e$s that $ay affect its oerations.
+fforts wou'd be $ade to ensure that the subsidies reach the tar&eted beneficiaries in the $ost
transarent and efficient way.
B#' TECDN"!"21 DE.E!"P0ENT AND +<D
5.".1 +ffective uti'iEation of a'' avai'ab'e resources for &eneration< trans$ission and distribution of
e'ectricity usin& efficient and cost effective techno'o&ies is of ara$ount i$ortance. 9erations and
$ana&e$ent of vast and co$'eA ower syste$s re=uire coordination a$on& the $u'ti'e a&encies
invo'ved. +ffective contro' of ower syste$ at state< re&iona' and nationa' 'eve' can be achieved on'y
throu&h use of Infor$ation 1echno'o&y. A'ication of I1 has &reat otentia' in reducin& technica' %
co$$ercia' 'osses in distribution and rovidin& consu$er friend'y services. Inte&rated resource
'annin& and de$and side $ana&e$ent wou'd a'so re=uire adotin& state of the art techno'o&ies.
Secia' efforts wou'd be $ade for research< deve'o$ent de$onstration and co$$ercia'iEation of
non!conventiona' ener&y syste$s. Such syste$s wou'd need to $eet internationa' standards<
secifications and erfor$ance ara$eters.
5.".2 +fficient techno'o&ies< 'i4e suer critica' techno'o&y< I-77 etc and 'ar&e siEe units wou'd be
&radua''y introduced for &eneration of e'ectricity as their cost effectiveness is estab'ished.
Si$u'taneous'y< deve'o$ent and de'oy$ent of techno'o&ies for roductive use of f'y ash wou'd be
&iven riority and encoura&e$ent.
5.".3 Si$i'ar'y< cost effective techno'o&ies wou'd re=uire to be deve'oed for hi&h vo'ta&e ower
1"3
f'ows over 'on& distances with $ini$u$ ossib'e 'osses. Secific infor$ation techno'o&y too's need
to be deve'oed for $eetin& the re=uire$ents of the e'ectricity industry inc'udin& hi&h'y
sohisticated contro' syste$s for co$'eA &eneration and trans$ission oerations< efficient
distribution business and user friend'y consu$er interface.
5.".4 1he country has a stron& research and deve'o$ent base in the e'ectricity sector which wou'd
be further au&$ented. #%2 activities wou'd be further intensified and Missions wi'' be constituted
for achievin& desired resu'ts in identified riority areas. A suitab'e fundin& $echanis$ wou'd be
evo'ved for ro$otin& #% 2 in the Power Sector. 0ar&e ower co$anies shou'd set aside a ortion
of their rofits for suort to #%2.
B#E C"0PETITI"N AI0ED AT C"NS,0E+ ENEFITS
5.).1 1o ro$ote $ar4et deve'o$ent< a art of new &eneratin& caacities< say 15B $ay be so'd
outside 'on&!ter$ PPAs . As the ower $ar4ets deve'o< it wou'd be feasib'e to finance ro>ects with
co$etitive &eneration costs outside the 'on&!ter$ ower urchase a&ree$ent fra$ewor4. In the
co$in& years< a si&nificant ortion of the insta''ed caacity of new &eneratin& stations cou'd
articiate in co$etitive ower $ar4ets. 1his wi'' increase the deth of the ower $ar4ets and
rovide a'ternatives for both &enerators and 'icensees(consu$ers and in 'on& run wou'd 'ead to
reduction in tariff.
8or achievin& this< the o'icy underscores the fo''owin&C!
a. It is the function of the 7entra' +'ectricity #e&u'atory 7o$$ission to issue 'icense for inter!
state tradin& which wou'd inc'ude authoriEation for tradin& throu&hout the country.
b. 1he AB1 re&i$e introduced by 7+#7 at the nationa' 'eve' has had a ositive i$act. It has
a'so enab'ed a credib'e sett'e$ent $echanis$ for intra!day ower transfers fro$ 'icenses
with sur'uses to 'icenses eAeriencin& deficits. S+#7s are advised to introduce the AB1
re&i$e at the State 'eve' within one year.
c. 7ative &eneratin& 'ants shou'd be er$itted to se'' e'ectricity to 'icensees and consu$ers
when they are a''owed oen access by S+#7s under section 42 of the Act .
d. 2eve'o$ent of ower $ar4et wou'd need to be underta4en by the Aroriate 7o$$ission
in consu'tation with a'' concerned.
e. 1he 7entra' 7o$$ission and the State 7o$$issions are e$owered to $a4e re&u'ations
under section 1)* and section 1*1 of the Act resective'y. 1hese re&u'ations wi'' ensure
i$'e$entation of various rovisions of the Act re&ardin& encoura&e$ent to co$etition and
a'so consu$er rotection. 1he #e&u'atory 7o$$issions are advised to notify various
re&u'ations eAeditious'y.
1"4
f. +nab'in& re&u'ations for inter and intra State tradin& and a'so re&u'ations on ower eAchan&e
sha'' be notified by the aroriate 7o$$issions within siA $onths.
B#C FINANCIN2 P"WE+ SECT"+ P+"2+A00ES INC!,DIN2 P+I.ATE SECT"+
PA+TICIPATI"N
5.*.1 1o $eet the ob>ective of raid econo$ic &rowth and Power for a''Q inc'udin& househo'd
e'ectrification< it is esti$ated that an invest$ent of the order of #s.,<..<... crores at 2..2!.3 rice
'eve' wou'd be re=uired to finance &eneration< trans$ission< sub!trans$ission< distribution and rura'
e'ectrification ro>ects. Power bein& $ost crucia' infrastructure< ub'ic sector invest$ents< both at
the 7entra' -overn$ent and State -overn$ents< wi'' have to be steed u. 7onsiderin& the
$a&nitude of the eAansion of the sector re=uired< a siEeab'e art of the invest$ents wi'' a'so need to
be brou&ht in fro$ the rivate sector. 1he Act creates a conducive environ$ent for invest$ents in a''
se&$ents of the industry< both for ub'ic sector and rivate sector< by re$ovin& barrier to entry in
different se&$ents. Section "3 of the Act rovides for articiation of su'iers on co$etitive basis
in different se&$ents which wi'' further encoura&e rivate sector invest$ent. Pub'ic service
ob'i&ations 'i4e increasin& access to e'ectricity to rura' househo'ds and s$a'' and $ar&ina' far$ers
have hi&hest riority over ub'ic finances.
5.*.2 1he ub'ic sector shou'd be ab'e to raise interna' resources so as to at 'east $eet the e=uity
re=uire$ent of invest$ents even after suitab'e &ross bud&etary suort fro$ the -overn$ent at the
7entre and in the states in order to co$'ete their on!&oin& ro>ects in a ti$e!bound $anner.
+Aansion of ub'ic sector invest$ents wou'd be deendent on the financia' viabi'ity of the
roosed ro>ects. It wou'd< therefore< be i$erative that an aroriate sur'us is &enerated throu&h
return on invest$ents and< at the sa$e ti$e< dereciation reserve created so as to fu''y $eet the debt
service ob'i&ation. 1his wi'' not on'y enab'e financia' c'osure but a'so ban4abi'ity of the ro>ect
wou'd be i$roved for eAansion ro&ra$$es< with the 7entra' and State 'eve' ub'ic sector
or&aniEations< as a'so rivate sector ro>ects< bein& in a osition to fu'fi' their ob'i&ations toward
e=uity fundin& and debt reay$ents.
5.*.3 ?nder sub!section :2; of Section 42 of the Act< a surchar&e is to be 'evied by the resective
State 7o$$issions on consu$ers switchin& to a'ternate su'ies under oen access. 1his is to
co$ensate the host distribution 'icensee servin& such consu$ers who are er$itted oen access
under section 42:2;< for 'oss of the cross!subsidy e'e$ent bui't into the tariff of such consu$ers. An
additiona' surchar&e $ay a'so be 'evied under sub!section :4; of Section 42 for $eetin& the fiAed
cost of the distribution 'icensee arisin& out of his ob'i&ation to su'y in cases where consu$ers are
a''owed oen access. 1he a$ount of surchar&e and additiona' surchar&e 'evied fro$ consu$ers who
are er$itted oen access shou'd not beco$e so onerous that it e'i$inates co$etition that is
intended to be fostered in &eneration and su'y of ower direct'y to consu$ers throu&h the
rovision of 9en Access under Section 42:2; of the Act. 8urther it is essentia' that the Surchar&e be
1"5
reduced ro&ressive'y in ste with the reduction of cross!subsidies as foreseen in Section 42:2; of
the +'ectricity Act 2..3.
5.*.4 7aita' is scarce. Private sector wi'' have $u'ti'e otions for invest$ents. #eturn on
invest$ent wi''< therefore< need to be rovided in a $anner that the sector is ab'e to attract ade=uate
invest$ents at ar with< if not in reference to< invest$ent oortunities in other sectors. 1his wou'd
obvious'y be based on a c'ear understandin& and eva'uation of oortunities and ris4s. An
aroriate ba'ance wi'' have to be $aintained between the interests of consu$ers and the need for
invest$ents.
5.*.5 A'' efforts wi'' have to be $ade to i$rove the efficiency of oerations in a'' the se&$ents of
the industry. Suitab'e erfor$ance nor$s of oerations to&ether with incentives and disincentives
wi'' need to be evo'ved a'on& with aroriate arran&e$ent for sharin& the &ains of efficient
oerations with the consu$ers . 1his wi'' ensure rotection of consu$ersD interests on the one hand
and rovide $otivation for i$rovin& the efficiency of oerations on the other.
5.*." 7o$etition wi'' brin& si&nificant benefits to consu$ers < in which case< it is co$etition
which wi'' deter$ine the rice rather than any cost 'us eAercise on the basis of oeratin& nor$s and
ara$eters. A'' efforts wi'' need to be $ade to brin& the ower industry to this situation as ear'y as
ossib'e< in the overa'' interest of consu$ers. 2etai'ed &uide'ines for co$etitive biddin& as
stiu'ated in section "3 of the Act have been issued by the 7entra' -overn$ent.
5.*.) It wi'' be necessary that a'' the &eneratin& co$anies< trans$ission 'icensees and distribution
'icensees receive due ay$ents for effective dischar&e of their oerationa' ob'i&ations as a'so for
enab'in& the$ to $a4e fresh invest$ents needed for the eAansion ro&ra$$es. 8inancia' viabi'ity
of oerations and businesses wou'd< therefore< be essentia' for &rowth and deve'o$ent of the sector.
7oncerted efforts wou'd be re=uired for restorin& the financia' hea'th of the sector. 8or this urose<
tariff rationa'iEation wou'd need to be ensured by the S+#7s. 1his wou'd a'so inc'ude differentia'
ricin& for base< inter$ediate and ea4 ower.
5.*.* Stes wou'd a'so be ta4en to address the need for re&u'atory certainty based on indeendence
of the re&u'atory co$$issions and transarency in their functionin& to &enerate investorDs
confidence.
5.*., #o'e of rivate articiation in &eneration< trans$ission and distribution wou'd beco$e
increasin&'y critica' in view of the raid'y &rowin& invest$ent needs of the sector. 1he 7entra'
-overn$ent and the State -overn$ents need to deve'o wor4ab'e and successfu' $ode's for ub'ic
rivate artnershi. 1his wou'd a'so enab'e 'evera&in& rivate invest$ent with the ub'ic sector
finances. Mechanis$s for continuous dia'o&ue with industry for strea$'inin& rocedures for
encoura&in& rivate articiation in ower sector need to be ut in 'ace.
1""
Transmission < Distri7/tion !osses
5.*.1. It wou'd have to be c'ear'y reco&niEed that Power Sector wi'' re$ain unviab'e unti' 1%2
'osses are brou&ht down si&nificant'y and raid'y. A 'ar&e nu$ber of States have been reortin&
'osses of over 4.B in the recent years. By any standards< these are unsustainab'e and i$'y a steady
dec'ine of ower sector oerations. 7ontinuation of the resent 'eve' of 'osses wou'd not on'y ose a
threat to the ower sector oerations but a'so >eoardiEe the &rowth rosects of the econo$y as a
who'e. No refor$s can succeed in the $idst of such 'ar&e i'fera&es on a continuin& basis.
1he State -overn$ents wou'd reare a 8ive Lear P'an with annua' $i'estones to brin& down these
'osses eAeditious'y. 7o$$unity articiation< effective enforce$ent< incentives for entities< staff
and consu$ers< and techno'o&ica' u&radation shou'd for$ art of ca$ai&n efforts for reducin&
these 'osses. 1he 7entra' -overn$ent wi'' rovide incentive based assistance to States that are ab'e
to reduce 'osses as er a&reed ro&ra$$es.
B#A ENE+21 C"NSE+.ATI"N
5.,.1 1here is a si&nificant otentia' of ener&y savin&s throu&h ener&y efficiency and de$and side
$ana&e$ent $easures. In order to $ini$iEe the overa'' re=uire$ent< ener&y conservation and
de$and side $ana&e$ent :2SM; is bein& accorded hi&h riority. 1he +ner&y 7onservation Act has
been enacted and the Bureau of +ner&y +fficiency has been setu.
5.,.2 1he otentia' nu$ber of insta''ations where de$and side $ana&e$ent and ener&y conservation
$easures are to be carried out is very 'ar&e. Bureau of +ner&y +fficiency :B++; sha'' initiate action
in this re&ard. B++ wou'd a'so $a4e avai'ab'e the esti$ated conservation and 2SM otentia'< its
sta&ed i$'e$entation a'on& with cost esti$ates for consideration in the 'annin& rocess for
Nationa' +'ectricity P'an.
5.,.3 Periodic ener&y audits have been $ade co$u'sory for ower intensive industries under the
+ner&y 7onservation Act. 9ther industries $ay a'so be encoura&ed to adot ener&y audits and
ener&y conservation $easures. +ner&y conservation $easures sha'' be adoted in a'' -overn$ent
bui'din&s for which savin& otentia' has been esti$ated to be about 3.B ener&y. So'ar water heatin&
syste$s and so'ar assive architecture can contribute si&nificant'y to this effort.
5.,.4 In the fie'd of ener&y conservation initia' aroach wou'd be vo'untary and se'f!re&u'atin& with
e$hasis on 'abe''in& of a'iances. -radua''y as awareness increases< a $ore re&u'atory aroach
of settin& standards wou'd be fo''owed.
5.,.5 In the a&ricu'ture sector< the u$ sets and the water de'ivery syste$ en&ineered for hi&h
efficiency wou'd be ro$oted. In the industria' sector< ener&y efficient techno'o&ies shou'd be used
and ener&y audits carried out to indicate scoe for ener&y conservation $easures. Motors and drive
syste$ are the $a>or source of hi&h consu$tion in A&ricu'tura' and Industria' Sector. 1hese need to
1")
be addressed. +ner&y efficient 'i&htin& techno'o&ies shou'd a'so be adoted in industries< co$$ercia'
and do$estic estab'ish$ents.
5.,." In order to reduce the re=uire$ents for caacity additions< the difference between e'ectrica'
ower de$and durin& ea4 eriods and off!ea4 eriods wou'd have to be reduced. Suitab'e 'oad
$ana&e$ent techni=ues shou'd be adoted for this urose. 2ifferentia' tariff structure for ea4 and
off ea4 su'y and $eterin& arran&e$ents :1i$e of 2ay $eterin&; shou'd be conducive to 'oad
$ana&e$ent ob>ectives. #e&u'atory 7o$$issions shou'd ensure adherence to ener&y efficiency
standards by uti'ities.
5.,.) 8or effective i$'e$entation of ener&y conservation $easures< ro'e of +ner&y Service
7o$anies wou'd be en'ar&ed. Stes wou'd be ta4en to encoura&e and incentivise e$er&ence of such
co$anies.
5.,.* A nationa' ca$ai&n for brin&in& about awareness about ener&y conservation wou'd be
essentia' to achieve efficient consu$tion of e'ectricity.
5.,.,. A Nationa' Action P'an has been deve'oed. Pro&ress on a'' the roosed $easures wi'' be
$onitored with reference to the secific 'ans of action.
B#%& EN.I+"N0ENTA! ISS,ES
5.1..1 +nviron$enta' concerns wou'd be suitab'y addressed throu&h aroriate advance action by
way of co$rehensive +nviron$enta' I$act Assess$ent and i$'e$entation of +nviron$ent
Action P'an :+AP;.
5.1..2 Stes wou'd be ta4en for coordinatin& the efforts for strea$'inin& the rocedures in re&ard to
&rant of environ$enta' c'earances inc'udin& settin& u of K0and Ban4D and K8orest Ban4D.
5.1..3 Aroriate catch$ent area treat$ent for hydro ro>ects wou'd a'so be ensured and
$onitored.
5.1..4 Settin& u of coa' washeries wi'' be encoura&ed. Suitab'e stes wou'd a'so be ta4en so that
uti'iEation of f'y ash is ensured as er environ$enta' &uide'ines.
5.1..5 Settin& u of $unicia' so'id waste ener&y ro>ects in urban areas and recovery of ener&y
fro$ industria' eff'uents wi'' a'so be encoura&ed with a view to reducin& environ$enta' o''ution
aart fro$ &eneratin& additiona' ener&y.
5.1.." 8u'' co$'iance with rescribed environ$enta' nor$s and standards $ust be achieved in
oerations of a'' &eneratin& 'ants.
B#%% T+AININ2 AND D,0AN +ES",+CE DE.E!"P0ENT
1"*
In the new refor$s fra$ewor4 ushered by +'ectricity Act 2..3< it is articu'ar'y i$ortant that the
e'ectricity industry has access to roer'y trained hu$an resource. 1herefore< concerted action wou'd
be ta4en for au&$entin& trainin& infrastructure so that ade=uate we''!trained hu$an resource is $ade
avai'ab'e as er the need of the industry. Secia' attention wou'd need to be aid by the industry for
estab'ishin& trainin& infrastructure in the fie'd of e'ectricity distribution< re&u'ation< tradin& and
ower $ar4ets. +fforts shou'd be $ade so that ersonne' of e'ectricity su'y industry both in the
rivate and ub'ic sector beco$e $ore cost!conscious and consu$er!friend'y.
B#%( C"2ENE+ATI"N AND N"N3C"N.ENTI"NA! ENE+21 S",+CES
5.12.1 Non!conventiona' sources of ener&y bein& the $ost environ$ent friend'y there is an ur&ent
need to ro$ote &eneration of e'ectricity based on such sources of ener&y. 8or this urose< efforts
need to be $ade to reduce the caita' cost of ro>ects based on non!conventiona' and renewab'e
sources of ener&y. 7ost of ener&y can a'so be reduced by ro$otin& co$etition within such
ro>ects. At the sa$e ti$e< ade=uate ro$otiona' $easures wou'd a'so have to be ta4en for
deve'o$ent of techno'o&ies and a sustained &rowth of these sources.
5.12.2 1he +'ectricity Act 2..3 rovides that co!&eneration and &eneration of e'ectricity fro$ non!
conventiona' sources wou'd be ro$oted by the S+#7s by rovidin& suitab'e $easures for
connectivity with &rid and sa'e of e'ectricity to any erson and a'so by secifyin&< for urchase of
e'ectricity fro$ such sources< a ercenta&e of the tota' consu$tion of e'ectricity in the area of a
distribution 'icensee. Such ercenta&e for urchase of ower fro$ non!conventiona' sources shou'd
be $ade a'icab'e for the tariffs to be deter$ined by the S+#7s at the ear'iest. Pro&ressive'y the
share of e'ectricity fro$ non!conventiona' sources wou'd need to be increased as rescribed by State
+'ectricity #e&u'atory 7o$$issions. Such urchase by distribution co$anies sha'' be throu&h
co$etitive biddin& rocess. 7onsiderin& the fact that it wi'' ta4e so$e ti$e before non!
conventiona' techno'o&ies co$ete< in ter$s of cost< with conventiona' sources< the 7o$$ission
$ay deter$ine an aroriate differentia' in rices to ro$ote these techno'o&ies.
5.12.3 Industries in which both rocess heat and e'ectricity are needed are we'' suited for
co&eneration of e'ectricity. A si&nificant otentia' for co&eneration eAists in the country< articu'ar'y
in the su&ar industry. S+#7s $ay ro$ote arran&e$ents between the co!&enerator and the
concerned distribution 'icensee for urchase of sur'us ower fro$ such 'ants. 7o&eneration syste$
a'so needs to be encoura&ed in the overa'' interest of ener&y efficiency and a'so &rid stabi'ity.
B#%) P+"TECTI"N "F C"NS,0E+ INTE+ESTS AND G,A!IT1 STANDA+DS
5.13.1 Aroriate 7o$$ission shou'd re&u'ate uti'ities based on re!deter$ined indices on =ua'ity
of ower su'y. Para$eters shou'd inc'ude< a$on&st others< fre=uency and duration of interrution<
vo'ta&e ara$eters< har$onics< transfor$er fai'ure rates< waitin& ti$e for restoration of su'y<
ercenta&e defective $eters and waitin& 'ist of new connections. 1he Aroriate 7o$$issions
1",
wou'd secify eAected standards of erfor$ance.
5.13.2 #e'iabi'ity IndeA :#I; of su'y of ower to consu$ers shou'd be indicated by the distribution
'icensee. A road $a for dec'aration of #I for a'' cities and towns u to the 2istrict Gead=uarter
towns as a'so for rura' areas< shou'd be drawn by u S+#7s. 1he data of #I shou'd be co$i'ed and
ub'ished by 7+A.
5.13.3 It is advised that a'' State 7o$$issions shou'd for$u'ate the &uide'ines re&ardin& settin& u
of &rievance redressa' foru$ by the 'icensees as a'so the re&u'ations re&ardin& the 9$buds$an and
a'so aoint(desi&nate the 9$buds$an within siA $onths.
5.13.4 1he 7entra' -overn$ent< the State -overn$ents and +'ectricity #e&u'atory 7o$$issions
shou'd faci'itate caacity bui'din& of consu$er &rous and their effective reresentation before the
#e&u'atory 7o$$issions. 1his wi'' enhance the efficacy of re&u'atory rocess.
'#& C""+DINATED DE.E!"P0ENT
".1 +'ectricity bein& a concurrent sub>ect< a we''!coordinated aroach wou'd be necessary for
deve'o$ent of the ower sector. 1his is essentia' for the attain$ent of the ob>ective of rovidin&
e'ectricity!access to a'' househo'ds in neAt five years and rovidin& re'iab'e uninterruted =ua'ity
ower su'y to a'' consu$ers. 1he State -overn$ents have a $a>or ro'e< articu'ar'y in creation of
&eneration caacity< state 'eve' trans$ission and distribution. 1he 7entra' -overn$ent wou'd assist
the States in the attain$ent of this ob>ective. It wou'd be 'ayin& a suortive ro'e in fresh caacity
addition and a $a>or ro'e in deve'o$ent of the Nationa' -rid. 1he State -overn$ents need to
ensure the success of refor$s and restoration of financia' hea'th in distribution< which a'one can
enab'e the creation of re=uisite &eneration caacity. 1he #e&u'atory 7o$$issions have the
resonsibi'ity of ensurin& that the re&u'atory rocesses faci'itate the attain$ent of this ob>ective.
1hey a'so have a deve'o$enta' ro'e whose fu'fi''$ent wou'd need a 'ess for$a' and a consu'tative
rocess.
1he +'ectricity Act< 2..3 a'so rovides for $echanis$s 'i4e P7oordination foru$Q and PAdvisory
7o$$itteesQ to faci'itate consu'tative rocess. 1he Act a'so re=uires the #e&u'atory 7o$$issions to
ensure transarency in eAercise of their owers and in dischar&e of their functions. 1his in no way
$eans that the #e&u'atory 7o$$issions shou'd fo''ow for$a' >udicia' aroach. In fact< =uic4
disosa' of $atters wou'd re=uire an aroach invo'vin& consu'tations with sta4eho'ders.
".2 ?nder the Act< the #e&u'atory 7o$$issions are re=uired to erfor$ wide!ran&in&
resonsibi'ities. 1he aroriate -overn$ents need to ta4e stes to attract re&u'atory ersonne' with
re=uired bac4&round. 1he -ovt. of India wou'd ro$ote the institutiona' caabi'ity to rovide
trainin& to raise re&u'atory caacity in ter$s of the re=uired eAertise and s4i'' sets. 1he aroriate
-overn$ents shou'd rovide financia' autono$y to the #e&u'atory 7o$$issions. 1he Act rovides
that the aroriate -overn$ent sha'' constitute a 8und under section ,, or section 1.3 of the Act<
1).
as the case $ay be< to be ca''ed as #e&u'atory 7o$$ission 8und. 1he State -overn$ents are
advised to estab'ish this 8und eAeditious'y.
$A=ay S5an9ar*
Additiona' Secretary to the -overn$ent of India

1)1
CE+C $Terms < Condition o8 tari88* +eg/lations; (&&4 $('#&)#(&&4* and $%
st

Amendment* +eg/lations; (&&4 dated )
rd
Septem7er; (&&4
Central Electricity Regulatory Commission
Core 3, 7
th
Floor, Scope Complex, New Delhi 11 3!
"#ele No! $%3&%'11 F() No! $%3&1*
No! +,7-$.".*-$3,CERC $&
th
/arch $%
0n exercise o1 powers con1erre2 un2er Section 173 o1 the Electricity (ct,
$3, an2 all other powers ena4ling in this 4ehal1, an2 a1ter pre5ious
pu4lication, the Central Electricity Regulatory Commission here4y ma6es the
1ollowing regulations, namely7
C8(9#ER 1
9RE+0/0N(R:
1! Short title an2 commencement7 "1* #hese regulations may 4e calle2 the
Central Electricity Regulatory Commission "#erms an2 Con2itions o1 #ari;*
Regulations, $%!
"$* #hese regulations shall come into 1orce on 1!%!$%, an2 unless
re5iewe2 earlier or exten2e2 4y the Commission, shall remain in 1orce 1or a
perio2 o1 . years!
1 9ro5i2e2 that where a pro<ect, inclu2ing a part thereo1, has 4een
commissione2 4e1ore the 2ate o1 commencement o1 these regulations an2
whose tari; has not 4een =nally 2etermine2 4y the Commission till that 2ate,
tari; in respect o1 such a pro<ect or part thereo1, as the case may 4e, 1or the
perio2 en2ing 31!3!$% shall 4e 2etermine2 in accor2ance with the Central
Electricity Regulatory Commission "#erms > Con2itions o1 #ari;* Regulations,
$1!
$ "3* ?or2s an2 expressions use2 in these regulations an2 not 2e=ne2
herein 4ut 2e=ne2 in the (ct shall ha5e the meaning assigne2 to them un2er
the (ct!
$! Scope an2 extent o1 application7 "1* ?here tari; has 4een 2etermine2
through transparent process o1 4i22ing in accor2ance with the gui2elines issue2
4y the Central @o5ernment, the Commission shall a2opt such tari; in
accor2ance with the pro5isions o1 the (ct!
"$* #hese regulations shall apply in all other cases where tari; is to 4e
2etermine2 4y the Commission 4ase2 on capital cost!
9ro5i2e2 that the Commission may prescri4e the relaxe2 norms o1
operation, inclu2ing the norms o1 target a5aila4ility an2 9lant +oa2 Factor
1)2
containe2 in these regulations 1or a generating station the tari; o1 which is not
2etermine2 in accor2ance with the Central Electricity Regulatory Commission
"#erms an2 Con2itions o1 #ari;* Regulations, $1, an2 the relaxe2 norms shall
4e applica4le 1or 2etermination o1 tari; 1or such a generating station!
1 Norms o1 operation to 4e ceiling norms7 For remo5al o1 2ou4ts, it is
clari=e2 that the norms o1 operation speci=e2 un2er these regulations are the
ceiling norms an2 this shall not preclu2e the generating company or the
transmission licensee, as the case may 4e, an2 the 4ene=ciaries 1rom agreeing
to impro5e2 norms o1 operation an2 in case the impro5e2 norms are agree2 to,
such impro5e2 norms shall 4e applica4le 1or 2etermination o1 tari;!
$ #ari; 2etermination7 "1* #ari; in respect o1 a generating station un2er
these regulations shall 4e 2etermine2 stage,wise, unit,wise or 1or the whole
generating station an2 tari; 1or the transmission system shall 4e 2etermine2
line,wise, su4,station,wise an2 system,wise, as the case may 4e, an2
aggregate2 to regional tari;!
"$* For the purpose o1 tari;, the capital cost o1 the pro<ect shall 4e 4ro6en up
into stages an2 4y 2istinct units 1orming part o1 the pro<ect! ?here the stage,
wise, unit,wise, line,wise or su4,station,wise 4rea6 up o1 the capital cost o1 the
pro<ect is not a5aila4le an2 in case o1 on,going pro<ects, the common 1acilities
shall 4e apportione2 on the 4asis o1 the installe2 capacity o1 the units an2 lines
or su4,stations! 0n relation to multipurpose hy2ro electric pro<ects, with
irrigation, Aoo2 control an2 power components, the capital cost chargea4le to
the power component o1 the pro<ect only shall 4e consi2ere2 1or 2etermination
o1 tari;!
Explanation
For the purpose o1 this chapter, Bpro<ectB inclu2es a generating station an2
the transmission system!
.! (pplication 1or 2etermination o1 tari;7 "1* #he generating company or the
transmission licensee, as the case may 4e, may ma6e an application 1or =xation
o1 tari; in respect o1 the complete2 units o1 the generating station or the lines
or su4,stations o1 the transmission system!
1 "$* 0n case o1 the existing generating station or the existing transmission
system, the generating company or the transmission licensee, as the case may
4e, shall ma6e an application 1or 2etermination o1 tari; as per (ppen2ix 0 to
these regulations!
1 "3* 0n case o1 a generating station or the transmission system 2eclare2
un2er commercial operation on or a1ter 1!%!$%, an application 1or =xation o1
tari; shall 4e ma2e in two stages, namely7
$ "i* ( generating company or a transmission licensee may ma6e an
application as per (ppen2ix 0 to these regulations, 1or 2etermination o1
pro5isional tari; in a25ance o1 the anticipate2 2ate o1 completion o1 the pro<ect
4ase2 on the capital expen2iture actually incurre2 up to the 2ate o1 ma6ing o1
1)3
the application or a 2ate prior to ma6ing o1 the application, 2uly au2ite2 an2
certi=e2 4y the statutory au2itors, an2 the pro5isional tari; shall 4e charge2
1rom the 2ate o1 commercial operation o1 the respecti5e unit o1 the generating
station or the line or su4,station o1 the transmission systemC
3 "ii* ( generating company or the transmission licensee shall ma6e a 1resh
application as per (ppen2ix 0 to these regulations, 1or 2etermination o1 =nal
tari; 4ase2 on actual capital expen2iture incurre2 up to the 2ate o1 commercial
operation o1 the generating station or the transmission system, 2uly au2ite2
an2 certi=e2 4y the statutory au2itors!
1 Core Dusiness 7 For the purpose o1 these regulations, core 4usiness means
the regulate2 acti5ities o1 generation or transmission o1 electricity an2 2oes not
inclu2e any other 4usiness or acti5ity, li6e consultancy, telecommunication, o1
the generating company or the transmission licensee!
$ #ax on 0ncome7 "1* #ax on the income streams o1 the generating company
or the transmission licensee, as the case may 4e, 1rom its core 4usiness, shall
4e compute2 as an expense an2 shall 4e reco5ere2 1rom the 4ene=ciaries!
"$* (ny un2er,reco5eries or o5er,reco5eries o1 tax on income shall 4e a2<uste2
e5ery year on the 4asis o1 income,tax assessment un2er the 0ncome,#ax (ct,
1'&1, as certi=e2 4y the statutory au2itors!
9ro5i2e2 that tax on any income stream other than the core 4usiness
shall not constitute a pass through component in tari; an2 tax on such other
income shall 4e paya4le 4y the generating company or transmission licensee,
as the case may 4e!
9ro5i2e2 1urther that the generating station,wise pro=t 4e1ore tax in the
case o1 the generating company an2 the region,wise pro=t 4e1ore tax in case o1
the transmission licensee as estimate2 1or a year in a25ance shall constitute
the 4asis 1or 2istri4ution o1 the corporate tax lia4ility to all the generating
stations an2 regions!
9ro5i2e2 1urther that the 4ene=ts o1 tax,holi2ay as applica4le in
accor2ance with the pro5isions o1 the 0ncome,#ax (ct, 1'&1 shall 4e passe2 on
to the 4ene=ciaries!
9ro5i2e2 1urther that in the a4sence o1 any other eEuita4le 4asis the
cre2it 1or carry 1orwar2 losses an2 una4sor4e2 2epreciation shall 4e gi5en in
the proportion as pro5i2e2 in the secon2 pro5iso to this regulation!
9ro5i2e2 1urther that income,tax allocate2 to the thermal generating
station shall 4e charge2 to the 4ene=ciaries in the same proportion as annual
=xe2 charges, the income,tax allocate2 to the hy2ro generating station shall 4e
charge2 to the 4ene=ciaries in the same proportion as annual capacity charges
an2 in case o1 interstate transmission, the sharing o1 income,tax shall 4e in the
same proportion as annual transmission charges!
1)4
3! #ax Escrow /echanism7 "1* #he 4ene=ciaries shall maintain an interest,
4earing tax escrow account in a sche2ule2 4an6, to which all amounts o1
interest shall 4e cre2ite2 !
"$* #he tax lia4ility shall 4e estimate2 two months 4e1ore the
commencement o1 each year an2 intimate2 to the 4ene=ciaries! #he generating
company or the transmission
1 licensee shall en2ea5our to minimiFe its lia4ility on account o1 taxes
reco5era4le 1rom the 4ene=ciaries!
$ "3* #he generating company or the transmission licensee shall 4e
authorise2 to with2raw the amounts 1or settling the income,tax lia4ility on
presentation to the escrow hol2er, a certi=cate 1rom their statutory au2itors
that the amounts are imme2iately 2ue an2 paya4le to the taxing authority!
3 "%* #he generating company or the transmission licensee shall pay into
the tax escrow account any re1un2 recei5e2 1rom the taxing authority!
% ".* #he re1un2s, i1 any, shall not 4e pai2 4ac6 to the 4ene=ciaries an2
shall 4e a2<uste2 in the escrow account! (ny 4alance 2ue or returna4le shall 4e
rolle2 o5er to the next year!
. "&* #he escrow accounts shall 4e reAecte2 in the 4oo6s o1 accounts o1 the
4ene=ciaries as their 4an6 account!
1 Extra Rupee +ia4ility7 "1* Extra rupee lia4ility towar2s interest payment
an2 loan repayment correspon2ing to the normati5e 1oreign 2e4t or actual
1oreign 2e4t, as the case may 4e, in the rele5ant year shall 4e permissi4le
pro5i2e2 it 2irectly arises out o1 Foreign Exchange Rate Gariation an2 is not
attri4uta4le to the generating company or the transmission licensee or its
suppliers or contractors! E5ery generating company an2 the transmission
licensee shall reco5er Foreign Exchange Rate Gariation on a year to year 4asis
as income or expense in the perio2 in which it arises an2 Foreign Exchange
Rate Gariation shall 4e a2<uste2 on a year to year 4asis!
1 1! Reco5ery o1 0ncome,tax an2 Foreign Exchange Rate Gariation7
Reco5ery o1 0ncome,tax an2 Foreign Exchange Rate Gariation shall 4e 2one
2irectly 4y the generating company or the transmission licensee, as the case
may 4e, 1rom the 4ene=ciaries without ma6ing any application 4e1ore the
Commission!
$ 9ro5i2e2 that in case o1 any o4<ections 4y the 4ene=ciaries to the
amounts claime2 on account o1 income,tax or Foreign Exchange Rate Gariation,
the generating company or the transmission licensee, as the case may 4e, may
ma6e an appropriate application 4e1ore the Commission 1or its 2ecision!
3 11! De5iation 1rom norms7 "1* #ari; 1or sale o1 electricity 4y a generating
company may also 4e 2etermine2 in 2e5iation o1 the norms speci=e2 in these
regulations su4<ect to the con2itions that7
% "a* #he o5erall per unit tari; o1 electricity o5er the entire li1e o1 the asset,
calculate2 on the 4asis o1 the norms in 2e5iation 2oes not excee2 the per unit
tari; calculate2 on the 4asis o1 the norms speci=e2 in these regulationsC an2
. "4* (ny such 2e5iation shall come into e;ect only a1ter appro5al 4y the
Commission!
1)5
"$* 0n case o1 the existing generating stations, #9S,0 an2 #9S,00 "Stage 0 >
00* o1 Ney5eli +ignite Corporation +t2, whose tari; was initially 2etermine2 4y
1ollowing Net Fixe2 (ssets approach 4ase2 on mutual agreement 4etween
Ney5eli +ignite Corporation +t2 an2 the 4ene=ciaries, tari; shall continue to 4e
2etermine2 4y a2opting Net Fixe2 (ssets approach!
1 9ower to Remo5e DiHculties7 01 any 2iHculty arises in gi5ing e;ect to
these regulations, the Commission may, o1 its own motion or otherwise, 4y an
or2er an2 a1ter gi5ing a reasona4le opportunity to those li6ely to 4e a;ecte2 4y
such or2er, ma6e such pro5isions, not inconsistent with these regulations, as
may appear to 4e necessary 1or remo5ing the 2iHculty!
$ 9ower to Relax7 #he Commission, 1or reasons to 4e recor2e2 in writing,
may 5ary any o1 the pro5isions o1 these regulations on its own motion or on an
application ma2e 4e1ore it 4y an intereste2 person!
C8(9#ER $
#8ER/(+ 9I?ER @ENER(#0N@ S#(#0INS
1%! De=nitions7 Jnless the context otherwise reEuires, 1or the purpose o1 this
chapter, 7
1 "i* K(ctL means the Electricity (ct, $3C
$ "ii* M(22itional CapitalisationB means the capital expen2iture actually
incurre2 a1ter the 2ate o1 commercial operation o1 the generating station an2
a2mitte2 4y the Commission a1ter pru2ence chec6 su4<ect to pro5isions o1
regulation 13C
"iii* K(uthority B means Central Electricity (uthority re1erre2 to in Section
7 o1 the (ctC
1 "i5* B(uxiliary Energy ConsumptionB or B(J)B in relation to a perio2 means
the Euantum o1 energy consume2 4y auxiliary eEuipment o1 the generating
station an2 trans1ormer losses within the generating station, an2 shall 4e
expresse2 as a percentage o1 the sum o1 gross energy generate2 at the
generator terminals o1 all the units o1 the generating stationC
$ "5* B(5aila4ilityB in relation to a thermal generating station 1or any perio2
means the a5erage o1 the 2aily a5erage 2eclare2 capacities "DCs* 1or all the
2ays 2uring that perio2 expresse2 as a percentage o1 the installe2 capacity o1
the generating station minus normati5e auxiliary consumption in /?, an2 shall
4e compute2 in accor2ance with the 1ollowing 1ormula7
N
1)"
(5aila4ility N 1 x O DCi- P N x 0C x "1,(J)n* QR iN1
where,
0C N 0nstalle2 Capacity o1 the generating station in /?,
DCi N (5erage 2eclare2 capacity 1or the i
th
2ay o1 the perio2 in /?,
N N Num4er o1 2ays 2uring the perio2, an2
(J)n N Normati5e (uxiliary Energy Consumption as a percentage o1 gross
generationC
"5i* KDene=ciaryL in relation to a generating station means the person 4uying
power generate2 at such a generating station on payment o1 (nnual Fixe2
ChargesC
"5ii* KDloc6L in relation to a com4ine2 cycle thermal generating station inclu2es
com4ustion tur4ine generator"s*, associate2 waste heat reco5ery 4oiler"s*,
connecte2 steam tur4ine generator an2 auxiliariesC
"5iii* BCommissionB means the Central Electricity Regulatory Commission re1erre2 to
in Section 7& o1 the (ctC
1 "ix* KCut o; DateL means the 2ate o1 =rst =nancial year closing a1ter one year
o1 the 2ate o1 commercial operation o1 the generating stationC
$ "x* KDate o1 Commercial IperationL or KCIDL in relation to a unit means the
2ate 2eclare2 4y the generator a1ter 2emonstrating the /aximum Continuous Rating
"/CR* or 0nstalle2 Capacity "0C* through a success1ul trial run a1ter notice to the
4ene=ciaries an2 in relation to the generating station the 2ate o1 commercial
operation means the 2ate o1 commercial operation o1 the last unit or 4loc6 o1 the
generating stationC
3 "xi* KDeclare2 CapacityL or KDCB means the capa4ility o1 the generating station
to 2eli5er ex,4us electricity in /? 2eclare2 4y such generating station in relation to
any perio2 o1 the 2ay or whole o1 the 2ay, 2uly ta6ing into account the a5aila4ility o1
1uelC
Note
0n case o1 a gas tur4ine generating station or a com4ine2 cycle generating
station, the generating station shall 2eclare the capacity 1or units an2
mo2ules on gas 1uel an2 liEui2 1uel separately, an2 these shall 4e sche2ule2
separately! #otal 2eclare2 capacity an2 total sche2ule2 generation 1or the
generating station shall 4e the sum o1 the 2eclare2 capacity an2 sche2ule2
generation 1or gas 1uel an2 liEui2 1uel 1or the purpose o1 computation o1
1))
a5aila4ility an2 9lant +oa2 Factor respecti5ely!
"xii* MExisting @enerating StationB means a generating station 2eclare2 un2er
commercial operation 1rom a 2ate prior to 1!%!$%C
"xiii* K@ross Calori=c GalueL or K@CGL in relation to a thermal power generating
station means the heat pro2uce2 in 6Cal 4y complete com4ustion o1 one
6ilogram o1 soli2 1uel or one litre o1 liEui2 1uel or one stan2ar2 cu4ic meter o1
gaseous 1uel, as the case may 4eC
"xi5* K@ross Station 8eat RateL or K@8RL means the heat energy input in 6Cal
reEuire2 to generate one 6?h o1 electrical energy at generator terminalsC
"x5* K0n=rm 9owerL means electricity generate2 prior to commercial operation
o1 the unit o1 a generating stationC
"x5i* K0nstalle2 CapacityB or B0CL means the summation o1 the name plate
capacities o1 all the units o1 the generating station or the capacity o1 the
generating station "rec6one2 at the generator terminals* as appro5e2 4y the
Commission 1rom time to timeC
"x5ii* K/aximum Continuous RatingB or M/CRL in relation to a unit o1 the
thermal power generating station means the maximum continuous
output at the generator terminals, guarantee2 4y the manu1acturer at
rate2 parameters, an2 in relation to a unit or 4loc6 o1 a com4ine2 cycle
thermal power generating station means the maximum continuous
output at the generator terminals, guarantee2 4y the manu1acturer with
water-steam in<ection "i1 applica4le* an2 correcte2 to . 8F gri2
1reEuency an2 speci=e2 site con2itionsC
"x5iii* BIperation an2 /aintenance ExpensesL or KI>/ ExpensesB means
the expen2iture incurre2 on operation an2 maintenance o1 the
generating station, inclu2ing part thereo1, an2 inclu2es the expen2iture
on manpower, repairs, spares, consuma4les, insurance an2 o5erhea2sC
"xix* MIriginal 9ro<ect CostB means the actual expen2iture incurre2 4y
the generating company, as per the original scope o1 the pro<ect up to
the =rst =nancial year closing a1ter one year o1 the 2ate o1 commercial
operation o1 the last unit as a2mitte2 4y the Commission 1or
2etermination o1 tari;C
"xx* B9lant +oa2 FactorB or B9+FB 1or a gi5en perio2, means the total sent
out energy correspon2ing to sche2ule2 generation 2uring the perio2,
expresse2 as a percentage o1 sent out energy correspon2ing to installe2
capacity in that perio2 an2 shall 4e compute2 in accor2ance with the
1ollowing 1ormula7
1)*
N
9+F N 1 x O S@i- PN x 0C x "1,(J)n* QR iN1
where,
0C N 0nstalle2 Capacity o1 the generating station in /?,
S@i N Sche2ule2 @eneration in /? 1or the i
th
time 4loc6 o1 the perio2,
N N Num4er o1 time 4loc6s 2uring the perio2, an2
(J)n N Normati5e (uxiliary Energy Consumption as a percentage o1 gross
generationC
"xxi* K9ro<ectL means a generating stationC
"xxii* MSche2ule2 @enerationL or KS@B at any time or 1or any perio2 or
time 4loc6 means sche2ule o1 generation in /? ex,4us gi5en 4y the
Regional +oa2 Despatch CentreC
Note
For the gas tur4ine generating station or a com4ine2 cycle generating
station i1 the a5erage 1reEuency 1or any time 4loc6, is 4elow %'!.$ 8F
4ut not 4elow %'!$ 8F an2 the sche2ule2 generation is more than
'3!.R o1 the 2eclare2 capacity, the sche2ule2 generation shall 4e
2eeme2 to ha5e 4een re2uce2 to '3!.R o1 the 2eclare2 capacity, an2 i1
the a5erage 1reEuency 1or any time 4loc6 is 4elow %'!$ 8F an2 the
sche2ule2 generation is more than '&!.R o1 the 2eclare2 capacity, the
sche2ule2 generation shall 4e 2eeme2 to ha5e 4een re2uce2 to '&!.R
o1 the 2eclare2 capacity!
"xxiii* MSmall @as #ur4ine 9ower @enerating StationB means an2 inclu2es
gas tur4ine-com4ine2 cycle generating stations with gas tur4ines in the
capacity range o1 . /? or 4elowC
"xxi5* BJnitB in relation to a thermal power generating station means
steam generator, tur4ine,generator an2 auxiliaries, or in relation to a
com4ine2 cycle thermal power generating station, means tur4ine,
generator an2 auxiliariesC an2
"xx5* K:earL means a =nancial year!
1.! Components o1 #ari;7 "1* #ari; 1or sale o1 electricity 1rom a thermal power
generating station shall comprise o1 two parts, namely, the reco5ery o1 annual
capacity "=xe2* charges an2 energy "5aria4le* charges!
1),
1 "$* #he annual capacity "=xe2* charges shall consist o17
$ "a* 0nterest on loan capitalC
3 "4* Depreciation, inclu2ing (25ance (gainst DepreciationC
% "c* Return on eEuityC
. "2* Iperation an2 maintenance expensesC an2
& "e* 0nterest on wor6ing capital!
$ "3* #he energy "5aria4le* charges shall co5er 1uel cost!
1&! Norms o1 Iperation7 #he norms o1 operation as gi5en hereun2er shall
apply7
"i* #arget (5aila4ility 1or reco5ery o1 1ull Capacity "Fixe2* charges
1 "a* (ll thermal power generating stations, except those co5ere2 un2er
clauses "4* an2 "c* 4elow , 3R
$ "4* #hermal power generating stations o1 Ney5eli +ignite Corporation +t2 "#9S,0,
#9S,00, Stage 0>00 an2 #9S,0 Expansion* an2 #alchar #hermal 9ower Station o1 National
#hermal 9ower Corporation +t2! , 7.R
"c * #an2a #hermal 9ower Station o1 National #hermal 9ower Corporation
+t2! , &R
Note
Reco5ery o1 capacity "=xe2* charges 4elow the le5el o1 target a5aila4ility
shall 4e on pro rata 4asis! (t Fero a5aila4ility, no capacity charges shall
4e paya4le!
"ii* #arget 9lant +oa2 Factor 1or 0ncenti5e
1 "a* (ll thermal power generating stations, except those co5ere2
un2er clauses "4* an2 "c* 4elow , 3R
$ "4* #hermal power generating stations o1 Ney5eli +ignite Corporation
+t2 "#9S,0, #9S,00, Stage 0>00 an2 #9S 0 Expansion* an2 #alcher #hermal 9ower
Station o1 National #hermal 9ower Corporation +t2! , 7.R
3 "c* #an2a #hermal 9ower Station o1 National #hermal 9ower
Corporation +t2! ,&R
"iii* @ross Station 8eat Rate
"a* Coal,4ase2 thermal power generating stations, other than
those co5ere2 un2er clauses "4* an2 "c* 4elow
$-$1-$. /? sets . /? an2 a4o5e sets
1*.
During sta4iliFation perio2 $& SCal-6?h $.. SCal-6?h
Su4seEuent perio2 $. SCal-6?h $%. SCal-6?h
Note 1
0n respect o1 . /? an2 a4o5e units where the 4oiler 1ee2 pumps
are electrically operate2, the gross station heat rate shall 4e %
6Cal-6?h lower than the station heat rate in2icate2 a4o5e!
Note $
For generating stations ha5ing com4ination o1 $-$1-$. /? sets
an2 . /? an2 a4o5e sets, the normati5e gross station heat rate
shall 4e the weighte2 a5erage station heat rate!
1 "4* #alcher #hermal 9ower Station 31 6Cal-6?h
$ "c* #an2a #hermal 9ower Station 3 6Cal-6?h
1 "2* +ignite,=re2 thermal power generating stations
$ "1* For lignite,=re2 generating stations except 1or #9S,0 an2 #9S,00
"Stage 0 > 00* o1 Ney5eli +ignite Corporation +t2, the gross station heat
rates speci=e2 un2er clause "a* a4o5e 1or coal,4ase2 thermal power
generating stations shall 4e correcte2, using multiplying 1actors as gi5en
4elow7
3 "i* For lignite ha5ing .R moisture7 /ultiplying 1actor o1 1!1
% "ii* For lignite ha5ing %R moisture7 /ultiplying 1actor o1 1!7
. "iii* For lignite ha5ing 3R moisture7 /ultiplying 1actor o1 1!%
& "i5* For other 5alues o1 moisture content, multiplying 1actor shall
4e pro,rate2 1or moisture content 4etween 3,% an2 %,. 2epen2ing
upon the rate2 5alues o1 multiplying 1actor 1or the respecti5e range gi5en
un2er su4,clauses "i* to "iii* a4o5e!
7 "$* #9S,0 an2 #9S,00 "Stage 0 > 00* o1 Ne5eli +ignite Corporation +t2
#9S,0 3' 6Cal-6?h #9S,00 $3. 6Cal-6?h
"e* @as #ur4ine-Com4ine2 Cycle generating stations
1 "i* Existing generating stations owne2 4y National #hermal
9ower Corporation +t2
$ "ii* @enerating stations 2eclare2 un2er commercial operation on or
a1ter 1!%!$%
Name o1
@enerating station
Com4ine2
cycle
"6Cal-6?h*
Ipen cycle
"6Cal-6?h*
@an2har @9S $ $'
1*1
Sawas @9S $7. 31
(nta @9S $7. 31
Da2ri @9S $7. 31
(uraiya @9S $1 3%.
Fari2a4a2 @9S $ $'
Sayam6ulam @9S $ $'
(25ance2 Class E-E(-EC-E$ Class /achines
/achines
Ipen cycle ,$&3. 6Cal-6?h $33 6Cal-6?h Com4ine2
cycle ,13. 6Cal-6?h 1'. 6Cal-6?h
"iii* Small @as #ur4ine 9ower @enerating Stations7
"a* (ssam @as Dase2 9ower Station, Sathalguri7
1 Ipen Cycle ,,3$$. 6Cal-6?h Com4ine2 Cycle ,,$$. 6Cal-6?h
$ "4* (gartala @as Dase2 9ower Station, Ramachan2ranagar7 Ipen
Cycle ,,3.3 6Cal-6?h
3 "c* Ither than "a* an2 "4* a4o5e7
?ith Natural @as ?ith +iEui2 Fuel
Ipen Cycle 31$. 6Cal-6?h 1!$ x 31$. 6Cal-6?h
Com4ine2 Cycle $3 6Cal-6?h 1!$ x $3 6Cal-6?h
"i5* Secon2ary 1uel oil consumption
"a* Coal,4ase2 generating stations7
"i* (ll coal,4ase2 thermal power generating
stations except those co5ere2 un2er su4,clauses "ii* an2 "iii*
4elow
During Sta4iliFation perio2 Su4seEuent perio2
%!. ml-6?h $! ml-6?h "ii*#alcher #hermal 9ower
Station 3!. ml-6?h
"iii* #an2a #hermal 9ower Station 3!. ml-6?h
1*2
"4* +ignite,=re2 generating stations7
During Sta4iliFation perio2 Su4seEuent perio2
.! ml-6?h 3! ml-6?h
"5* (uxiliary Energy Consumption
"a* Coal,4ase2 generating stations7
?ith cooling ?ithout
cooling tower tower
1 "i* $ /? series '!R 3!.R
$ "ii* . /? series Steam 2ri5en 4oiler 1ee2 pumps 7!.R 7!R
Electrically 2ri5en 4oiler 1ee2 pumps '!R 3!.R
"iii* #alcher #hermal 9ower Station 11!R
"i5* #an2a #hermal 9ower Station 11!R
1 "4* @as #ur4ine-Com4ine2 Cycle generating stations7
$ "i* Com4ine2 cycle 3!R
3 "ii* Ipen cycle 1!R
$ "c* +ignite,=re2 thermal power generating stations7
"i* (ll generating stations, except #9S,0 an2 #9S,00 "Stage 0
> 00* o1 Ney5eli +ignite Corporation +t27
#he auxiliary energy consumption norms shall 4e !.
percentage point more than the a4o5e auxiliary energy
consumption norms o1 coal,4ase2 generating stations at
"5*
"a* "i* > "ii* a4o5e!
"ii* #9S,0 > #9S,00 Stage,0>00 o1 Ney5eli +ignite Corporation
+t2!7
#9S,0 1$!R #9S,00 1!R
Note
1*3
During sta4iliFation perio2, normati5e auxiliary consumption shall 4e
rec6one2 at !. percentage point more than the norms in2icate2 at "a*,
"4* an2 "c* a4o5e!
"5i* Sta4iliFation perio2
0n relation to a unit, sta4iliFation perio2 shall 4e rec6one2
commencing 1rom the 2ate o1 commercial operation o1 that unit as
1ollows, namely7
1 "a* Coal,4ase2 an2 lignite,=re2 generating stations ,13 2ays
$ "4* @as tur4ine-com4ine2 cycle generating stations ,' 2ays
Note
#he sta4iliFation perio2 an2 relaxe2 norms applica4le 2uring the sta4iliFation
perio2 shall cease to apply 1rom 1!%!$&!
17! Capital Cost7 Su4<ect to pru2ence chec6 4y the Commission, the actual
expen2iture incurre2 on completion o1 the pro<ect shall 1orm the 4asis 1or
2etermination o1 =nal tari;! #he =nal tari; shall 4e 2etermine2 4ase2 on the
a2mitte2 capital expen2iture actually incurre2 up to the 2ate o1 commercial
operation o1 the generating station an2 shall inclu2e capitalise2 initial spares
su4<ect to 1ollowing ceiling norms as a percentage o1 the original pro<ect cost as on
the cut o; 2ate7
1 "i* Coal,4ase2-lignite,=re2 generating stations ,$!.R
$ "ii* @as #ur4ine-Com4ine2 Cycle generating stations ,%!R
9ro5i2e2 that where the power purchase agreement entere2 into 4etween the
generating company an2 the 4ene=ciaries pro5i2es a ceiling o1 actual expen2iture,
the capital expen2iture shall not excee2 such ceiling 1or 2etermination o1 tari;C
9ro5i2e2 1urther that in case o1 the existing generating stations, the capital
cost a2mitte2 4y the Commission prior to 1!%!$% shall 1orm the 4asis 1or
2etermination o1 tari;!
Note
Scrutiny o1 the pro<ect cost estimates 4y the Commission shall 4e limite2 to
the reasona4leness o1 the capital cost, =nancing plan, interest 2uring construction,
use o1 eHcient technology, an2 such other matters 1or 2etermination o1 tari;!
1*4
13! (22itional capitalisation7 "1* #he 1ollowing capital expen2iture within the original
scope o1 wor6 actually incurre2 a1ter the 2ate o1 commercial operation an2 up to the
cut o; 2ate may 4e a2mitte2 4y the Commission, su4<ect to pru2ence chec67
1 "i* De1erre2 lia4ilitiesC
$ "ii* ?or6s 2e1erre2 1or executionC
"iii* 9rocurement o1 initial capital spares in the original scope o1 wor6, su4<ect
to ceiling speci=e2 in regulation 17C
1 "i5* +ia4ilities to meet awar2 o1 ar4itration or 1or compliance o1 the or2er or
2ecree o1 a courtC an2
$ "5* In account o1 change in law!
9ro5i2e2 that original scope o1 wor6 along with estimates o1 expen2iture
shall 4e su4mitte2 along with the application 1or pro5isional tari;!
9ro5i2e2 1urther that a list o1 the 2e1erre2 lia4ilities an2 wor6s 2e1erre2
1or
execution shall 4e su4mitte2 along with the application 1or =nal tari; a1ter the
2ate
o1 commercial operation o1 the generating station!
1 "$* Su4<ect to the pro5isions o1 clause "3* o1 this regulation, the capital
expen2iture o1 the 1ollowing nature actually incurre2 a1ter the cut o; 2ate may 4e
a2mitte2 4y the Commission, su4<ect to pru2ence chec67
$ "i* De1erre2 lia4ilities relating to wor6s-ser5ices within the original scope o1
wor6C
3 "ii* +ia4ilities to meet awar2 o1 ar4itration or 1or compliance o1 the or2er or
2ecree o1 a courtC
% "iii* In account o1 change in lawC
. "i5* (ny a22itional wor6s-ser5ices which ha5e 4ecome necessary 1or
eHcient an2 success1ul operation o1 the generating station, 4ut not inclu2e2 in the
original pro<ect costC an2
& "5* De1erre2 wor6s relating to ash pon2 or ash han2ling system in the
original scope o1 wor6!
$ "3* (ny expen2iture on minor items-assets li6e normal tools an2 tac6les,
personal computers, 1urniture, air,con2itioners, 5oltage sta4iliFers, re1rigerators,
1ans, coolers, #G, washing machines, heat,con5ectors, carpets, mattresses etc!
4rought a1ter the cut o; 2ate shall not 4e consi2ere2 1or a22itional capitalisation 1or
2etermination o1 tari; with e;ect 1rom 1!%!$%!
Note
#he list o1 items is illustrati5e an2 not exhausti5e!
"%* 0mpact o1 a22itional capitalisation in tari; re5ision may 4e consi2ere2 4y the
1*5
Commission twice in a tari; perio2, inclu2ing re5ision o1 tari; a1ter the cut o; 2ate!
Note 1
(ny expen2iture a2mitte2 on account o1 committe2 lia4ilities within the
original scope o1 wor6 an2 the expen2iture 2e1erre2 on techno,economic groun2s
4ut 1alling within the original scope o1 wor6 shall 4e ser5ice2 in the normati5e 2e4t,
eEuity ratio speci=e2 in regulation $!
Note $
(ny expen2iture on replacement o1 ol2 assets shall 4e consi2ere2 a1ter
writing o; the gross 5alue o1 the original assets 1rom the original pro<ect cost,
except such items as are liste2 in clause "3* o1 this regulation!
Note 3
(ny expen2iture a2mitte2 4y the Commission 1or 2etermination o1 tari; on
account o1 new wor6s not in the original scope o1 wor6 shall 4e ser5ice2 in the
normati5e 2e4t,eEuity ratio speci=e2 in regulation $!
Note %
(ny expen2iture a2mitte2 4y the Commission 1or 2etermination o1 tari; on
reno5ation an2 mo2erniFation an2 li1e extension shall 4e ser5ice2 on normati5e
2e4t,eEuity ratio speci=e2 in regulation $ a1ter writing o; the original amount o1
the replace2 assets 1rom the original pro<ect cost!
1 Sale o1 0n=rm 9ower7 (ny re5enue "other than the reco5ery o1 1uel cost*
earne2 4y the generating company 1rom sale o1 in=rm power, shall 4e ta6en as
re2uction in capital cost an2 shall not 4e treate2 as re5enue!
$ De4t,EEuity Ratio7 "1* 0n case o1 all generating stations, 2e4teEuity ratio as
on the 2ate o1 commercial operation shall 4e 773 1or 2etermination o1 tari;!
?here eEuity employe2 is more than 3R, the amount o1 eEuity 1or 2etermination
o1 tari; shall 4e limite2 to 3R an2 the 4alance amount shall 4e consi2ere2 as the
normati5e loan!
9ro5i2e2 that in case o1 a generating station where actual eEuity employe2 is
less than 3R, the actual 2e4t an2 eEuity shall 4e consi2ere2 1or 2etermination o1
tari;!
"$* #he 2e4t an2 eEuity amount arri5e2 at in accor2ance with clause "1* shall 4e
use2 1or calculating interest on loan, return on eEuity, (25ance (gainst Depreciation
an2 Foreign Exchange Rate Gariation!
1*"
$1! Computation o1 Capacity "Fixe2* Charges7 "1* #he capacity charges shall 4e
compute2 on the 1ollowing 4asis an2 their reco5ery shall 4e relate2 to target
a5aila4ility!
"i* 0nterest on loan capital
1 "a* 0nterest on loan capital shall 4e compute2 loan wise on the loans arri5e2
at in the manner in2icate2 in regulation $!
$ "4* #he loan outstan2ing as on 1!%!$% shall 4e wor6e2 out as the gross loan
as per regulation $ minus cumulati5e repayment as a2mitte2 4y the Commission
up to 31!3!$%! #he repayment 1or the perio2 $%,' shall 4e wor6e2 out on a
normati5e 4asis!
3 "c* #he generating company shall ma6e e5ery e;ort to swap the loan as long
as it results in net 4ene=t to the 4ene=ciaries! #he costs associate2 with such
swapping shall 4e 4orne 4y the 4ene=ciaries!
% "2* #he changes to the loan terms an2 con2itions shall 4e reAecte2 1rom the
2ate o1 such swapping an2 4ene=t passe2 on to the 4ene=ciaries!
. "e* 0n case o1 any 2ispute, any o1 the parties may approach the Commission
with proper application! 8owe5er, the 4ene=ciaries shall not withhol2 any payment
as or2ere2 4y the Commission to the generating company 2uring pen2ency o1 any
2ispute relating to swapping o1 loan!
& "1* 0n case any moratorium perio2 is a5aile2 o1 4y the generating company,
2epreciation pro5i2e2 1or in the tari; 2uring the years o1 moratorium shall 4e
treate2 as repayment 2uring those years an2 interest on loan capital shall 4e
calculate2 accor2ingly!
7 "g* #he generating company shall not ma6e any pro=t on account o1 swapping
o1 loan an2 interest on loan!
"ii* Depreciation, inclu2ing (25ance (gainst Depreciation
"a* Depreciation
For the purpose o1 tari;, 2epreciation shall 4e compute2 in the
1ollowing manner, namely7
1 "i* #he 5alue 4ase 1or the purpose o1 2epreciation shall 4e the historical cost o1
the assetC
$ "ii* Depreciation shall 4e calculate2 annually, 4ase2 on straight line metho2
o5er the use1ul li1e o1 the asset an2 at the rates prescri4e2 in (ppen2ix 00 to these
regulations!
#he resi2ual li1e o1 the asset shall 4e consi2ere2 as 1R an2 2epreciation shall
4e allowe2 up to maximum o1 'R o1 the historical capital cost o1 the asset! +an2 is
1*)
not a 2eprecia4le asset an2 its cost shall 4e exclu2e2 1rom the capital cost while
computing 'R o1 the historical cost o1 the asset! #he historical capital cost o1 the
asset shall inclu2e a22itional capitalisation on account o1 Foreign Exchange Rate
Gariation up to 31!3!$% alrea2y allowe2 4y the Central @o5ernment -Commission!
"iii* In repayment o1 entire loan, the remaining 2eprecia4le 5alue
shall 4e sprea2 o5er the 4alance use1ul li1e o1 the asset!
"i5* Depreciation shall 4e chargea4le 1rom the =rst year o1
operation! 0n case o1 operation o1 the asset 1or part o1 the year,
2epreciation shall 4e charge2 on pro rata 4asis!
"4* (25ance (gainst Depreciation
0n a22ition to allowa4le 2epreciation, the generating
company shall 4e entitle2 to (25ance (gainst Depreciation,
compute2 in the manner gi5en hereun2er7
((D N +oan repayment amount as per regulation $1 "i*
su4<ect to a ceiling o1 1-1
th
o1 loan amount as per
regulation $ minus 2epreciation as per sche2ule
9ro5i2e2 that (25ance (gainst Depreciation shall 4e
permitte2 only i1 the cumulati5e repayment up to a
particular
year excee2s the cumulati5e 2epreciation up to that yearC
9ro5i2e2 1urther that (25ance (gainst Depreciation in
a year shall 4e restricte2 to the extent o1 2i;erence 4etween
cumulati5e repayment an2 cumulati5e 2epreciation up to
that year!
"iii* Return on
EEuity 7
Return on eEuity shall
4e compute2 on the
eEuity 4ase
2etermine2 in
accor2ance with
regulation $ T 1%R
per
an
nu
m!
9ro5i2e2 that eEuity in5este2
1**
in 1oreign
currency shall
4e allowe2 a
return up to the
prescri4e2 limit
in the same currency an2 the
payment on this account shall 4e
ma2e in 0n2ian Rupees 4ase2 on
the exchange rate pre5ailing on
the 2ue 2ate o1 4illing!
Explanation
#he premium raise2 4y the generating company while issuing share
capital an2 in5estment o1 internal resources create2 out o1 1ree reser5e o1 the
generating company, i1 any, 1or the 1un2ing o1 the pro<ect, shall also 4e
rec6one2 as pai2 up capital 1or the purpose o1 computing return on eEuity,
pro5i2e2 such premium amount an2 internal resources are actually utilise2 1or
meeting the capital expen2iture o1 the generating station an2 1orms part o1
the appro5e2 =nancial pac6age!
"i5* Iperation an2 /aintenance expenses
Normati5e operation an2 maintenance expenses shall 4e as 1ollows,
namely7
"a* Coal,4ase2 generating stations except #alcher #hermal
9ower Station an2 #an2a #hermal 9ower Station o1 National
#hermal 9ower Corporation +t2
"Rs! in la6h-/?*
:ear $-$1-$. /? sets . /? an2 a4o5e sets
$%,. 1!% '!3&
$.,& 1!3$ '!73
$&,7 11!$. 1!1$
$7,3 11!7 1!.$
$3,' 1$!17 1!'.
1*,
Note
For the generating stations ha5ing com4ination o1 $-$1-$. /? sets
an2 . /? an2 a4o5e set, the weighte2 a5erage 5alue 1or operation an2
maintenance expenses shall 4e a2opte2!
"4* "i* #alcher #hermal 9ower Station
#he 4ase operation an2 maintenance expenses inclu2ing
insurance, 1or the year $,1 shall 4e 2eri5e2 4y a5eraging the
actual operation an2 maintenance expenses 1or the years 1''3,''
to $$,3 4ase2 on the au2ite2 4alance sheets an2 4y exclu2ing
a4normal operation an2 maintenance expenses, i1 any, a1ter a
pru2ence chec6 4y the Commission!
#he a5erage o1 such normalise2 operation an2 maintenance
expenses, a1ter pru2ence chec6, 1or the years 1''3,'' to $$,3
consi2ere2 as operation an2 maintenance expenses 1or the year
$,1 shall 4e escalate2 at the rate o1 %R per annum to arri5e at
operation an2 maintenance expenses 1or the 4ase year $3,%!
#he operation an2 maintenance expenses 1or the 4ase year
$3% shall 4e escalate2 1urther at the rate o1 %R per annum to
arri5e at permissi4le operation an2 maintenance expenses 1or the
rele5ant year o1 tari; perio2!
"ii* #an2a #hermal 9ower Station
#he 4ase operation an2 maintenance expenses inclu2ing
insurance, 1or the year $1,$ shall 4e 2eri5e2 4y a5eraging the
actual operation an2 maintenance expenses 1or the years $,1
to $$,3 4ase2 on the au2ite2 4alance sheets an2 4y exclu2ing
a4normal operation an2 maintenance expenses, i1 any, a1ter a
pru2ence chec6 4y the Commission!
#he a5erage o1 such normalise2 operation an2 maintenance
expenses, a1ter pru2ence chec6, 1or the years $,1 to $$,3
consi2ere2 as operation an2 maintenance expenses 1or the year
$1,$ shall 4e escalate2 at the rate o1 %R per annum to arri5e at
operation an2 maintenance expenses 1or the 4ase year $3,%!
#he operation an2 maintenance expenses 1or the 4ase year $3,%
shall 4e escalate2 1urther at the rate o1 %R per annum to arri5e at
permissi4le operation an2 maintenance expenses 1or the rele5ant
year o1 tari; perio2!
1 "c* @as #ur4ine-Com4ine2 Cycle generating stations "Rs! in
la6h-/?*
"2* +ignite,=re2 generating stations "Rs! in la6h-/?*
1 "5* 0nterest on ?or6ing Capital
$ "a* ?or6ing capital shall co5er7
:ear @as #ur4ine-Com4ine2 Cycle generating
stations other than small gas tur4ine
power generating stations
Small gas
tur4ine power
generating
stations
?ith warranty
spares o1 1 years
?ithout
warranty spares
?ithout
warranty spares
$%,. .!$ 7!3 '!%&
$.,& .!%1 3!11 '!3%
$&,7 .!&$ 3!%% 1!$%
$7,3 .!3. 3!77 1!&.
$3,' &!3 '!1$ 11!7
:ear $-$1-$.
/? series
#9S,0 o1 N+C
$%,. 1!% 1.!$
$.,& 1!3$ 1.!31
$&,7 11!$. 1&!%%
$7,3 11!7 17!1
$3,' 1$!17 17!73
Coal 4ase2-+ignite,=re2 generating stations
1 "i* Cost o1 coal or lignite 1or 1U months 1or pit,hea2 generating
stations an2 two months 1or non,pit,hea2 generating stations,
correspon2ing to the target a5aila4ilityC
$ "ii* Cost o1 secon2ary 1uel oil 1or two months correspon2ing to the
target a5aila4ilityC
"iii* Iperation an2 /aintenance expenses 1or one monthC
1 "i5* /aintenance spares T 1R o1 the historical cost escalate2 T
&R per annum 1rom the 2ate o1 commercial operationC an2
$ "5* Recei5a4les eEui5alent to two months o1 =xe2 an2 5aria4le
charges 1or sale o1 electricity calculate2 on the target a5aila4ility!
@as #ur4ine-Com4ine2 Cycle generating stations
1 "i* Fuel cost 1or one month correspon2ing to the target a5aila4ility
2uly ta6ing into account the mo2e o1 operation o1 the generating station
on gas 1uel an2 liEui2 1uelC
$ "ii* +iEui2 1uel stoc6 1or U monthC
"iii* Iperation an2 maintenance expenses 1or one monthC
1 "i5* /aintenance spares at 1R o1 the historical cost escalate2 T
&R per annum 1rom the 2ate o1 commercial operation C an2
$ "5* Recei5a4les eEui5alent to two months o1 =xe2 an2 5aria4le
charges 1or sale o1 electricity calculate2 on target a5aila4ility!
"4* Rate o1 interest on wor6ing capital shall 4e on normati5e 4asis an2
shall 4e eEual to the short,term 9rime +en2ing Rate o1 State Dan6 o1 0n2ia
as on 1!%!$% or on 1
st
(pril o1 the year in which the generating station or
a unit thereo1 is 2eclare2 un2er commercial operation, whiche5er is later!
0nterest on wor6ing capital shall 4e paya4le on normati5e 4asis
notwithstan2ing that the generating company has not ta6en wor6ing
capital loan 1rom any outsi2e agency!
1 "$* Full capacity charges shall 4e reco5era4le at target a5aila4ility
speci=e2 in regulation 1&! Reco5ery o1 capacity "=xe2* charges 4elow the
le5el o1 target a5aila4ility shall 4e on pro rata 4asis! (t Fero a5aila4ility, no
capacity charges shall 4e paya4le!
$ "3* #he payment o1 capacity charges shall 4e on monthly 4asis in
proportion to the allocate2 capacity!
$$! Energy Charges7
"i* @enerating stations co5ere2 un2er (D#
Energy "5aria4le* Charges shall co5er 1uel costs an2 shall 4e wor6e2
out on the 4asis o1 ex,4us energy sche2ule2 to 4e sent out 1rom the
generating station as per the 1ollowing 1ormula7
Energy Charges "Rs* N Rate o1 Energy Charges in Rs-6?h )
Sche2ule2 Energy "ex,4us* 1or the month in 6?h
correspon2ing to sche2ule2 generation!
"ii* @enerating stations other than those co5ere2 un2er (D#
Energy "5aria4le* charges shall co5er 1uel costs an2 shall 4e wor6e2
out on the
4asis o1 ex,4us energy 2eli5ere2 - sent out 1rom the generating
station as per the
1ollowing 1ormula7
Energy Charges "Rs* N Rate o1 Energy Charges in Rs-6?h )
Energy 2eli5ere2 "ex,4us* 1or the month in 6?h
?here,
Rate o1 Energy Charges "REC* shall 4e the sum o1 the
cost o1 normati5e Euantities o1 primary an2 secon2ary 1uel 1or
2eli5ering ex,4us one 6?h o1 electricity in Rs-6?h an2 shall 4e
compute2 as un2er7
1P9p x "Vp*n W 9s x "Vs*n QREC N "Rs-6?h* "1,"(J)n* *
?here,
9p N 9rice o1 primary 1uel namely coal or lignite or gas or liEui2 1uel in
Rs-Sg or Rs-cum or Rs!-litre, as the case may 4e!
"Vp*n N Vuantity o1 primary 1uel reEuire2 1or generation
o1 one 6?h o1 electricity at generator
terminals in Sg or litre or cum, as the case
may 4e, an2 shall 4e compute2 on the 4asis
o1 normati5e @ross Station 8eat Rate "less
heat contri4ute2 4y secon2ary 1uel oil 1or
coal-lignite 4ase2 generating stations* an2
gross
calori=c 5alue o1 coal-lignite or gas
or liEui2 1uel as =re2! 9s N 9rice o1
Secon2ary 1uel oil in Rs!-ml, "Vs*n N
Normati5e Vuantity o1 Secon2ary
1uel oil in ml-6?h as per clause 1&
"i5*, as the case may 4e, an2
(J)nN Normati5e (uxiliary Energy Consumption as R o1 gross generation
as per clause 1& "5*, as the case may 4e!
"iii* (2<ustment o1 rate o1 energy charge "REC* on account o1
5ariation in price or heat 5alue o1 1uels
0nitially, @ross Calori=c Galue o1 coal-lignite or gas or liEui2 1uel
shall 4e ta6en as per actuals o1 the prece2ing three months! (ny
5ariation shall 4e a2<uste2 on month to month 4asis on the 4asis o1
@ross Calori=c Galue o1 coal-lignite or gas or liEui2 1uel recei5e2 an2
4urnt an2 lan2e2 cost incurre2 4y the generating company 1or
procurement o1 coal-lignite, oil, or gas or liEui2 1uel, as the case may
4e! No separate petition nee2 to 4e =le2 with the Commission 1or
1uel price a2<ustment! 0n case o1 any 2ispute, an appropriate
application in accor2ance with Central Electricity Regulatory
Commission "Con2uct o1 Dusiness Regulations*, 1''', as amen2e2
1rom time to time or any statutory re,enactment thereo1, shall 4e
ma2e 4e1ore the Commission!
"i5* +an2e2 Cost o1 Coal
#he lan2e2 cost o1 coal shall inclu2e price o1 coal correspon2ing to
the gra2e-Euality o1 coal inclusi5e o1 royalty, taxes an2 2uties as
applica4le, transportation cost 4y rail-roa2 or any other means, an2,
1or the purpose o1 computation o1 energy charges, shall 4e arri5e2 at
a1ter consi2ering normati5e transit an2 han2ling losses as
percentage o1 the Euantity o1 coal 2ispatche2 4y the coal supply
company 2uring the month as gi5en 4elow7
9it hea2 generating stations 7 !3R
Non,9it hea2 generating stations 7 !3R
1 0ncenti5e7 0ncenti5e shall 4e paya4le at a Aat rate o1 $.! paise-6?h
1or ex,4us sche2ule2 energy correspon2ing to sche2ule2 generation in
excess o1 ex,4us energy correspon2ing to target 9lant +oa2 Factor!
$ Jnsche2ule2 0nterchange"J0* Charges7 "1* Gariation 4etween actual
generation or actual 2rawal an2 sche2ule2 generation or sche2ule2 2rawal
shall 4e accounte2 1or through Jnsche2ule2 0nterchange "J0* Charges! J0
1or a generating station shall 4e eEual to its actual generation minus its
sche2ule2 generation! J0 1or a 4ene=ciary shall 4e eEual to its total actual
2rawal minus its total sche2ule2 2rawal! J0 shall 4e wor6e2 out 1or each
1. minute time 4loc6! Charges 1or all J0 transactions shall 4e 4ase2 on
a5erage 1reEuency o1 the time 4loc6 an2 the 1ollowing rates shall apply
with e;ect 1rom 1!%!$% 7
(5erage FreEuency o1 time 4loc6 J0 Rate "9aise per 6?h*
.!. 8F an2 a4o5e ! Delow .!. 8F an2 up to .!%3 8F 3! Delow
%'!% 8F an2 up to %'!$ 8F .'$! Delow %'!$ 8F &! Detween
.!. 8F an2 %'!$ 8F linear in !$ 8F step
"Each !$ 8F step is eEui5alent to 3! paise -6?h within the
a4o5e range!*
Note
#he a4o5e a5erage 1reEuency range an2 J0 rates are su4<ect to change
through a separate noti=cation 4y the Commission!
"$* "i* (ny generation up to 1.R o1 the 2eclare2 capacity in any time
4loc6 o1 1. minutes an2 a5eraging up to 11R o1 the a5erage
2eclare2 capacity o5er a 2ay shall not 4e construe2 as gaming, an2
the generator shall 4e entitle2 to J0 charges 1or such excess
generation a4o5e the sche2ule2 generation "S@*!
"ii* For any generation 4eyon2 the prescri4e2 limits, the Regional
+oa2 Despatch Centre shall in5estigate so as to ensure that there is
no gaming, an2 i1 gaming is 1oun2 4y the Regional +oa2 Despatch
Centre, the correspon2ing J0 charges 2ue to the generating station
on account o1 such extra generation shall 4e re2uce2 to Fero an2 the
amount shall 4e a2<uste2 in J0 account o1 4ene=ciaries in the ratio o1
their capacity share in the generating station!
1 Re4ate7 For payment o1 4ills o1 capacity charges an2 energy
charges through a letter o1 cre2it on presentation, a re4ate o1 $R shall 4e
allowe2! 01 the payments are ma2e 4y a mo2e other than through a letter
o1 cre2it 4ut within a perio2 o1 one month o1 presentation o1 4ills 4y the
generating company, a re4ate o1 1R shall 4e allowe2!
$ +ate 9ayment Surcharge7 0n case the payment o1 4ills o1 capacity
charges an2 energy charges 4y the 4ene=ciary "ies* is 2elaye2 4eyon2 a
perio2 o1 1 month 1rom the 2ate o1 4illing, a late payment surcharge at
the rate o1 1!$.R per month shall 4e le5ie2 4y the generating company!
$7! Sche2uling7 Rea2 with the pro5isions o1 the 0n2ian Electricity @ri2
Co2e, the metho2ology o1 sche2uling an2 calculating a5aila4ility
shall 4e as un2er7
"i* #he generator shall ma6e an a25ance 2eclaration o1 capa4ility o1
its generating station! #he 2eclaration shall 4e 1or that capa4ility which
can 4e actually ma2e a5aila4le!
1 #he 2eclaration shall 4e 1or the capa4ility o1 the generating station
to 2eli5er ex,4us /? 1or the next 2ay either as one =gure 1or the whole
2ay or as 2i;erent =gures 1or 2i;erent perio2s o1 the 2ay! #he capa4ility as
2eclare2 4y the generator, also re1erre2 to as the 2eclare2 capacity, shall
1orm the 4asis o1 generation sche2uling!
$ "ii* ?hile ma6ing or re5ising its 2eclaration o1 capa4ility, the
generator shall ensure that the 2eclare2 capa4ility 2uring pea6 hours is
not less than that 2uring other hours! 8owe5er, exception to this rule shall
4e allowe2 in case o1 tripping-re,synchronisation o1 units as a result o1
1orce2 outage o1 units!
"iii* @eneration sche2uling shall 4e 2one in accor2ance with the operating
proce2ure stipulate2 in the 0n2ian Electricity @ri2 Co2e!
1 "i5* Dase2 on the 2eclaration o1 the generator, the Regional +oa2
Despatch Centre shall communicate their shares to the 4ene=ciaries out o1
which they shall gi5e their reEuisitions!
"5* Dase2 on the reEuisitions gi5en 4y the 4ene=ciaries an2 ta6ing
into account technical limitations on 5arying the generation an2 also
ta6ing into account transmission system constraints, i1 any, the Regional
+oa2 Despatch Centre shall prepare the economically optimal generation
sche2ules an2 2rawal sche2ules an2 communicate the same to the
generator an2 the 4ene=ciaries!
1 #he Regional +oa2 Despatch Centre shall also 1ormulate the
proce2ure 1or meeting contingencies 4oth in the long run an2 in the short
run "Daily sche2uling*!
$ "5i* #he sche2ule2 generation an2 actual generation shall 4e ex,4us
at the generating station! For 4ene=ciaries, the sche2ule2 an2 actual net
2rawals shall 4e at their respecti5e recei5ing points!
"5ii* For calculating the net 2rawal sche2ules o1 4ene=ciaries, the
transmission losses shall 4e apportione2 to their 2rawal sche2ules 1or the
time 4eing!
9ro5i2e2 that a re=nement may 4e speci=e2 4y the Commission in 1uture
2epen2ing on the prepare2ness o1 the respecti5e Regional +oa2 Despatch
Centre!
"5iii* 0n case o1 1orce2 outage o1 a unit, the Regional +oa2 Despatch Centre
shall re5ise the sche2ules on the 4asis o1 re5ise2 2eclare2 capa4ility! #he
re5ise2 2eclare2 capa4ility an2 the re5ise2 sche2ules shall 4ecome
e;ecti5e 1rom the %th time 4loc6, counting the time 4loc6 in which the
re5ision is a25ise2 4y the generator to 4e the =rst one!
"ix* 0n the e5ent o1 4ottlenec6 in e5acuation o1 power 2ue to any
constraint, outage, 1ailure or limitation in the transmission system,
associate2 switchyar2 an2 su4, stations owne2 4y the Central
#ransmission Jtility or any other transmission licensee in5ol5e2 in inter,
state transmission "as certi=e2 4y the Regional +oa2 Despatch Centre *
necessitating re2uction in generation, the Regional +oa2 Despatch Centre
shall re5ise the sche2ules which shall 4ecome e;ecti5e 1rom the %th time
4loc6, counting the time 4loc6 in which the 4ottlenec6 in e5acuation o1
power has ta6en place to 4e the =rst one! (lso, 2uring the =rst, secon2
an2 thir2 time 4loc6s o1 such an e5ent, the sche2ule2 generation o1 the
generating
1 station shall 4e 2eeme2 to ha5e 4een re5ise2 to 4e eEual to actual
generation, an2 the sche2ule2 2rawals o1 the 4ene=ciaries shall 4e
2eeme2 to ha5e 4een re5ise2 to 4e eEual to their actual 2rawals!
$ "x* 0n case o1 any gri2 2istur4ance, sche2ule2 generation o1 all the
generating stations an2 sche2ule2 2rawal o1 all the 4ene=ciaries shall 4e
2eeme2 to ha5e 4een re5ise2 to 4e eEual to their actual
generation-2rawal 1or all the time 4loc6s a;ecte2 4y the gri2 2istur4ance!
Certi=cation o1 gri2 2istur4ance an2 its 2uration shall 4e 2one 4y the
Regional +oa2 Despatch Centre!
3 "xi* Re5ision o1 2eclare2 capa4ility 4y the generator"s* an2
reEuisition 4y 4ene=ciary"ies* 1or the remaining perio2 o1 the 2ay shall
also 4e permitte2 with a25ance notice! Re5ise2 sche2ules-2eclare2
capa4ility in such cases shall 4ecome e;ecti5e 1rom the &th time 4loc6,
counting the time 4loc6 in which the reEuest 1or re5ision has 4een
recei5e2 in the Regional +oa2 Despatch Centre to 4e the =rst one!
"xii* 01, at any point o1 time, the Regional +oa2 Despatch Centre
o4ser5es that there is nee2 1or re5ision o1 the sche2ules in the
interest o1 4etter system operation, it may 2o so on its own, an2 in
such cases, the re5ise2 sche2ules shall 4ecome e;ecti5e 1rom the
%th time 4loc6, counting the time 4loc6 in which the re5ise2
sche2ule is issue2 4y the Regional +oa2 Despatch Centre to 4e the
=rst one!
"xiii* @eneration sche2ules an2 2rawal sche2ules issue2-re5ise2 4y
the Regional +oa2 Despatch Centre shall 4ecome e;ecti5e 1rom
2esignate2 time 4loc6 irrespecti5e o1 communication success!
"xi5* For any re5ision o1 sche2ule2 generation, inclu2ing post 1acto
2eeme2 re5ision, there shall 4e a correspon2ing re5ision o1
sche2ule2 2rawals o1 the 4ene=ciaries!
"x5* ( proce2ure 1or recor2ing the communication regar2ing
changes to sche2ules 2uly ta6ing into account the time 1actor shall
4e e5ol5e2 4y the Central #ransmission Jtility!
Note
0n case o1 a generating station, contracting to supply power only to
the State in which it is locate2, the sche2uling, metering an2 energy
accounting shall 4e carrie2 out 4y the respecti5e State +oa2 Despatch
Centre!
$3! Demonstration o1 Declare2 Capa4ility7 "1* #he generating company
may 4e reEuire2 to 2emonstrate the 2eclare2 capa4ility o1 its generating
station as an2 when as6e2 4y the Regional +oa2 Despatch Centre o1 the
region in which the generating station is situate2! 0n the e5ent o1 the
generating company 1ailing to 2emonstrate the 2eclare2 capa4ility, the
capacity charges 2ue to the generator shall 4e re2uce2 as a measure o1
penalty!
1 "$* #he Euantum o1 penalty 1or the =rst mis,2eclaration 1or any
2uration-4loc6 in a 2ay shall 4e the charges correspon2ing to two 2ays
=xe2 charges! For the secon2 mis2eclaration the penalty shall 4e
eEui5alent to =xe2 charges 1or 1our 2ays an2 1or su4seEuent mis,
2eclarations, the penalty shall 4e multiplie2 in the geometrical
progression!
$ "3* #he operating log 4oo6s o1 the generating station shall 4e
a5aila4le 1or re5iew 4y the Regional Electricity Doar2 or Regional 9ower
Committee, as the case may 4e! #hese 4oo6s shall 6eep recor2 o1 machine
operation an2 maintenance!
$'! /etering an2 (ccounting7 /etering arrangements, inclu2ing
installation, testing an2 operation an2 maintenance o1 meters an2
collection, transportation an2 processing o1 2ata reEuire2 1or accounting o1
energy exchanges an2 a5erage 1reEuency on 1. minute time 4loc6 4asis
shall 4e organise2 4y the Central #ransmission Jtility-Regional +oa2
Despatch Centres! (ll concerne2 entities "in whose premises the special
energy meters are installe2*, shall 1ully cooperate with the Central
#ransmission Jtility-Regional +oa2 Despatch Centre an2 exten2 the
necessary assistance 4y ta6ing wee6ly meter rea2ings an2 transmitting
them to the Regional +oa2 Despatch Centre! 9rocesse2 2ata o1 meters
along with 2ata relating to 2eclare2 capa4ility an2 sche2ules etc!, shall 4e
supplie2 4y the Regional +oa2 Despatch Centres to the Regional 9ower
Committee or the Regional Electricity Doar2 an2 the Regional 9ower
Committee or the Regional Electricity Doar2 shall issue the Regional
(ccounts 1or energy on monthly 4asis as well as J0 charges on wee6ly
4asis! J0 accounting proce2ures shall 4e go5erne2 4y the or2ers o1 the
Commission!
Note
0n case o1 a generating station, contracting to supply power only to
the State in
which it is locate2, the sche2uling, metering an2 energy accounting shall
4e carrie2 out
4y the respecti5e State +oa2 Despatch Centre!
3! Dilling an2 9ayment o1 Capacity Charges7 Dilling an2 payment o1
capacity charges shall 4e 2one on a monthly 4asis in the 1ollowing
manner7
"i* Each 4ene=ciary shall pay the capacity charges in proportion to
its percentage share in 0nstalle2 Capacity o1 the generating station!
Note 1
(llocation o1 total capacity o1 central sector generating stations is
ma2e 4y Central @o5ernment 1rom time to time which also has an
unallocate2 portion! (llocation o1 the unallocate2 portion as ma2e
4y the Central @o5ernment 1rom time to time, 1or the total
unallocate2 capacity shall 4e noti=e2 4y the /em4er Secretary,
Regional Electricity Doar2-Regional 9ower Committee in a25ance, at
least 3 2ays prior to such change in allocation ta6ing e;ect! #he
total capacity share o1 any 4ene=ciaries woul2 4e sum o1 its capacity
share plus allocation out o1 the unallocate2 portion! 0n the a4sence
o1 no speci=c 2istri4ution o1 unallocate2 power 4y the Central
@o5ernment, the unallocate2 power shall 4e a22e2 to the allocate2
shares in the same proportion as the allocate2 shares!
Note $
#he 4ene=ciaries may propose surren2ering part o1 their allocate2 share to
other States within-outsi2e the region! 0n such cases, 2epen2ing upon the
technical 1easi4ility o1 power trans1er an2 speci=c agreements reache2 4y
the generating company with other States within-outsi2e the region 1or
such trans1ers, the shares o1 the 4ene=ciaries may 4e re,allocate2 4y the
Central @o5ernment 1or a speci=c perio2! ?hen such re,allocations are
ma2e, the 4ene=ciaries who surren2er the share shall not 4e lia4le to pay
capacity charges 1or the surren2ere2 share! #he capacity charges 1or the
capacity surren2ere2 an2 reallocate2 as a4o5e shall 4e pai2 4y the
State"s* to whom the surren2ere2 capacity is allocate2! Except 1or the
perio2 o1 reallocation o1 capacity as a4o5e, the 4ene=ciaries o1 the
generating station shall continue to pay the 1ull =xe2 charges as per
allocate2 capacity shares! (ny such reallocation shall 4e noti=e2 4y the
/em4er Secretary, Regional Electricity Doar2-Regional 9ower Committee
in a25ance, at least 3 2ays prior to such reallocation ta6ing e;ect!
"ii* #he 4ene=ciaries shall ha5e 1ull 1ree2om 1or negotiating any
transaction 1or utilisation o1 their capacity shares! 0n such cases, the
4ene=ciary ha5ing allocation in the capacity o1 the generating station shall
4e lia4le 1or 1ull payment o1 capacity charges an2 energy charges
"inclu2ing that 1or sale o1 power un2er the transaction negotiate2 4y him*
correspon2ing to his total allocation an2 sche2ule respecti5ely!
"iii* 01 any capacity remains un,reEuisitione2 2uring 2ay,to,2ay operation,
the Regional +oa2 Despatch Centre shall a25ise all 4ene=ciaries in the
region an2 the other Regional +oa2 Despatch Centres so that such
capacity may 4e reEuisitione2 through 4ilateral arrangements either with
the concerne2 generating company or with the concerne2 4ene=ciary"ies*
un2er intimation to the Regional +oa2 Despatch Centre!
#he in1ormation regar2ing un,reEuisitione2 capacity shall also 4e ma2e
a5aila4le 4y the Regional +oa2 Despatch Centres through their respecti5e
we4sites!
"i5* #he capacity charges shall 4e pai2 4y the 4ene=ciary"ies* inclu2ing
those outsi2e the region to the generating company e5ery month in
accor2ance with the 1ollowing 1ormulas7
"a* #otal Capacity charges paya4le to the thermal power generating
company 1or the7
1
st
month N "1x(CC1*-1$
$
n2
month N "$)(CC$ , 1)(CC1*-1$
3
r2
month N "3x(CC3 , $)(CC$*-1$
%
th
month N "%x(CC% , 3x(CC3*-1$ .
th
month N ".)(CC. , %x(CC%*-1$ &
th
month N "&)(CC. ,
.x(CC.*-1$ 7
th
month N "7)(CC7 , &x(CC&*-1$ 3
th
month N "3x(CC3 , 7x(CC7*-1$ '
th
month N
"'x(CC' , 3x(CC3*-1$ 1
th
month N "1x(CC1 'x(CC'*-1$ 11
th
month N "11x(CC11 , 1x(CC1*-1$
1$
th
month N "1$x(CC1$ , 11x(CC11*-1$
"4* Each 4ene=ciary ha5ing =rm allocation in capacity o1 the generating
station shall pay 1or the 7
1
st
month N X (CC1 x ?D1 Y-1$ $
n2
month N X$)(CC$ x ?D$ , 1)(CC1x
?D1Y-1$ 3
r2
month N "3x(CC3 x ?D3 , $)(CC$ x ?D$Y-1$ %
th
month N
"%x(CC% x ?D% , 3x(CC3 x ?D3Y-1$ .
th
month N ".)(CC. x ?D. ,
%x(CC% x ?D%Y-1$ &
th
month N "&)(CC. x ?D& , .x(CC. x ?D.Y-1$
7
th
month N "7)(CC7 x ?D7 , &x(CC& x ?D&Y-1$ 3
th
month N "3x(CC3 x
?D3 , 7x(CC7 x ?D7Y-1$ '
th
month N "'x(CC' x ?D' , 3x(CC3 x
?D3Y-1$ 1
th
month N "1x(CC1 x ?D1, 'x(CC' x ?D'Y-1$ 11
th

month N "11x(CC11 x ?D11, 1x(CC1x ?D1Y-1$ 1$
th
month N
"1$x(CC1$ x ?D1$, 11x(CC11x ?D 11Y-1$
?here,
(CC1, (CC$, (CC3, (CC%, (CC. (CC&, (CC7, (CC3, (CC', (CC1, (CC11
an2 (CC1$ are the amount o1 (nnual Capacity Charge correspon2ing to
K(5aila4ilityL 1or the cumulati5e perio2 up to the en2 o1 1
st
, $
n2
3
r2
, %
th
, .
th
, &
th
,
7
th
, 3
th
, '
th
, 1
th
, 11
th
an2 1$
th
months respecti5ely!
(n2, ?D1, ?D$, ?D3, ?D%, ?D., ?D&, ?D7, ?D3, ?D', ?D1, ?D11
an2 ?D1$ are the weighte2 a5erage o1 percentage allocate2 capacity
share o1 the 4ene=ciary 2uring the cumulati5e perio2 up to 1
st
, $
n2
3
r2
, %
th
,
.
th
, &
th
, 7
th
, 3
th
, '
th
, 1
th
11
th
an2 1$
th
month respecti5ely!
C8(9#ER 3
8:DRI 9I?ER @ENER(#0N@ S#(#0INS
31! De=nitions7 Jnless the context otherwise reEuires 1or the purpose o1
this chapter, 7,
1 "i* K(ctL means the Electricity (ct, $3C
$ "ii* M(22itional CapitalisationB means the capital expen2iture actually
incurre2 a1ter the 2ate o1 commercial operation o1 the station an2
a2mitte2 4y the Commission a1ter pru2ence chec6 su4<ect to pro5isions o1
regulation 3%C
"iii* K(uthority B means Central Electricity (uthority re1erre2 to in
Section 7 o1 the (ctC
1 "i5* B(uxiliary Energy ConsumptionL in relation to a perio2 means the
Euantum o1 energy consume2 4y auxiliary eEuipment o1 the generating
station, an2 shall 4e expresse2 as a percentage o1 the sum o1 gross
energy generate2 at generator terminals o1 all the units o1 the generating
stationC
$ "5* KDene=ciaryL in relation to a generating station means the person
4uying power generate2 at such a generating station on payment o1
annual capacity chargesC
3 "5i* BCapacity 0n2exB means the a5erage o1 the 2aily capacity in2ices
o5er one yearC
"5ii* BCommissionB means the Central Electricity Regulatory
Commission re1erre2 to in Section 7& o1 the (ctC
"5iii* KCut o; DateL means a1ter one year o1 the 2ate o1 commercial
operation o1 the generating stationC
1 "ix* KDate o1 Commercial IperationL or KCIDL in relation to a unit
means the 2ate 2eclare2 4y the generator a1ter 2emonstrating the
/aximum Continuous Rating "/CR* or 0nstalle2 Capacity "0C* through a
success1ul trial run, a1ter notice to the 4ene=ciaries, an2 in relation to the
generating station the 2ate o1 commercial operation means the 2ate o1
commercial operation o1 the last unit o1 the generating stationC
$ "x* BDaily Capacity 0n2exB means the 2eclare2 capacity expresse2 as
a percentage o1 the maximum a5aila4le capacity 1or the 2ay an2 shall 4e
mathematically expresse2 as hereun2er7
Declare2 Capacity "/?*
Daily Capacity 0n2ex N
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
, x 1 /aximum (5aila4le
Capacity "/?*
Daily capacity in2ex shall 4e limite2 to 1R!
"xi* KDeclare2 CapacityB or BDCB
1 "a* For run,o1,ri5er power station with pon2age an2 storage,type
power stations, 2eclare2 capacity means the ex,4us capacity in /?
expecte2 to 4e a5aila4le 1rom the generating station o5er the pea6ing
hours o1 next 2ay, as 2eclare2 4y the generator, ta6ing into account the
a5aila4ility o1 water, optimum use o1 water an2 a5aila4ility o1 machines
an2 1or this purpose, the pea6ing hours shall not 4e less than 3 hours
within $% hour perio2, an2
$ "4* 0n case o1 purely run,o1ri5er power stations, 2eclare2 capacity
means the ex,4us capacity in /? expecte2 to 4e a5aila4le 1rom the
generating station 2uring the next 2ay, as 2eclare2 4y the generating
station, ta6ing into account the a5aila4ility o1 water, optimum use o1 water
an2 a5aila4ility o1 machinesC
"xii* KDeeme2 @eneration B means the energy which a generating station
was capa4le o1 generating 4ut coul2 not generate 2ue to the con2itions o1
gri2 or power system, 4eyon2 the control o1 generating station resulting in
spillage o1 waterC
"xiii* BDesign EnergyB means the Euantum o1 energy which coul2 4e
generate2 in a 'R 2epen2a4le year with '.R installe2 capacity o1 the
generating stationC
"xi5* MExisting @enerating StationB means a generating station 2eclare2
un2er commercial operation 1rom a 2ate prior to 1!%!$%C
"x5* K0n=rm 9owerL means electricity generate2 prior to commercial
operation o1 the unit o1 a generating stationC
"x5i* K0nstalle2 CapacityB or B0CL means the summation o1 the name plate
capacities o1 the units in the generating station or the capacity o1 the
generating station "rec6one2 at the generator terminals* as appro5e2 4y
the Commission 1rom time to timeC
"x5ii* B/aximum (5aila4le CapacityB means the 1ollowing7
"a* Run,o1,ri5er power station with pon2age an2 storage type
power stations
#he maximum capacity in /?, the generating station can
generate with all units running, un2er the pre5ailing con2itions o1
water le5els an2 Aows, o5er the pea6ing hours o1 next 2ay,
Explanation
#he pea6ing hours 1or this purpose shall not 4e less than 3 hours
within a $% hours perio2!
"4* 9urely run,o1,ri5er power stations
#he maximum capacity in /?, the generating station can
generate with all units running, un2er the pre5ailing con2itions o1
water le5els an2 Aows o5er the next 2ay!
"x5iii* BIperation an2 /aintenance ExpensesB or MI>/ ExpensesB means
the expen2iture incurre2 in operation an2 maintenance o1 the generating
station, inclu2ing part thereo1, inclu2ing the expen2iture on manpower,
repairs, spares, consuma4les, insurance an2 o5erhea2sC
"xix* MIriginal 9ro<ect CostB means the actual expen2iture incurre2 4y the
generating company, as per the original scope o1 pro<ect up to =rst
=nancial year closing a1ter one year o1 the 2ate o1 commercial operation o1
the last unit as a2mitte2 4y the Commission 1or 2etermination o1 tari;C
"xx* B9rimary Energy B means the Euantum o1 energy generate2 up to the
2esign energy on per year 4asis at the generating stationC
"xxi* B9ro<ect B means a generating station an2 inclu2es the complete
hy2ro power generating 1acility co5ering all components such as 2am,
inta6e, water con2uctor system, power generating station an2 generating
units o1 the scheme as apportione2 to power generationC
"xxii* KRun,o1,ri5er power stationL means a hy2ro electric power generating
station which has no upstream pon2ageC
"xxiii* K Run o1,ri5er power station with pon2ageL means a hy2ro electric
power generating station with suHcient pon2age 1or meeting the 2iurnal
5ariation o1 power 2eman2C
"xi5* K Storage #ype power stationL means a hy2ro electric power
generating station associate2 with large storage capacity to ena4le
5ariation o1 generation o1 power accor2ing to 2eman2C
"xx5* BSalea4le 9rimary EnergyB means the Euantum o1 primary energy
a5aila4le 1or sale "ex,4us* a1ter allowing 1or 1$R 1ree energy to the home
stateC
"xx5i* BSecon2ary EnergyB means the Euantum o1 energy generate2 in
excess o1 the 2esign energy on per year 4asis at the generating stationC
"xx5ii* BSalea4le Secon2ary EnergyB means the Euantum o1 secon2ary
energy a5aila4le 1or sale "ex,4us* a1ter allowing 1or 1$R 1ree energy to the
home stateC
"xx5iii* BSche2ule2 EnergyB means the Euantum o1 energy to 4e
generate2 at the generating station o5er the $%,hour perio2, as
sche2ule2 4y the Regional +oa2 Despatch CentreC
"xxix* K:earL means a =nancial year!
3$! Norms o1 Iperation7 #he norms o1 operation shall 4e as un2er,
namely7
"i* Normati5e capacity in2ex 1or reco5ery o1 1ull capacity charges
1 "a* During =rst year o1 commercial operation o1 the generating
station
$ "i* 9urely Run,o1,ri5er power stations , 3.R
3 "ii* Storage type an2 Run,o1,ri5er power stations with pon2age
, 3R
% "4* (1ter =rst year o1 commercial operation o1 the generating station
. "i* 9urely Run,o1 ri5er power stations , 'R
& "ii* Storage type an2 Run,o1,ri5er power stations with pon2age
, 3.R
Note
#here shall 4e pro rata reco5ery o1 capacity charges in case the
generating station achie5es capacity in2ex 4elow the prescri4e2
normati5e le5els! (t Zero capacity in2ex, no capacity charges shall
4e paya4le to the generating station!
"ii* (uxiliary Energy Consumption 7
1 "a* Sur1ace hy2ro electric power generating stations with rotating
exciters mounte2 on the generator sha1t , !$R o1 energy generate2
$ "4* Sur1ace hy2ro electric power generating stations with static
excitation system , !.R o1 energy generate2
3 "c* Jn2ergroun2 hy2ro electric power generating stations with
rotating exciters mounte2 on the generator sha1t , !%R o1 energy
generate2
% "2* Jn2ergroun2 hy2ro electric power generating stations with static
excitation system , !7R o1 energy generate2
"iii* #rans1ormation losses
From generation 5oltage to transmission 5oltage , !.R o1
energy generate2!
33! Capital Cost7 Su4<ect to pru2ence chec6 4y the Commission, the actual
expen2iture incurre2 on completion o1 the pro<ect shall 1orm the 4asis 1or
2etermination o1 =nal tari;! #he =nal tari; shall 4e 2etermine2 4ase2 on
the a2mitte2 capital expen2iture actually incurre2 up to the 2ate o1
commercial operation o1 the generating station an2 shall inclu2e initial
capital spares su4<ect to a ceiling norm o1 1!.R o1 the original pro<ect cost
as on the cut o; 2ate!
9ro5i2e2 1urther that where the power purchase agreement entere2
into 4etween the generating company an2 the 4ene=ciaries pro5i2es a
ceiling o1 actual expen2iture, the capital expen2iture shall not excee2 such
ceiling 1or 2etermination o1 tari;!
0n case o1 existing generating stations, the pro<ect cost a2mitte2 4y
the Commission prior to 1!%!$% shall 1orm the 4asis 1or 2etermination o1
tari;!
Note
#he scrutiny o1 the pro<ect cost estimates 4y the Commission shall
4e limite2 to the reasona4leness o1 the capital cost, =nancing plan,
interest 2uring construction, use o1 eHcient technology an2 such other
matters 1or the purposes o1 2etermination o1 tari;!
3%! (22itional capitalisation7 "1* #he 1ollowing capital expen2iture within
the original scope o1 wor6 actually incurre2 a1ter the 2ate o1 commercial
operation an2 up to the cut o; 2ate may 4e a2mitte2 4y the Commission
su4<ect to pru2ence chec6!
1 "i* De1erre2 lia4ilities,
$ "ii* ?or6s 2e1erre2 1or execution,
"iii* 9rocurement o1 initial capital spares in the original scope o1
wor6s su4<ect to ceiling speci=e2 in regulation 33,
1 "i5* +ia4ilities to meet awar2 o1 ar4itration or in compliance o1 the
or2er or 2ecree o1 a court, an2
$ "i5* In account o1 change in law!
9ro5i2e2 that original scope o1 wor6s along with estimates o1
expen2iture shall 4e su4mitte2 along with the application 1or pro5isional
tari;!
9ro5i2e2 1urther that a list o1 the 2e1erre2 lia4ilities an2 wor6s
2e1erre2 1or execution shall 4e su4mitte2 along with the application 1or
=nal tari; a1ter the 2ate o1 commercial operation o1 generating station!
1 "$* Su4<ect to the pro5ision o1 clause "3* o1 this regulation, the
capital expen2iture o1 the 1ollowing nature actually incurre2 a1ter the cut
o; 2ate may 4e a2mitte2 4y the Commission su4<ect to pru2ence chec67
$ "i* De1erre2 lia4ilities relating to wor6s-ser5ices within the original
scope o1 wor6C
3 "ii* +ia4ilities to meet awar2 o1 ar4itration or in compliance o1 the
or2er or 2ecree o1 a courtC
% "iii* In account o1 change in lawC an2
. "i5* (ny a22itional wor6s-ser5ice which has 4ecome necessary 1or
eHcient an2 success1ul operation o1 plant 4ut not inclu2e2 in the original
capital cost!
$ "3* (ny expen2iture incurre2 on acEuiring minor items-assets li6e
tools an2 tac6les, personal computers, 1urniture, air,con2itioners, 5oltage
sta4iliFers, re1rigerators, coolers, 1ans, #!G, washing machine, heat,
con5ectors, mattresses, carpets, etc 4rought a1ter the cut o; 2ate shall
not 4e consi2ere2 1or a22itional capitaliFation 1or 2etermination o1 tari;
with e;ect 1rom 1!%!$%!
Note
#he list o1 items is illustrati5e an2 not exhausti5e!
"%* 0mpact o1 a22itional capitalisation in tari; re5ision may 4e consi2ere2
4y the Commission twice in a tari; perio2, inclu2ing re5ision o1 tari; a1ter
the cut o; 2ate!
Note 1
(ny expen2iture a2mitte2 on account o1 committe2 lia4ilities within
the original scope o1 wor6 an2 the expen2iture 2e1erre2 on techno,
economic groun2s 4ut 1alling within the original scope o1 wor6 shall 4e
ser5ice2 in the normati5e 2e4t,eEuity ratio speci=e2 in regulation 3&!
Note $
(ny expen2iture on replacement o1 ol2 assets shall 4e consi2ere2
a1ter writing o; the gross 5alue o1 the original assets 1rom the original
capital cost, except such items as are liste2 in Clause "3* o1 this regulation!
Note 3
(ny expen2iture a2mitte2 4y the Commission 1or 2etermination o1
tari; on account o1 new wor6s not in the original scope o1 wor6 shall 4e
ser5ice2 in the normati5e 2e4t,eEuity ratio speci=e2 in regulation 3&!
Note %
(ny expen2iture a2mitte2 on reno5ation an2 mo2erniFation an2 li1e
extension shall 4e ser5ice2 on normati5e 2e4t,eEuity ratio speci=e2 in
regulation 3& a1ter writing o; the original amount o1 the replace2 assets
1rom the original capital cost!
1 Sale o1 0n=rm 9ower7 (ny re5enue earne2 4y the generating
company 1rom sale o1 in=rm power, shall 4e ta6en as re2uction in capital
cost an2 shall not 4e treate2 as re5enue! #he rate 1or in=rm power shall 4e
same as the primary energy rate o1 the generating station!
$ De4t,EEuity Ratio7 "1* 0n case o1 all generating stations, 2e4teEuity
ratio as on the 2ate o1 commercial operation shall 4e 773 1or
2etermination o1 tari;! ?here eEuity employe2 is more than 3R, the
amount o1 eEuity 1or 2etermination o1 tari; shall 4e limite2 to 3R an2 the
4alance amount shall 4e consi2ere2 as the normati5e loan!
9ro5i2e2 that in case actual eEuity employe2 is less than 3R, the
actual 2e4t an2 eEuity shall 4e consi2ere2 1or 2etermination o1 tari;!
"$* #he 2e4t an2 eEuity amounts arri5e2 at in accor2ance with clause "1*
shall 4e use2 1or calculating interest on loan, return on eEuity, (25ance
(gainst Depreciation an2 Foreign Exchange Rate Gariation!
37! Computation o1 (nnual Charges7 #he two,part tari; 1or sale o1
electricity 1rom a hy2ro power generating station shall comprise o1
reco5ery o1 annual capacity charge an2 primary energy charges7
"i* Capacity Charges7 #he capacity charges shall 4e compute2 in
accor2ance with the 1ollowing 1ormula7
Capacity Charges N "(nnual Fixe2 Charge, 9rimary Energy
Charge*
Note
Reco5ery through 9rimary energy charge shall not 4e more
than (nnual Fixe2 Charge!
"ii* (nnual Fixe2 Charges7 (nnual Fixe2 Charges shall consist o17
1 "a* 0nterest on loan capitalC
$ "4* Depreciation, inclu2ing (25ance (gainst DepreciationC
3 "c* Return on eEuityC
% "2* Iperation an2 maintenance expensesC an2
. "e* 0nterest on wor6ing capital!
33! Computation o1 (nnual Fixe2 Charges7 #he annual =xe2 charges shall
4e compute2 on the 1ollowing 4asis7
1 "i* 0nterest on loan capital
$ "a* 0nterest on loan capital shall 4e compute2 loan wise on the loans
arri5e2 at in the manner in2icate2 in regulation 3&!
3 "4* #he loan outstan2ing as on 1!%!$% shall 4e wor6e2 out as the
gross loan as per regulation 3& minus cumulati5e repayment as a2mitte2
4y the Commission up to 31!3!$%! #he repayment 1or the perio2
$%,' shall 4e wor6e2 out on a normati5e 4asis!
% "c* #he generating company shall ma6e e5ery e;ort to swap the loan
as long as it results in net 4ene=t to the 4ene=ciaries! #he costs
associate2 with such swapping shall 4e 4orne 4y the 4ene=ciaries!
. "2* #he changes to the loan terms an2 con2itions shall 4e reAecte2
1rom the 2ate o1 such swapping an2 4ene=t passe2 on to the 4ene=ciaries!
& "e* 0n case o1 any 2ispute, any o1 the parties may approach the
Commission with proper application! 8owe5er, the 4ene=ciaries shall not
withhol2 any payment as or2ere2 4y the Commission to the generating
company 2uring pen2ency o1 any 2ispute relating to swapping o1 loan!
7 "1* 0n case any moratorium perio2 is a5aile2 o1 4y the generating
company, 2epreciation pro5i2e2 1or in the tari; 2uring the years o1
moratorium shall 4e treate2 as repayment 2uring those years an2 the
interest on loan capital shall 4e calculate2 accor2ingly!
3 "g* #he generating company shall not ma6e any pro=t on account o1
swapping o1 loan an2 interest on loan!
$ "ii* Depreciation, inclu2ing (25ance (gainst Depreciation
"a* Depreciation
For the purpose o1 tari;, 2epreciation shall 4e compute2
in the 1ollowing manner, namely7
1 "i* #he 5alue 4ase 1or the purpose o1 2epreciation shall 4e the
historical cost o1 the asset!
$ "ii* Depreciation shall 4e calculate2 annually 4ase2 on straight line
metho2 o5er the use1ul li1e o1 the asset an2 at the rates prescri4e2 in
(ppen2ix 00 to these regulations!
#he resi2ual li1e o1 the asset shall 4e consi2ere2 as 1R
an2 2epreciation shall 4e allowe2 up to maximum o1 'R o1
the historical capital cost o1 the asset! +an2 is not a
2eprecia4le asset an2 its cost shall 4e exclu2e2 1rom the
capital cost while computing 'R o1 the historical cost o1 the
asset! #he historical capital cost o1 the asset shall inclu2e
a22itional capitalisation on account o1 Foreign Exchange Rate
Gariation up to 31!3!$% alrea2y allowe2 4y the Central
@o5ernment-Commission!
"iii* In repayment o1 entire loan, the remaining 2eprecia4le
5alue shall 4e sprea2 o5er the 4alance use1ul li1e o1 the asset!
"i5* Depreciation shall 4e chargea4le 1rom the =rst year o1
operation! 0n case o1 operation o1 the asset 1or part o1 the
year, 2epreciation shall 4e charge2 on pro rata 4asis!
"4 * (25ance (gainst Depreciation
0n a22ition to allowa4le 2epreciation, the generating
company shall 4e entitle2 to (25ance (gainst Depreciation,
compute2 in the manner gi5en hereun2er7
((D N +oan repayment amount as per regulation 33 "i*
su4<ect to a ceiling o1 1-1
th
o1 loan amount as per
regulation 3& minus 2epreciation as per sche2ule
9ro5i2e2 that (25ance (gainst Depreciation shall 4e permitte2
only i1 the cumulati5e repayment up to a particular year excee2s the
cumulati5e 2epreciation up to that yearC
9ro5i2e2 1urther that (25ance (gainst Depreciation in a year
shall 4e restricte2 to the extent o1 2i;erence 4etween cumulati5e
repayment an2 cumulati5e 2epreciation up to that year!
"iii* Return on EEuity
Return on eEuity shall 4e compute2 on the eEuity 4ase 2etermine2 in
accor2ance with regulation 3& an2 shall 4e T 1%R per annum!
9ro5i2e2 that eEuity in5este2 in any 1oreign currency shall 4e
allowe2 a return up to the prescri4e2 limit in the same currency an2 the
payment on this account shall 4e ma2e in 0n2ian Rupees 4ase2 on the
exchange rate pre5ailing on the 2ue 2ate o1 4illing!
Explanation
#he premium raise2 4y the generating company while issuing share
capital an2 in5estment o1 internal resources create2 out o1 1ree reser5e o1
the existing generating station, i1 any, 1or the 1un2ing o1 the pro<ect, shall
also 4e rec6one2 as pai2 up capital 1or the purpose o1 computing return on
eEuity, pro5i2e2 such premium amount an2 internal resources are actually
utilise2 1or meeting the capital expen2iture o1 the generating station an2
1orms part o1 the appro5e2 =nancial pac6age!
"i5* Iperation an2 /aintenance expenses
"a* #he operation an2 maintenance expenses inclu2ing insurance,
1or the existing generating stations which ha5e 4een in operation 1or
. years or more in the 4ase year o1 $3,%, shall 4e 2eri5e2 on the
4asis o1 actual operation an2 maintenance expenses 1or the years
1''3,'' to $$,3, 4ase2 on the au2ite2 4alance sheets, exclu2ing
a4normal operation an2 maintenance expenses, i1 any, a1ter
pru2ence chec6 4y the Commission!
#he a5erage o1 such normalise2 operation an2 maintenance
expenses a1ter pru2ence chec6, 1or the years 1''3,'' to $$,3
consi2ere2 as operation an2 maintenance expenses 1or the year
$,1 shall 4e escalate2 at the rate o1 %R per annum to arri5e at
operation an2 maintenance expenses 1or the 4ase year $3,%!
#he 4ase operation an2 maintenance expenses 1or the year
$3% shall 4e escalate2 1urther at the rate o1 %R per annum to
arri5e at permissi4le operation an2 maintenance expenses 1or the
rele5ant year o1 tari; perio2!
1 "4* 0n case o1 the hy2ro electric generating stations, which ha5e not
4een in existence 1or a perio2 o1 =5e years, the operation an2
maintenance expenses shall 4e =xe2 at 1!.R o1 the capital cost as
a2mitte2 4y the Commission an2 shall 4e escalate2 at the rate o1 %R per
annum 1rom the su4seEuent year to arri5e at operation an2 maintenance
expenses 1or the 4ase year $3,%! #he 4ase operation an2 maintenance
expenses shall 4e 1urther escalate2 at the rate o1 %R per annum to arri5e
at permissi4le operation an2 maintenance expenses 1or the rele5ant year!
$ "c* 0n case o1 the hy2ro electric generating stations 2eclare2
un2er commercial operation on or a1ter 1!%!$%, the 4ase
operation an2 maintenance expenses shall 4e =xe2 at 1!.R o1 the
actual capital cost as a2mitte2 4y the Commission, in the year o1
commissioning an2 shall 4e su4<ect to an annual escalation o1 %R
per annum 1or the su4seEuent years!
"5* 0nterest on ?or6ing Capital
1 "a* ?or6ing Capital shall co5er7
$ "i* Iperation an2 /aintenance expenses 1or one monthC
3 "ii* /aintenance spares T 1R o1 the historical cost escalate2 T &R
per annum 1rom the 2ate o1 commercial operationC an2
% "iii* Recei5a4les eEui5alent to two months o1 =xe2 charges 1or sale o1
electricity, calculate2 on normati5e capacity in2ex!
$ "4* Rate o1 interest on wor6ing capital shall 4e the short,term 9rime
+en2ing Rate o1 State Dan6 o1 0n2ia as on 1!%!$% or on 1
st
(pril o1 the
year in which the generating unit-station is 2eclare2 un2er commercial
operation, whiche5er is later! #he interest on wor6ing capital shall 4e
paya4le on normati5e 4asis notwithstan2ing that the generating company
has not ta6en wor6ing capital loan 1rom any outsi2e agency!
3'! 9rimary an2 Secon2ary Energy Charges7 "1* 9rimary energy charge
shall 4e wor6e2 out on the 4asis o1 paise per 6?h rate on ex,4us energy
sche2ule2 to 4e sent out 1rom the hy2ro electric power generating
station a1ter a2<usting 1or 1ree power 2eli5ere2 to the home state!
"$* Rate o1 primary energy 1or all hy2ro electric power generating
stations, except 1or pumpe2 storage generating stations, shall 4e eEual
to the lowest 5aria4le charges o1 the central sector thermal power
generating station o1 the concerne2 region! #he primary energy charge
shall 4e compute2 4ase2 on the primary energy rate an2 salea4le
energy o1 the station!
9ro5i2e2 that in case the primary energy charge reco5era4le 4y
applying the a4o5e primary energy rate excee2s the (nnual Fixe2
Charge o1 a generating station, the primary energy rate 1or such
generating station shall 4e calculate2 4y the 1ollowing 1ormula7
9rimary energy rate N (nnual Fixe2 Charge
Salea4le 9rimary Energy
"3* 9rimary Energy Charge N Salea4le 9rimary Energy x 9rimary Energy
Rate
Secon2ary Energy Rate shall 4e eEual to 9rimary Energy Rate!
Secon2ary Energy Charge N Salea4le Secon2ary Energy x Secon2ary
Energy Rate!
%! 0ncenti5e7 "1* 0ncenti5e shall 4e paya4le in case o1 all the generating
stations, inclu2ing in case o1 new generating stations in the =rst year o1
operation, when the capacity in2ex "C0* excee2s 'R 1or purely run,o1,
ri5er power generating stations an2 3.R 1or run,o1,ri5er power station
with pon2age or storage type power generating stations an2 incenti5e
shall accrue up to a maximum capacity in2ex o1 1R!
"$* 0ncenti5e shall 4e paya4le to the generating company in accor2ance
with the 1ollowing 1ormula7 0ncenti5e N !&. x (nnual Fixe2 Charge x "C0(
C0N*-1
"01 incenti5e is negati5e, it shall 4e set to Fero!*
?here, C0( is the Capacity 0n2ex achie5e2 an2 C0N is the
normati5e capacity in2ex whose 5alues are 'R 1or
purely run o1 the ri5er hy2ro stations an2 3.R 1or
pon2age-storage type hy2ro generating stations!
1 "3* #he incenti5es on account o1 capacity in2ex an2 payment 1or
secon2ary energy shall 4e paya4le on monthly 4asis, su4<ect to
cumulati5e a2<ustment in each month o1 the =nancial year, separately in
respect o1 each item, an2 =nal a2<ustment shall 4e ma2e at the en2 o1 the
=nancial year!
$ "%* #he total incenti5e payment calculate2 on annual 4asis shall 4e
share2 4y the 4ene=ciaries 4ase2 on the allocate2 capacity!
3 ".* 0ncenti5e 1or completion o1 hy2ro electric power generating
stations ahea2 o1 sche2ule
0n case o1 commissioning o1 a hy2ro electric power generating
station or part thereo1 ahea2 o1 sche2ule, as set out in the =rst appro5al o1
the Central @o5ernment or the techno,economic clearance o1 the
(uthority, as applica4le, the generating station shall 4ecome eligi4le 1or
incenti5e 1or an amount eEual to pro rata re2uction in interest 2uring
construction, achie5e2 on commissioning ahea2 o1 the sche2ule! #he
incenti5e shall 4e reco5ere2 through tari; in twel5e eEual monthly
installments 2uring the =rst year o1 operation o1 the generating station! 0n
case o1 2elay in commissioning as set out in the =rst appro5al o1 the
Central @o5ernment or the techno,economic clearance o1 the (uthority, as
applica4le, interest 2uring construction 1or the perio2 o1 2elay shall not 4e
allowe2 to 4e capitalise2 1or 2etermination o1 tari;, unless the 2elay is on
account o1 natural calamities or geological surprises!
%1! Deeme2 @eneration7 "1* 0n case o1 re2uce2 generation 2ue to the
reasons 4eyon2 the control o1 generating company or on account o1 non,
a5aila4ility o1 Doar2Bs-transmission licenseeBs transmission lines or on
receipt o1 4ac6ing 2own instructions 1rom the concerne2 Regional +oa2
Despatch Centre resulting in spillage o1 water, the energy charges on
account o1 such spillage shall 4e paya4le to the generating company!
(pportionment o1 energy charges 1or such spillage among the
4ene=ciaries shall 4e in proportion o1 their shares in salea4le capacity o1
the generating station!
"$* Energy charges on the a4o5e account shall not 4e a2missi4le i1 the
energy generate2 2uring the year is eEual to or more than the 2esign
energy!
%$! Jnsche2ule2 0nterchange "J0*7 "1* Gariation 4etween actual
generation or actual 2rawal an2 sche2ule2 generation or sche2ule2 2rawal
shall 4e accounte2 1or through Jnsche2ule2 0nterchange "J0* charges! J0
1or a generating station shall 4e eEual to its actual generation minus its
sche2ule2 generation! J0 1or a 4ene=ciary shall 4e eEual to its total actual
2rawal minus its total sche2ule2 2rawal! J0 shall 4e wor6e2 out 1or each
1. minute time 4loc6! Charges 1or all J0 transactions shall 4e 4ase2 on
a5erage 1reEuency o1 the time 4loc6 an2 the 1ollowing rates shall apply
with e;ect 1rom 1!%!$%7
(5erage FreEuency o1 time 4loc6 J0 Rate "9aise per 6?h*
.!. 8F an2 a4o5e ! Delow .!. 8F an2 up to .!%3 8F 3! Delow
%'!% 8F an2 up to %'!$ 8F .'$! Delow %'!$ 8F &! Detween
.!. 8F an2 %'!$ 8F linear in !$ 8F step "Each !$ 8F step is
eEui5alent to 3! paise -6?h within the a4o5e range*
Note
#he a4o5e a5erage 1reEuency range an2 J0 rates are su4<ect to change
through a separate noti=cation 4y the Commission!
"$* "i* (ny generation up to 1.R o1 2eclare2 capacity in any time 4loc6
o1 1. minutes an2 a5eraging up to 11R o1 the a5erage 2eclare2
capacity o5er a 2ay shall not 4e construe2 as gaming, an2 generator
shall 4e entitle2 to J0 charges 1or such excess generation a4o5e the
sche2ule2 generation "S@*!
"ii* For any generation 4eyon2 the prescri4e2 limits, the Regional
+oa2 Despatch Centre shall in5estigate so as to ensure that there is
no gaming, an2 i1 gaming is 1oun2 4y the Regional +oa2 Despatch
Centre, the correspon2ing J0 charges 2ue to the generating station
on account o1 such extra generation shall 4e re2uce2 to Fero an2 the
amount shall 4e a2<uste2 in J0 account o1 4ene=ciaries, in the ratio
o1 their capacity share in the generating station!
1 Re4ate7 For payment o1 4ills o1 capacity charge an2 energy charge
through the letter o1 cre2it on presentation, a re4ate o1 $R shall 4e
allowe2! 01 the payments are ma2e 4y a mo2e other than through the
letter o1 cre2it 4ut within a perio2 o1 one month o1 presentation o1 4ills 4y
the generating company , a re4ate o1 1R shall 4e allowe2!
$ +ate 9ayment Surcharge7 0n case the payment o1 4ills o1 capacity
charge an2 energy charge 4y the 4ene=ciary "ies* is 2elaye2 4eyon2 a
perio2 o1 1 month 1rom the 2ate o1 4illing, a late payment surcharge at
the rate o1 1!$.R per month shall 4e le5ie2 4y the generating company !
1 %.! Sche2uling7 Rea2 with the pro5isions o1 the 0n2ian Electricity @ri2
Co2e, the metho2ology o1 sche2uling an2 calculating capacity in2ex shall
4e as un2er7
$ "i* #he generator shall ma6e an a25ance 2eclaration o1 capacity o1
its generating station! #he 2eclaration shall 4e 1or that capacity which can
4e
3 actually ma2e a5aila4le 1or a perio2 o1 time not less than 3 hours
within a $% hours perio2 1or pon2age an2 storage type o1 stations an2 1or
the entire 2ay 1or purely run,o1,ri5er type stations!
% "ii* #he generator shall intimate the 2eclare2 capacity "/?*, 1or the
next 2ay, either as one =gure 1or the whole 2ay or 2i;erent =gures 1or
2i;erent perio2s o1 the 2ay along with maximum a5aila4le capacity "/?*
an2 total energy "/?h* ex,4us to the Regional +oa2 Despatch Centre!
#he 2eclaration shoul2 also inclu2e limitation on generation 2uring speci=c
time perio2s, i1 any, on account o1 restriction"s* on water use 2ue to
irrigation, 2rin6ing water, in2ustrial, en5ironmental consi2erations etc!
"iii* ?hile ma6ing or re5ising his 2eclaration o1 capa4ility, the generator
shall ensure that the 2eclare2 capacity 2uring pea6 hours is not less than
that 2uring other hours! 8owe5er, exception to this rule shall 4e allowe2 in
case o1 tripping-re,synchronisation o1 units as a result o1 1orce2 outage o1
units!
1 "i5* @eneration sche2uling shall 4e 2one in accor2ance with the
operating proce2ure, as stipulate2 in the 0n2ian Electricity @ri2 Co2e!
$ "5* Dase2 on the 2eclaration o1 the generator, the Regional +oa2
Despatch Centre shall communicate their shares to the 4ene=ciaries out o1
which they shall gi5e their reEuisitions!
3 "5i* Dase2 on the reEuisitions gi5en 4y the 4ene=ciaries an2 ta6ing
into account technical limitations on 5arying the generation an2 also
ta6ing into account transmission system constraints, i1 any, the Regional
+oa2 Despatch Centre shall prepare the economically optimal generation
sche2ules an2 2rawal sche2ules an2 communicate the same to the
generator an2 the 4ene=ciaries!
#he Regional +oa2 Despatch Centre shall also 1ormulate the proce2ure 1or
meeting contingencies 4oth in the long run an2 in the short run "Daily
sche2uling*!
"5ii* #he sche2ule2 generation an2 actual generation shall 4e ex,4us at
the generating station! For 4ene=ciaries, the sche2ule2 an2 actual net
2rawals shall 4e at their respecti5e recei5ing points!
"5iii* For calculating the net 2rawal sche2ules o1 4ene=ciaries, the
transmission losses shall 4e apportione2 to their 2rawal sche2ule 1or the
time 4eing! 8owe5er, a re=nement may 4e speci=e2 4y the Commission in
1uture, 2epen2ing upon the prepare2ness o1 the respecti5e Regional +oa2
Despatch Centre!
1 "ix* 0n case o1 1orce2 outage o1 a unit, the Regional +oa2 Despatch
Centre shall re5ise the sche2ules on the 4asis o1 re5ise2 2eclare2
capa4ility! #he re5ise2 2eclare2 capa4ility an2 the re5ise2 sche2ules shall
4ecome e;ecti5e 1rom the %th time 4loc6, counting the time 4loc6 in
which the re5ision is a25ise2 4y the generator to 4e the =rst one!
$ "x* 0n the e5ent o1 4ottlenec6 in e5acuation o1 power 2ue to any
constraint, outage, 1ailure or limitation in the transmission system,
associate2 switchyar2 an2 su4, stations owne2 4y the Central
#ransmission Jtility or any other transmission licensee in5ol5e2 in inter,
state transmission "as certi=e2 4y the Regional +oa2 Despatch Centre*
necessitating re2uction in generation, the Regional +oa2 Despatch Centre
shall re5ise the sche2ules which shall 4ecome e;ecti5e 1rom the %th time
4loc6, counting the time 4loc6 in which the 4ottlenec6 in e5acuation o1
power has ta6en place to 4e the =rst one! (lso, 2uring the =rst, secon2
an2 thir2 time 4loc6s o1 such an e5ent, the sche2ule2 generation o1 the
generating station shall 4e 2eeme2 to ha5e 4een re5ise2 to 4e eEual to
actual generation, an2 the sche2ule2 2rawals o1 the 4ene=ciaries shall 4e
2eeme2 to ha5e 4een re5ise2 to 4e eEual to their actual 2rawals!
3 "xi* 0n case o1 any gri2 2istur4ance, sche2ule2 generation o1 all the
generating stations an2 sche2ule2 2rawal o1 all the 4ene=ciaries shall 4e
2eeme2 to ha5e 4een re5ise2 to 4e eEual to their actual
generation-2rawal 1or all the time 4loc6s a;ecte2 4y the gri2 2istur4ance!
Certi=cation o1 gri2 2istur4ance an2 its 2uration shall 4e 2one 4y the
Regional +oa2 Despatch Centre!
"xii* Re5ision o1 2eclare2 capa4ility 4y the generator"s* an2 reEuisition 4y
4ene=ciary"ies* 1or the remaining perio2 o1 the 2ay shall also 4e permitte2
with a25ance notice! Re5ise2 sche2ules-2eclare2 capa4ility in such cases
shall 4ecome e;ecti5e 1rom the &th time 4loc6, counting the time 4loc6 in
which the reEuest 1or re5ision has 4een recei5e2 in the Regional +oa2
Despatch Centre to 4e the =rst one!
"xiii* 01, at any point o1 time, the Regional +oa2 Despatch Centre o4ser5es
that there is nee2 1or re5ision o1 the sche2ules in the interest o1 4etter
system operation, it may 2o so on its own an2 in such cases, the re5ise2
sche2ules shall 4ecome e;ecti5e 1rom the %th time 4loc6, counting the
time 4loc6 in which the re5ise2 sche2ule is issue2 4y the Regional +oa2
Despatch Centre to 4e the =rst one!
"xi5* @eneration sche2ules an2 2rawal sche2ules issue2-re5ise2 4y the
Regional +oa2 Despatch Centre shall 4ecome e;ecti5e 1rom 2esignate2
time 4loc6 irrespecti5e o1 communication success!
"x5* For any re5ision o1 sche2ule2 generation, inclu2ing post 1acto 2eeme2
re5ision, there shall 4e a correspon2ing re5ision o1 sche2ule2 2rawals o1
the 4ene=ciaries!
"x5i* ( proce2ure 1or recor2ing the communication regar2ing changes to
sche2ules 2uly ta6ing into account the time 1actor shall 4e e5ol5e2 4y the
Central #ransmission Jtility!
"x5ii* 9urely run,o1,ri5er power stations
Since 5ariation o1 generation in such stations may lea2
to spillage, these shall 4e treate2 as must run stations! #he
maximum a5aila4le capacity, 2uly ta6ing into account the o5er
loa2 capa4ility, must 4e eEual to or greater than that reEuire2
to ma6e 1ull use o1 the a5aila4le water!
"x5iii* Run,o1,ri5er power station with pon2age an2 storage type
power stations
#hese hy2ro stations are 2esigne2 to operate 2uring
pea6 hours to meet system pea6 2eman2! /aximum a5aila4le
capacity o1 the station 2eclare2 1or the 2ay shall 4e eEual to
the installe2 capacity inclu2ing o5erloa2 capa4ility, minus
auxiliary consumption an2 trans1ormation losses, correcte2 1or
the reser5oir le5el! #he Regional +oa2 Despatch Centres shall
ensure that generation sche2ules o1 such type o1 stations are
prepare2 an2 the stations 2ispatche2 1or optimum utiliFation
o1 a5aila4le hy2ro energy except in the e5ent o1 speci=c
system reEuirements-constraints!
%&! Demonstration o1 Declare2 Capa4ility7 "1* #he generating company
may 4e reEuire2 to 2emonstrate the 2eclare2 capacity o1 its generating
station as an2 when as6e2 4y the Regional +oa2 Despatch Centre o1 the
region in which the generating station is situate2! 0n the e5ent o1 the
generating company 1ailing to 2emonstrate the 2eclare2 capacity, within
the tolerance as speci=e2 4y the Central #ransmission Jtility, the capacity
charges 2ue to the generating station shall 4e re2uce2 as a measure o1
penalty!
1 "$* #he Euantum o1 penalty 1or the =rst mis,2eclaration 1or any
2uration or 4loc6 in a 2ay shall 4e the charges correspon2ing to two 2ays
=xe2 charges! For the secon2 mis2eclaration the penalty shall 4e
eEui5alent to =xe2 charges 1or 1our 2ays an2 1or su4seEuent mis,
2eclarations, the penalty shall 4e multiplie2 in the geometrical
progression!
$ "3* #he operating log 4oo6s o1 the generating station shall 4e
a5aila4le 1or re5iew 4y the Regional 9ower Committee or the Regional
Electricity Doar2, as the case may 4e! #hese 4oo6s 6eep recor2 o1 machine
operation an2 maintenance, reser5oir le5el an2 spillway gate operation!
%7! /etering an2 (ccounting7 /etering arrangements, inclu2ing
installation, testing an2 operation an2 maintenance o1 meters an2
collection, transportation an2 processing o1 2ata reEuire2 1or accounting o1
energy exchanges an2 a5erage 1reEuency on 1. minute time 4loc6 4asis
shall 4e organise2 4y the Central #ransmission Jtility-Regional +oa2
Despatch Centres! (ll concerne2 entities "in whose premises the special
energy meters are installe2*, shall 1ully cooperate with the Central
#ransmission Jtility-Regional +oa2 Despatch Centre an2 exten2 the
necessary assistance 4y ta6ing wee6ly meter rea2ings an2 transmitting
them to the Regional +oa2 Despatch Centre! 9rocesse2 2ata o1 meters
along with 2ata relating to 2eclare2 capa4ility an2 sche2ules etc!, shall 4e
supplie2 4y the Regional +oa2 Despatch Centres to the Regional 9ower
Committee or the Regional Electricity Doar2 an2 the Regional 9ower
Committee or the Regional Electricity Doar2 shall issue the Regional
(ccounts 1or energy on monthly
1 4asis as well as J0 charges on wee6ly 4asis! J0 accounting
proce2ures shall 4e go5erne2 4y the or2ers o1 the Commission!
$ Dilling an2 9ayment o1 Capacity Charges7 Dilling an2 payment o1
capacity charges shall 4e 2one on a monthly 4asis in the 1ollowing
manner7
"i* Each 4ene=ciary shall pay the capacity charges in proportion to
its percentage share in total salea4le capacity o1 the generating
station! Salea4le capacity shall mean total capacity minus 1ree
capacity to home state"s*, i1 any!
Note 1
(llocation o1 total capacity o1 central sector generating stations is
ma2e 4y Central @o5ernment 1rom time to time which also has an
unallocate2 portion! (llocation o1 the unallocate2 portion shall 4e
ma2e 4y the Central @o5ernment 1rom time to time, 1or the total
unallocate2 capacity an2 noti=e2 4y the /em4er Secretary, Regional
Electricity Doar2-Regional 9ower Committee in a25ance, at least
three "3* 2ays prior to such allocation- change in allocation ta6ing
e;ect! #he total capacity share o1 any 4ene=ciaries woul2 4e sum o1
its capacity share plus allocation out o1 the unallocate2 portion! 0n
the a4sence o1 speci=c 2istri4ution o1 unallocate2 power 4y the
Central @o5ernment, the unallocate2 power shall 4e a22e2 to the
allocate2 shares in the same proportion as the allocate2 shares!
Note $
#he 4ene=ciaries may propose surren2ering part o1 their allocate2
share to other States within-outsi2e the region! 0n such cases,
2epen2ing upon the technical 1easi4ility o1 power trans1er an2
speci=c agreements reache2 4y the generating company with other
States within-outsi2e the region 1or such trans1ers, the shares o1 the
4ene=ciaries may 4e re,allocate2 4y the Central @o5ernment 1or a
speci=c perio2! ?hen such re,allocations are ma2e, the 4ene=ciaries
who surren2er the share shall not 4e lia4le to pay capacity charges
1or the surren2ere2 share! #he capacity charges 1or the capacity
surren2ere2 an2 reallocate2 as a4o5e shall 4e pai2 4y the State"s*
to whom the surren2ere2 capacity is allocate2! Except 1or the perio2
o1 reallocation o1 capacity as a4o5e, the 4ene=ciaries o1 the
generating station shall continue to pay the 1ull =xe2 charges as per
allocate2 capacity shares! (ny such re,allocation shall 4e noti=e2 4y
the /em4er Secretary, Regional Electricity Doar2-Regional 9ower
Committee in a25ance, at least three
1 "3* 2ays prior to such re,allocation ta6ing e;ect!
$ "ii* #he 4ene=ciaries shall ha5e 1ull 1ree2om 1or negotiating any
transaction 1or utilisation o1 their capacity shares! 0n such cases, the
4ene=ciary ha5ing allocation in the capacity o1 the generating station shall
4e lia4le 1or 1ull payment o1 capacity charges an2 energy charges
"inclu2ing that 1or sale o1 power un2er the transaction negotiate2 4y him*
correspon2ing to his total allocation an2 sche2ule respecti5ely!
"iii* 01 any capacity remains un,reEuisitione2 2uring 2ay,to,2ay operation,
the Regional +oa2 Despatch Centre shall a25ise all 4ene=ciaries in the
region an2 the other Regional +oa2 Despatch Centres so that such
capacity may 4e reEuisitione2 through 4ilateral arrangements either with
the concerne2 generating company or the concerne2 4ene=ciary"ies*
un2er intimation to the Regional +oa2 Despatch Centre!
#he in1ormation regar2ing un,reEuisitione2 capacity shall also 4e ma2e
a5aila4le 4y the Regional +oa2 Despatch Centres through their respecti5e
we4sites!
"i5* #he capacity charges shall 4e pai2 4y the 4ene=ciary"ies* inclu2ing
those outsi2e the region to the generating company e5ery month in
accor2ance with the 1ollowing 1ormulas an2 in proportion to their
respecti5e shares in the concerne2 generating station7
(CC1 N(FC " S9E1 W DE $n2 to 1$th months* [ 9rimary Energy Rate (CC$
N(FC " S9E$ W DE 3r2 to 1$th months* [ 9rimary Energy Rate (CC3 N(FC
" S9E3 W DE %th to 1$th months* [ 9rimary Energy Rate (CC% N(FC
" S9E% W DE .th to 1$th months* [ 9rimary Energy Rate (CC. N(FC " S9E.
W DE &th to 1$th months* [ 9rimary Energy Rate (CC& N(FC " S9E& W DE
7th to 1$th months* [ 9rimary Energy Rate (CC7 N(FC " S9E7 W DE 3th to
1$th months* [ 9rimary Energy Rate (CC3 N(FC " S9E3 W DE 'th to 1$th
months* [ 9rimary Energy Rate (CC' N(FC " S9E' W DE 1th to 1$th
months* [ 9rimary Energy Rate (CC1 N(FC " S9E1 W DE 11th to 1$th
months* [ 9rimary Energy Rate (CC11 N(FC " S9E11 W DE 1$th month* [
9rimary Energy Rate (CC1$ N"(FC S9E1$ * [ 9rimary Energy Rate
?here,
(FC N (nnual Fixe2 Charges (CC1, (CC$, (CC3, (CC%, (CC. (CC&, (CC7,
(CC3, (CC', (CC1, (CC11 an2 (CC1$ are the amount o1 (nnual Capacity
Charge 1or the cumulati5e perio2 up to the en2 o1 1
st
, $
n2
3
r2
, %
th
, .
th
, &
th
, 7
th
,
3
th
, '
th
, 1
th
, 11
th
an2 1$
th
months respecti5ely!
S9E1, S9E$, S9E3,\\\\\\\ S9E]$ are the ex,4us sche2ule2
primary energy 5alues up to 1
st
, $
n2
, 3
r2
\\1$
th
months o1 the year
respecti5ely!
CC1 N(CC1 x DE1 DE
CC$ N(CC$ x DE$ DE
CC3 N(CC3 x DE3 DE CC%
N(CC% x DE%
DE
CC
.
N(CC.
x
DE.
DE
CC
&
N(CC& x DE&
DE
CC
7 N(CC7 x DE7
DE
CC
3
N(CC3 x DE3
DE
CC
'
N(CC' x DE'
DE
CC1 N(CC1 x DE1
DE CC11 N(CC11 x DE11
DE CC1$ N(CC1$ x DE1$
DE ?here, CC1, CC$, CC3,\\\!CC1$ is the monthly
capacity charge up to 1
st
, $
n2
, 3
r2
\\1$
th
months o1 the year respecti5ely!
DE N (nnual Design Energy DE1, DE$, DE3, \\\!DE1$ are the ex,4us
2esign energy 5alues up to 1
st
, $
n2
,
3
r2
\\1$
th
months o1 the year respecti5ely!
#otal capacity charges paya4le to the generator 1or the7
1
st
month N "CC1*
$
n2
month N "CC$ ,CC1*
3
r2
month N "CC3 , CC$*
%
th
month N "CC% ,CC3*
.
th
month N "CC. , CC%*
&
th
month N "CC& ,CC.*
7
th
month N "CC7 ,CC&*
3
th
month N "CC3 ,CC7*
'
th
month N "CC' ,CC3*
1
th
month N"CC1 CC'*
11
th
month N"CC11 ,CC1*
1$
th
month N"CC1$ ,CC11*
an2, each 4ene=ciary ha5ing =rm allocation in capacity o1 the generating
station
shall pay 1or the 7
1
st
month N X CC1 x ?D1 Y-1
$
n2
month N XCC$ x ?D$ ,CC1x ?D1Y-1
3
r2
month N "CC3 x ?D3 , CC$ x ?D$Y-1
%
th
month N "CC% x ?D% , CC3 x ?D3Y-1
.
th
month N "CC. x ?D. , CC% x ?D%Y-1
&
th
month N "CC& x ?D& , CC. x ?D.Y-1
7
th
month N "CC7 x ?D7 , CC& x ?D&Y-1
3
th
month N "CC3 x ?D3 , CC7 x ?D7Y-1
'
th
month N "CC' x ?D' , CC3 x ?D3Y-1
1
th
month N "CC1 x ?D1, CC' x ?D'Y-1
11
th
month N "CC11 x ?D11, CC1x ?D1Y-1
1$
th
month N "CC1$ x ?D1$, CC11x ?D 11Y-1
?here,
(n2, ?D1, ?D$, ?D3, ?D%, ?D., ?D&, ?D7, ?D3, ?D', ?D1, ?D11
an2 ?D1$ are the weighte2 a5erage o1 percentage allocate2 capacity
share o1 the 4ene=ciary 2uring the cumulati5e perio2 up to 1
st
, $
n2
3
r2
, %
th
,
.
th
, &
th
, 7
th
, 3
th
, '
th
, 1
th
, 11
th
an2 1$
th
month respecti5ely!
C8(9#ER %
0N#ER,S#(#E #R(NS/0SS0IN
%'! De=nitions7 Jnless the context otherwise reEuires, 1or the purpose o1
this chapter, 7,
1 "i* K(ctL means the Electricity (ct, $3C
$ "ii* M(22itional CapitalisationB means the capital expen2iture
actually incurre2 a1ter the 2ate o1 commercial operation o1 the
transmission system an2 a2mitte2 4y the Commission a1ter pru2ence
chec6 su4<ect to regulation .3C
"iii* B(llotte2 #ransmission CapacityB means the power trans1er in
/? 4etween the speci=e2 point"s* o1 in<ection an2 point"s* o1
2rawal allowe2 to a long,term customer on the inter,state
transmission system un2er the normal circumstances an2 the
expression ^allotment o1 transmission capacity^ shall 4e
construe2 accor2inglyC
(llotte2 #ransmission Capacity to a long,term
transmission customer shall 4e sum o1 the generating
capacities allocate2 to the long,term transmission customer
1rom the 0S@S an2 the contracte2 power, i1 anyC
1 "i5* B(uthorityB means Central Electricity (uthority re1erre2 to in
section 7 o1 the (ctC
$ "5* B(5aila4ilityB in relation to a transmission system 1or a gi5en
perio2 means the time in hours 2uring that perio2 the transmission
system is capa4le to transmit electricity at its rate2 5oltage an2 shall 4e
expresse2 in percentage o1 total hours in the gi5en perio2 an2 shall 4e
calculate2 as per the proce2ure containe2 in (ppen2ix,000 to these
regulationsC
3 "5i* BCommissionB means the Central Electricity Regulatory
Commission re1erre2 to in Section 7& o1 the (ctC
"5ii* BContracte2 9owerB means the power in /? which the
transmission licensee has agree2 to carry or which the
transmission licensee is reEuire2 to carry as per =rm allocation
1rom 0S@S outsi2e the region or the long,term agreement
4etween the importing an2 exporting utilityC
"5iii* MCut o; DateB means the 2ate o1 =rst =nancial year closing
a1ter one year o1 the 2ate o1 commercial operation o1 the
transmission system!
"ix* KDate o1 Commercial IperationL or KCIDL means the 2ate o1
charging the pro<ect or part thereo1 to its rate2 5oltage le5el or
se5en 2ays a1ter the 2ate on which it is 2eclare2 rea2y 1or
charging 4y the transmission licensee, 4ut is not a4le to 4e
charge2 1or reasons not attri4uta4le to the transmission
licensee, its suppliers or contractors!
9ro5i2e2 that the 2ate o1 commercial operation shall not 4e a
2ate prior to the sche2ule2 2ate o1 commercial operation mentione2
in the implementation agreement or the transmission ser5ice
agreement or the in5estment appro5al, as the case may 4e, unless
mutually agree2 to 4y all parties!
1 "x* KExisting 9ro<ectL means the pro<ect 2eclare2 un2er
commercial operation 1rom a 2ate prior to 1!%!$%C
$ "xi* K0mplementation (greementL means the agreement, contract
or memoran2um o1 un2erstan2ing, or any such co5enant, entere2 into
4etween the transmission licensee an2 the long,term transmission
customers 1or construction o1 the pro<ectC
"xii* K0nter,State @enerating StationL or K0S@SL has the meaning as
assigne2 in the 0n2ian Electricity @ri2 Co2e appro5e2-noti=e2 4y the
CommissionC
"xiii* B+ong,#erm #ransmission CustomerB means a person a5ailing or
inten2ing to a5ail access to the inter,state transmission system 1or a
perio2 o1 twenty =5e years or moreC
"xi5* MIriginal 9ro<ect CostB means the actual expen2iture incurre2 4y the
transmission licensee, as per the original scope o1 pro<ect up to =rst
=nancial year closing a1ter one year o1 the 2ate o1 commercial
operation o1 the last element as a2mitte2 4y the Commission 1or the
purpose o1 tari;C
"x5* BIperation an2 /aintenance ExpensesB or BI>/ ExpensesB means
the expen2iture incurre2 in operation an2 maintenance o1 the
transmission system, inclu2ing part thereo1, an2 inclu2es the
expen2iture on manpower, repairs, spares, consuma4les, insurance
an2 o5erhea2sC
"x5i* K9ro<ectL inclu2es the transmission system comprising speci=e2
transmission lines, su4,stations an2 associate2 eEuipmentC
"x5ii* BRate2 GoltageB means the manu1acturers 2esign 5oltage at which
the transmission system is 2esigne2 to operate or such lower
5oltage at which the line is charge2, 1or the time 4eing, in
consultation with long,term transmission customersC
"x5iii* BShort,#erm #ransmission CustomerB means a transmission
customer other than the long,term transmission customerC
"xix* B#ransmission Ser5ice (greement B means the agreement, contract,
memoran2um o1 un2erstan2ing, or any such co5enant, entere2 into
4etween the transmission licensee an2 the long,term transmission
customers 1or the operational phase o1 the pro<ectC
"xx* B#ransmission licenseeB, means a person grante2 licence 1or
inter,state transmission o1 electricity an2 inclu2es any person
2eeme2 to 4e a transmission licensee 1or inter,state
transmission o1 electricityC
"xxi* B #ransmission SystemB means a line with associate2 su4,
stations or a group o1 lines inter,connecte2 together along with
associate2 su4,stations an2 the term inclu2es eEuipment
associate2 with transmission lines an2 su4,stationsC
"xxii* B:earB means a =nancial year!
.! (uxiliary Energy Consumption in the su4,station
"a* (C System
1 #he charges 1or auxiliary energy consumption in the (C su4,station
1or the purpose o1 air,con2itioning, lighting, technical consumption, etc!
shall 4e 4orne 4y the transmission licensee as part o1 its normati5e
operation an2 maintenance expenses!
$ "4* 8GDC su4,station
For auxiliary energy consumption in 8GDC su4,stations,
the Central @o5ernment may allocate an appropriate share
1rom one or more 0S@S ! Capacity an2 energy charges 1or such
power shall 4e 4orne 4y the transmission licensee as part o1
its normati5e operation an2 maintenance expenses!
.1! #arget (5aila4ility 1or reco5ery o1 1ull transmission charges
1 "1* (C system 7 '3R
$ "$* 8GDC 4i,pole lin6s an2 8GDC 4ac6,to,4ac6 stations7 '.R
Note 1
Reco5ery o1 =xe2 charges 4elow the le5el o1 target a5aila4ility
shall 4e on pro rata 4asis! (t Fero a5aila4ility, no transmission
charges shall 4e paya4le!
Note $
#he target a5aila4ility shall 4e calculate2 in accor2ance with
proce2ure speci=e2 in (ppen2ix,000!
.$! Capital Cost7 "1* Su4<ect to pru2ence chec6 4y the Commission, the
actual expen2iture incurre2 on completion o1 the pro<ect shall 1orm the
4asis 1or 2etermination o1 =nal tari;! #he =nal tari; shall 4e 2etermine2
4ase2 on the a2mitte2 capital expen2iture actually incurre2 up to the 2ate
o1 commercial operation o1 the transmission system an2 shall inclu2e
capitalise2 initial spares su4<ect to a ceiling norm as 1!.R o1 original
pro<ect cost!
9ro5i2e2 that where the implementation agreement or the
transmission ser5ice agreement entere2 into 4etween the transmission
licensee an2 the long,term transmission customers pro5i2es a ceiling o1
actual expen2iture, the capital expen2iture shall not excee2 such ceiling
1or 2etermination o1 tari;!
"$* 0n case o1 the existing pro<ects, the pro<ect cost a2mitte2 4y the
Commission prior to 1!%!$% shall 1orm the 4asis 1or 2etermination o1
tari;!
Note
Scrutiny o1 the pro<ect cost estimates 4y the Commission shall 4e
limite2 to the reasona4leness o1 the capital cost, =nancing plan, interest
2uring construction, use o1 eHcient technology an2 such other matters 1or
2etermination o1 tari;!
.3! (22itional capitalisation7 "1* #he 1ollowing capital expen2iture within
the original scope o1 wor6 actually incurre2 a1ter the 2ate o1 commercial
operation an2 up to the cut o; 2ate may 4e a2mitte2 4y the Commission,
su4<ect to pru2ence chec67
1 "i* De1erre2 lia4ilitiesC
$ "ii* ?or6s 2e1erre2 1or executionC
"iii* 9rocurement o1 initial capital spares in the original scope o1
wor6s su4<ect to the ceiling norm speci=e2 in regulation .$C
1 "i5* +ia4ilities to meet awar2 o1 ar4itration or compliance o1 the
or2er or 2ecree o1 a courtC an2
$ "5* In account o1 change in law!
9ro5i2e2 that original scope o1 wor6 along with estimates o1
expen2iture shall 4e su4mitte2 along with the application 1or
pro5isional tari;!
9ro5i2e2 1urther that a list o1 the 2e1erre2 lia4ilities an2 wor6s
2e1erre2 1or execution shall 4e su4mitte2 along with the application
1or =nal tari; a1ter the 2ate o1 commercial operation o1 the
transmission system!
1 "$* Su4<ect to the pro5isions o1 clause "3* o1 this regulation, the
capital expen2iture o1 the 1ollowing nature actually incurre2 a1ter the cut
o; 2ate may 4e a2mitte2 4y the Commission, su4<ect to pru2ence chec67
$ "i* De1erre2 lia4ilities relating to wor6s-ser5ices within the original
scope o1 wor6C
3 "ii* +ia4ilities to meet awar2 o1 ar4itration or compliance o1 the
or2er or 2ecree o1 a courtC
% "iii* In account o1 change in lawC an2
. "i5* (ny a22itional wor6s-ser5ices which ha5e 4ecome necessary
1or eHcient an2 success1ul operation o1 the pro<ect, 4ut not inclu2e2 in the
original pro<ect cost!
$ "3* (ny expen2iture on minor items-assets 4rought a1ter the cut o;
2ate li6e tools an2 tac6les, personal computers, 1urniture, air,con2itioners,
5oltage sta4iliFers, re1rigerators, coolers, 1ans, #!G!, washing machine,
heat,con5ectors, mattresses, carpets, etc shall not 4e consi2ere2 1or
a22itional capitalisation 1or 2etermination o1 tari; with e;ect 1rom
1!%!$%!
Note
#he list o1 items is illustrati5e an2 not exhausti5e!
"%* 0mpact o1 a22itional capitalisation in tari; re5ision may 4e consi2ere2
4y the Commission twice in a tari; perio2, inclu2ing re5ision o1 tari; a1ter
the cut o; 2ate!
Note 1
(ny expen2iture a2mitte2 on account o1 committe2 lia4ilities within
the original scope o1 wor6 an2 the expen2iture 2e1erre2 on techno,
economic groun2s 4ut 1alling within the original scope o1 wor6 shall 4e
ser5ice2 in the normati5e 2e4t,eEuity ratio speci=e2 in regulation .%!
Note $
(ny expen2iture on replacement o1 ol2 assets shall 4e consi2ere2
a1ter writing o; the entire 5alue o1 the original assets 1rom the original
capital cost!
Note 3
(ny expen2iture a2mitte2 4y the Commission 1or 2etermination o1
tari; on account o1 new wor6s not in the original scope o1 wor6 shall 4e
ser5ice2 in the normati5e 2e4t,eEuity ratio speci=e2 in regulation .%!
Note %
(ny expen2iture a2mitte2 4y the Commission 1or 2etermination o1
tari; on reno5ation an2 mo2erniFation an2 li1e extension shall 4e ser5ice2
on normati5e 2e4teEuity ratio speci=e2 in regulation .% a1ter writing o;
the original amount o1 the replace2 assets 1rom the original capital cost!
.%! De4t,EEuity Ratio7 "1* 0n case o1 all pro<ects, 2e4teEuity ratio as on
the 2ate o1 commercial operation shall 4e 773 1or 2etermination o1 tari;!
?here eEuity employe2 is more than 3R, the amount o1 eEuity 1or the
purpose o1 tari; shall 4e limite2 to 3R an2 the 4alance amount shall 4e
consi2ere2 as the normati5e loan!
9ro5i2e2 that in case o1 the pro<ects where actual eEuity employe2
is less than 3R, the actual 2e4t an2 eEuity shall 4e consi2ere2 1or
2etermination o1 tari;!
"$* #he 2e4t an2 eEuity amounts arri5e2 at in accor2ance with clause "i*
shall 4e use2 in all calculations 1or calculating interest on loan, return on
eEuity, (25ance (gainst Depreciation an2 Foreign Exchange Rate
Gariation!
1 #ransmission Charges 7 #he tari; 1or transmission o1 electricity on
inter,state transmission system shall comprise o1 the reco5ery o1 annual
transmission charges consisting o1 the 1ollowing, namely7
1 .&! Computation o1 #ransmission Charges7 #he annual transmission
charges shall 4e compute2 on the 1ollowing 4asis, namely7
$ "i* 0nterest on loan Capital
3 "a* 0nterest on loan capital shall 4e compute2 loan wise on the loans
arri5e2 at in the manner in2icate2 in regulation .%!
% "4* #he loan outstan2ing as on 1!%!$% shall 4e wor6e2 out as the
gross loan as per regulation .% minus cumulati5e repayment as a2mitte2
4y the Commission up to 31!3!$%! #he repayment 1or the perio2
$%,' shall 4e wor6e2 out on normati5e 4asis!
. "c* #he transmission licensee shall ma6e e5ery e;ort to swap the
loan as long as it results in net 4ene=t to the long,term transmission
customers! #he costs associate2 with such swapping shall 4e 4orne 4y the
long,term transmission customers!
& "2* #he changes to the loan terms an2 con2itions shall 4e reAecte2
1rom the 2ate o1 such swapping an2 4ene=ts passe2 on to the
4ene=ciaries!
7 "e* 0n case o1 any 2ispute, any o1 the parties may approach the
Commission with proper application! 8owe5er, the long,term transmission
customers shall not withhol2 any payment as or2ere2 4y the Commission
to the transmission licensee 2uring pen2ency o1 any 2ispute relating to
swapping o1 loan!
3 "1* 0n case any moratorium perio2 is a5aile2 o1 4y the transmission
licensee, 2epreciation pro5i2e2 1or in the tari; 2uring the years o1
moratorium shall 4e treate2 as repayment 2uring those years an2 interest
on loan capital shall 4e calculate2 accor2ingly!
' "g* #he transmission licensee shall not ma6e any pro=t on account o1
swapping o1 loan an2 interest on loan!
1 "ii* Depreciation, inclu2ing (25ance (gainst Depreciation
"a* 0nterest on loan capitalC
"4* Depreciation, inclu2ing (25ance (gainst DepreciationC
"c* Return on eEuityC
"2* Iperation an2 maintenance expensesC an2
"e* 0nterest on wor6ing capital!
"a* Depreciation
For the purpose o1 tari;, 2epreciation shall 4e compute2 in the
1ollowing manner, namely7
1 "i* #he 5alue 4ase 1or the purpose o1 2epreciation shall 4e the
historical cost o1 the asset!
$ "ii* Depreciation shall 4e calculate2 annually 4ase2 on straight line
metho2 o5er the use1ul li1e o1 the asset an2 at the rates prescri4e2 in
(ppen2ix 00 to these regulations!
#he resi2ual li1e o1 the asset shall 4e consi2ere2 as 1R
an2 2epreciation shall 4e allowe2 up to maximum o1 'R o1
the historical capital cost o1 the asset! +an2 is not a
2eprecia4le asset an2 its cost shall 4e exclu2e2 1rom the
capital cost while computing 'R o1 the historical cost o1 the
asset! #he historical capital cost o1 the asset shall inclu2e
a22itional capitalisation on account o1 Foreign Exchange Rate
Gariation up to 31!3!$% alrea2y allowe2 4y the Central
@o5ernment-Commission!
"iii* In repayment o1 entire loan, the remaining 2eprecia4le
5alue shall 4e sprea2 o5er the 4alance use1ul li1e o1 the asset!
"i5* Depreciation shall 4e chargea4le 1rom the =rst year o1
operation! 0n case o1 operation o1 the asset 1or part o1 the
year, 2epreciation shall 4e charge2 on pro rata 4asis!
"4* (25ance (gainst Depreciation
0n a22ition to allowa4le 2epreciation, the transmission
licensee shall 4e entitle2 to (25ance (gainst Depreciation,
compute2 in the manner gi5en hereun2er7
((D N +oan repayment amount as per regulation .& "i* su4<ect
to a ceiling o1 1-1
th
o1 loan amount as per regulation .% minus
2epreciation as per sche2ule
9ro5i2e2 that (25ance (gainst Depreciation shall 4e permitte2
only i1 the cumulati5e repayment up to a particular year excee2s the
cumulati5e 2epreciation up to that yearC
9ro5i2e2 1urther that (25ance (gainst Depreciation in a year
shall 4e restricte2 to the extent o1 2i;erence 4etween cumulati5e
repayment an2 cumulati5e 2epreciation up to that year!
"iii* Return on EEuity 7
Return on eEuity shall 4e compute2 on the eEuity 4ase 2etermine2
in accor2ance with regulation .% an2 shall 4e T 1%R per annum!
9ro5i2e2 that eEuity in5este2 in 1oreign currency shall 4e
allowe2 a return up to the prescri4e2 limit in the same currency an2
the payment on this account shall 4e ma2e in 0n2ian Rupees 4ase2
on the exchange rate pre5ailing on the 2ue 2ate o1 4illing!
Explanation
#he premium raise2 4y the transmission licensee while issuing
share capital an2 in5estment o1 internal resources create2 out o1 1ree
reser5e o1 the existing transmission licensee, i1 any, 1or the 1un2ing o1 the
pro<ect, shall also 4e rec6one2 as pai2 up capital 1or the purpose o1
computing return on eEuity, pro5i2e2 that such premium amount an2
internal resources are actually utilise2 1or meeting the capital expen2iture
o1 the pro<ect an2 1orms part o1 the appro5e2 =nancial pac6age!
"i5* Iperation an2 /aintenance expenses
"a* Norms 1or operation an2 maintenance expenses per c6t,6m an2
per 4ay shall 4e as un2er, namely7
Norms 1or I>/ expenses per c6t,6m an2 per 4ay
:ear
$%,
.
$.,
&
$&,
7
$7,
3
$3,
'
I>/ expenses
"Rs! in la6h per
c6t,6m*
!$$7 !$3& !$%& !$.. !$&&
I>/ expenses
"Rs! in la6h per
4ay*
$3!1$ $'!$. 3!%$ 31!&3 3$!'
"4* #he total allowa4le I>/ expenses 1or a transmission
licensee shall 4e calculate2 4y multiplying the num4er o1 4ays
an2 c6t,6m o1 line length with the applica4le norms 1or the
I>/ expenses per 4ay an2 per c6t,Sm respecti5ely!
1 "5* 0nterest on ?or6ing Capital
1 "1* ?or6ing capital shall co5er7
$ "a* Iperation an2 maintenance expenses 1or one monthC
3 "4* /aintenance spares T 1R o1 the historical cost escalate2 T
&R per annum 1rom the 2ate o1 commercial operationC an2
% "c* Recei5a4les eEui5alent to two months o1 transmission charges
calculate2 on target a5aila4ility le5el!
$ "$* Rate o1 interest on wor6ing capital shall 4e on normati5e 4asis
an2 shall 4e eEual to the short,term 9rime +en2ing Rate o1 State Dan6 o1
0n2ia as on 1!%!$% or on 1
st
(pril o1 the year in which the pro<ect or part
thereo1 "as the case may 4e* is 2eclare2 un2er commercial operation,
whiche5er is later! #he interest on wor6ing capital shall 4e paya4le on
normati5e 4asis notwithstan2ing that the transmission licensee has not
ta6en wor6ing capital loan 1rom any outsi2e agency!
1 9ayment o1 #ransmission Charges 7 Full annual transmission charges
shall 4e reco5era4le at the target a5aila4ility stipulate2 in regulation .1!
9ayment o1 transmission charges 4elow the target a5aila4ility shall 4e on
pro rata 4asis! #he transmission charges shall 4e calculate2 on monthly
4asis!
$ Sharing o1 charges 1or intra,regional assets7 0n case o1 more than
one long,term transmission customer o1 the regional transmission system,
the monthly transmission charges le5ia4le on each long,term transmission
customer shall 4e compute2 as per the 1ollowing 1ormula7
#ransmission Charges 1or intra,regional system paya4le 1or a
month 4y a long,term transmission customer o1 that transmission
system
N X 5P
?here #Ci N (nnual #ransmission Charges 1or the i
th
pro<ect in the
region compute2 in accor2ance with regulation .&
n N Num4er o1 pro<ects in the region
#RSC N #otal reco5ery o1 transmission charges 1or the
month 1rom Short,term transmission customers 1or
the regional transmission system in accor2ance with
the Central Electricity Regulatory Commission "Ipen
(ccess in 0nter,State #ransmission* Regulations,
$%!
C+ N (llotte2 #ransmission Capacity to the long,term
transmission customer
SC+ N Sum o1 the (llotte2 #ransmission Capacities to all the
long,term transmission customers o1 the regional
transmission system!
59. Sharing of charges for inter-regional assets: #he transmission
charges o1 the inter,regional assets, inclu2ing 8GDC system , a1ter
2e2ucting the reco5ery 1rom the short,term customers, shall 4e share2 in
the ratio o1 .7. 4y the long,term transmission customers o1 the
regional transmission system o1 two contiguous regions in accor2ance
with the 1ollowing 1ormula7
#ransmission Charges paya4le 1or a month 4y a long term,
customer within the region 1or the inter,regional assets
17i
12
Q
3 T+SC
Y
n
iX1
5 70
S70
connecte2 to that region
?here
#C< N (nnual #ransmission Charges 1or the particular inter,regional
asset connecte2 to the region compute2 in accor2ance with
regulation .&,
RSC< N Reco5ery o1 #ransmission Charges 1or the month 1rom the
short,term customers 1or the particular inter,regional asset
connecte2 to the region in accor2ance with the Central Electricity
Regulatory Commission "Ipen (ccess in 0nter,State #ransmission*
Regulations, $%,
C+ N (llotte2 #ransmission Capacity to the long,term transmission
customer in the regional transmission system in which it is
locate2,
SC+ N Sum o1 the (llotte2 #ransmission Capacities to all the long,term
transmission customers o1 the regional transmission system in
the regional transmission system in which it is locate2!
&! 0ncenti5e 7 "1* #he transmission licensee shall 4e entitle2 to incenti5e
on achie5ing annual a5aila4ility 4eyon2 the target a5aila4ility as per
regulation .1, in accor2ance with the 1ollowing 1ormula7
0ncenti5e
N
(nnual #ransmission Charges x X(nnual a5aila4ility
achie5e2
#arget (5aila4ilityY - #arget (5aila4ility C
?here,
(nnual transmission Charges shall correspon2 to intra,regional assets or
1or a particular inter,regional asset, as the case may 4e!
9ro5i2e2 that no incenti5e shall 4e paya4le a4o5e the a5aila4ility o1
''!7.R 1or (C system an2 '3!.R 1or 8GDC system!
"$* 0ncenti5e shall 4e share2 4y the long,term customers in the ratio
o1 their a5erage allotte2 transmission capacity 1or the year!
1 Re4ate 7 For payment o1 4ills o1 transmission charges through letter
o1 cre2it on presentation, a re4ate o1 $R shall 4e allowe2! ?here
payments are ma2e su4seEuently through opening o1 letter o1 cre2it or
otherwise, 4ut within a perio2 o1 one month o1 presentation o1 4ills 4y the
#ransmission licensee, a re4ate o1 1R shall 4e allowe2!
$ +ate payment surcharge 7 0n case the payment o1 4ills o1
transmission charges 4y the 4ene=ciary "s* is 2elaye2 4eyon2 a perio2 o1
1 month 1rom the 2ate o1 4illing a late payment surcharge at the rate o1
1!$.R per month shall 4e le5ie2 4y the transmission licensee!
"(!S! S(C8(N*
SECRE#(R:
Tari88 Filing Forms $T5ermal* $('#)#(&&4*
"pen Access in Inter3state Transmission J CE+C $)&#&%#(&&4* < $%st
Amendment* +eg/lations; (&&B dated (%st Fe7r/ary; (&&B
CENT+A! E!ECT+ICIT1 +E2,!AT"+1 C"00ISSI"N
NEW DE!DI
N"TIFICATI"N
No. 0!)(25:4;!2..3 2ated the 3.
th
Fanuary 2..4
In eAercise of owers conferred by Section 1)* of the +'ectricity Act< 2..3 and a''
other owers enab'in& in this beha'f< and after revious ub'ication< the 7entra' +'ectricity
#e&u'atory 7o$$ission< hereby $a4es the fo''owin& re&u'ations< na$e'yC!
S5ort Title and Commencement
1. :i; 1hese re&u'ations $ay be ca''ed the 7entra' +'ectricity #e&u'atory
7o$$ission :9en Access in Inter!state 1rans$ission; #e&u'ations< 2..4.
:ii; :a; 1hese re&u'ations< eAcet 7'ause :iii; of #e&u'ation " sha'' co$e into
force fro$ the date of their ub'ication in the 9fficia' -aEetteJ
:b; 7'ause :iii; of #e&u'ation " of these re&u'ations sha'' co$e into force
after eAiry of ,. days fro$ the date of ub'ication of these re&u'ations in the
9fficia' -aEette and durin& this eriod of ,. days< reservation for short!ter$
custo$ers sha'' be done on first!co$e!first!served basisC
Provided that the eriod for such reservation sha'' not eAceed the
eriod of ,. days fro$ the date of ub'ication of these re&u'ations in the
9fficia' -aEette.
De8initions
2. In these re&u'ations< un'ess the conteAt otherwise re=uires< !
:a; RActR $eans the +'ectricity Act< 2..3 :3" of 2..3;J
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
A%ended #ide notification No!&'()2*+*,)2003'-ER- dated 2.
st
Fe/ruary, 200*
+A%end%ents s"all /e effecti#e fro% .!0!200*,
:b; PA''otted 1rans$ission 7aacityQ $eans the ower transfer in M3 between
the secified oint:s; of in>ection and oint:s; of drawa' a''owed to a 'on&!
ter$ custo$er on the inter!state trans$ission syste$ under nor$a'
circu$stances and the eAression Ra''ot$ent of trans$ission caacityR sha'' be
construed accordin&'yJ
:c; R7o$$issionR $eans 7entra' +'ectricity #e&u'atory 7o$$ission referred to
in Section )" of the ActJ
:ca; P2ayQ $eans a day startin& at ..... hours and endin& at 24... hoursJ
:d; R2irect custo$erR $eans a erson direct'y connected to the syste$ owned or
oerated by the 7entra' 1rans$ission ?ti'ityJ
:e; R+$bedded custo$erR $eans a erson who is not a direct custo$erJ
:f; P+Aistin& beneficiaryQ $eans a erson havin& fir$ a''ocation fro$ a centra'
ower &eneratin& station on the date of co$in& into force of these re&u'ations
and who has entered into Bu'4 Power 1rans$ission A&ree$ent with the
7entra' 1rans$ission ?ti'ityJ
:&; R-rid 7odeR $eans the -rid 7ode secified by the 7o$$ission under 7'ause
:h; of sub!section :1; of Section ), of the Act and inc'udes the Indian
+'ectricity -rid 7ode a'icab'e on the date of co$$ence$ent of these
re&u'ationsJ
:&a; RMonthR $eans a ca'endar $onth as er the British ca'endarJ
:h; RNoda' a&encyR $eans the noda' a&ency defined in re&u'ation * of these
re&u'ationsJ
:i; R9en access custo$erR $eans a consu$er er$itted by the State
7o$$ission to receive su'y of e'ectricity fro$ a erson other than
distribution 'icensee of his area of su'y< or a &eneratin& co$any :inc'udin&
cative &eneratin& 'ant; or a 'icensee< who has avai'ed of or intends to avai'
of oen accessJ
:>; P#eserved 1rans$ission 7aacityQ $eans the ower transfer in M3 between
the secified oint:s; of in>ection and oint:s; of drawa' a''owed to a short!
ter$ custo$er on the trans$ission syste$ deendin& on avai'abi'ity of
trans$ission caacity and the eAression Rreservation of trans$ission
caacityR sha'' be construed accordin&'yJ
:4; P1rans$ission 7usto$erQ $eans any erson< inc'udin& oen access custo$er
usin& trans$ission syste$ of a trans$ission 'icenseeJ
:4a; Pwor4in& dayQ $eans a day on which ban4s are oen for businessJ
:'; 3ords and eAressions used and not defined in these re&u'ations but defined in
the Act or the -rid 7ode< sha'' have the $eanin& assi&ned to the$ under the
Act or the -rid 7ode< as the case $ay be.
E>tent o8 Application
3. 1hese re&u'ations sha'' a'y for access to inter!state trans$ission syste$.
Categorisation o8 Transmission C/stomers
4. :i; 1he trans$ission custo$ers sha'' be divided into two cate&ories< na$e'yC !
:a; 0on&!ter$ custo$ers< and
:b; Short!ter$ custo$ers.
:ii; 1he ersons avai'in& or intendin& to avai' access to the inter!state trans$ission syste$
for a eriod of twenty five years or $ore sha'' be the 'on&!ter$ custo$ersC
Provided that the eAistin& beneficiaries of a re&iona' trans$ission syste$
owned or oerated by the 7entra' 1rans$ission ?ti'ity sha'' be dee$ed to be the 'on&!
ter$ custo$ers of the articu'ar re&iona' syste$ owned or oerated by the 7entra'
1rans$ission ?ti'ity for the urose of these re&u'ations.
:iii; 1he trans$ission custo$ers other than the 'on&!ter$ custo$ers sha'' be the short!ter$
custo$ersC
Criteria 8or allo:ing transmission access
5. :i; 1he 'on&!ter$ access sha'' be a''owed in accordance with the trans$ission
'annin& criterion stiu'ated in the -rid 7odeJ
:ii; 1he short!ter$ access sha'' be a''owed< if re=uest can be acco$$odated by uti'isin&C !
:a; Inherent desi&n $ar&insJ
:b; Mar&ins avai'ab'e due to variation in ower f'owsJ and
:c; Mar&ins avai'ab'e due to in!bui't sare trans$ission caacity created to
cater to future 'oad &rowth.
Criteria 8or Allotment and +eservation o8 Transmission Capacity
". :i; A''ot$ent riority of a 'on&!ter$ custo$er sha'' be hi&her than
reservation riority of a short!ter$ custo$er.
:ii; 3ithin a cate&ory :'on&!ter$ or short!ter$;< there sha'' be no discri$ination
between oen access custo$ers and se'f!use by an inte&rated uti'ity 'i4e
the State +'ectricity Board.
:i; In case of inter!re&iona' transactions< reservation of trans$ission caacity to
the short!ter$ custo$er $ay be reduced or cance''ed by the #e&iona' 0oad
2esatch 7entre< if the 7entra' -overn$ent a''ocates ower fro$ the 7entra'
-eneratin& Station or Stations in a re&ion to a erson in another re&ion and
such a''ocation< in the oinion of the #e&iona' 0oad 2esatch 7entre< cannot
otherwise be i$'e$ented due to con&estion in the inter!re&iona' 'in4. If the
#e&iona' 0oad 2esatch 7entre decides to reduce or cance' trans$ission
caacity reserved for a short!ter$ custo$er under this c'ause< it sha''< as soon
as ossib'e< inti$ate the short!ter$ custo$er concerned of its decision to
reduce or cance' trans$ission caacity.
:ii; 1he a'ications for &rant of short!ter$ access sha'' be rocessed on'y if such
short!ter$ access is co$$encin& in the first $onth to the fourth $onth and is
not endin& beyond the fourth $onth< ta4in& the $onth in which a'ication is
$ade as the first $onth.
:iii; 1he a'ications for &rant of short!ter$ access received in a $onth for oen
access co$$encin& and ter$inatin& in the $onth in which the a'ication is
$ade or received after the nineteenth day of a $onth for oen access
co$$encin& and ter$inatin& in the fo''owin& $onth sha'' be treated on first!
co$e!first!served basis< and short!ter$ access sha'' be &ranted sub>ect to
avai'abi'ity of the trans$ission caacity.
:iv; A'' a'ications for short!ter$ access< other than the a'ications for short!
ter$ access to be rocessed on first!co$e!first!served basis in accordance
with c'ause :v; above< received u to the nineteenth day of a $onth sha'' be
considered to&ether on the twentieth day of that $onth for advance reservation
and sha'' be rocessed in the $anner &iven hereunder< na$e'yC!
:a; 1he a'ications sha'' be ana'ysed to chec4 for con&estion on any of the
trans$ission corridors to be used for short!ter$ access.
:b; In case the noda' #e&iona' 0oad 2esatch 7entre does not anticiate
con&estion on any of the trans$ission corridors invo'ved< the a'icants
sha'' be &ranted short!ter$ access for the =uantu$ and duration sou&ht<
'atest by the twenty!fifth day of the $onth.
:c; If in the oinion of the noda' #e&iona' 0oad 2esatch 7entre< &rant of
short!ter$ access to a'' the a'icants is 'i4e'y to 'ead to con&estion in one
or $ore of the trans$ission corridors to be used for short!ter$ access for
any duration< it sha'' infor$ the a'icants of its oinion accordin&'y and
the reasons therefor on or before the twenty!third day of the $onth.
:d; 9n receit of inti$ation in accordance with sub!c'ause :c; above< an
a'icant $ay reduce its re=uire$ent of trans$ission caacity durin& the
eriod of con&estion or ot for access on'y for the duration when no
con&estion is anticiated and in such a situation< he sha'' infor$ the noda'
#e&iona' 0oad 2esatch 7entre accordin&'y by the twenty!fifth day of the
$onth.
:e; If the noda' #e&iona' 0oad 2esatch 7entre sti'' anticiates con&estion in
one or $ore of the trans$ission corridors to be used for short!ter$ access<
it sha'' invite e'ectronic!bids for reservation of trans$ission caacity of the
con&ested trans$ission corridor in accordance with #e&u'ation 14 of these
re&u'ations on the twenty!siAth day of the $onth. Non!articiation of an
a'icant in the biddin& rocess sha'' be construed that he is no 'on&er
interested in oen access and his a'ication sha'' not be rocessed.
:v; In the event of a reserved trans$ission corridor subse=uent'y beco$in& fu''y
or art'y vacant for certain duration in a $onth< the #e&iona' 0oad 2esatch
7entre sha'' dis'ay this infor$ation in ub'ic do$ain on its website.
:vi; +Acet as rovided in c'ause :iii;< once oen access has been &ranted< the 'on&!
ter$ custo$er or the short!ter$ custo$er sha'' not be re'aced by any other
erson on account of a subse=uent re=uest received fro$ such other erson.
:vii; 1he #e&iona' 0oad 2esatch 7entres sha'' 'ay down a detai'ed rocedure for
reservation of trans$ission caacity to the short!ter$ custo$ers after obtainin&
rior arova' of the 7o$$ission< which sha'' inc'ude the detai'ed rocedure
for invitin& bids< advance reservation< reservation on first!co$e!first!served
basis< usa&e of a'ternate route throu&h other re&ions if direct inter!re&iona'
'in4s between two re&ions are con&ested or constrained and any other residua'
$atter. Any further revision of the rocedure sha'' be carried out on'y after
obtainin& rior arova' of the 7o$$ission.
Declaration o8 !ong3term "pen Access
). +very trans$ission 'icensee sha'' dec'are the eAistin& 'on&!ter$ custo$ers usin& its
trans$ission syste$ :inc'udin& se'f!use and use by unbund'ed a&encies which were
revious'y inte&rated; either on its website or on the website of the #e&iona' 0oad 2esatch
7entre or the State 0oad 2esatch 7entre concerned 'atest by the thirtieth day of Fune 2..5.
Nodal Agency
*. :i; 1he noda' a&ency for arran&in& the 'on&!ter$ trans$ission access sha'' be the
7entra' 1rans$ission ?ti'ity if itNs syste$ is used< otherwise the noda' a&ency
sha'' be trans$ission 'icensee in whose syste$ the oint of drawa' of
e'ectricity is situateJ
:ii; 1he noda' a&ency for the short!ter$ trans$ission access sha'' be the #e&iona' 0oad
2esatch 7entre of the re&ion where oint of drawa' of e'ectricity is situate.
Proced/re 8or !ong3Term C/stomer
,. :i; An a'ication for 'on&!ter$ access sha'' be sub$itted to the noda' a&encyJ
:ii; 1he a'ication sha'' contain the detai's< such as caacity needed< oint:s; of
in>ection< oint:s; of drawa'< duration of avai'in& oen access< ea4 'oad< avera&e 'oad
and such other additiona' infor$ation that $ay be secified by the noda' a&encyC
Provided that the noda' a&ency sha'' issue necessary &uide'ines< rocedure and
a'ication for$s within 3. days of co$$ence$ent of these re&u'ations.
:iii; 1he a'ication sha'' be acco$anied by a non!refundab'e a'ication fee of
#s one 'a4h ayab'e in the na$e and in the $anner to be decided by the noda' a&encyJ
:iv; Based on syste$ studies conducted in consu'tation with other a&encies
invo'ved inc'udin& other trans$ission 'icensees< the noda' a&ency sha''< within 3.
days of receit of the a'ication< inti$ate to the a'icant whether or not the 'on&!
ter$ access can be a''owed without further syste$ stren&thenin&C
Provided that where the 'on&!ter$ access can be a''owed without further
syste$ stren&thenin&< this sha'' be a''owed i$$ediate'y after enterin& into
co$$ercia' a&ree$ents.
:v; If< in the oinion of the noda' a&ency< further syste$ stren&thenin& is essentia'
before rovidin& the 'on&!ter$ access< the a'icant $ay re=uest the noda' a&ency to
carry out the syste$ studies and re'i$inary investi&ation for the urose of cost
esti$ates and co$'etion schedu'e for syste$ stren&thenin&J
:vi; 1he noda' a&ency sha'' carry out the studies i$$ediate'y on receit of re=uest
fro$ the a'icant under c'ause :v; above and inti$ate resu'ts of the studies within ,.
days of receit of re=uest fro$ the a'icantJ
:vii; 1he a'icant sha'' rei$burse the actua' eAenditure incurred by the noda'
a&ency for syste$ stren&thenin& studiesC
Provided that the fee of ruees one 'a4h aid by the a'icant sha'' be ad>usted
a&ainst the actua' eAenditure to be rei$bursed by the a'icant.
1.. 1he a''ot$ent of trans$ission caacity to a 'on&!ter$ custo$er $ay be re'in=uished
or transferred to any other 'on&!ter$ custo$er in accordance with re&u'ation 12 of these
re&u'ations.
/l9 Po:er Transmission Agreement
11. A 'on&!ter$ custo$er sha'' enter into Bu'4 Power 1rans$ission A&ree$ent with the
trans$ission 'icensee for use of inter!state trans$ission syste$.
E>it "ption
12. :i; A 'on&!ter$ custo$er sha'' not re'in=uish or transfer his ri&hts and ob'i&ations
secified in the Bu'4 Power 1rans$ission A&ree$ent< without rior arova' of the
7o$$ission.
:ii; 1he re'in=uish$ent or transfer of ri&hts and ob'i&ations by a 'on&!ter$
custo$er sha'' be sub>ect to ay$ent of co$ensation< as $ay be deter$ined by the
7o$$ission.
Proced/re 8or S5ort3Term C/stomer
13. :i; A short!ter$ custo$er sha'' sub$it an a'ication for trans$ission access to
the noda' #e&iona' 0oad 2esatch 7entreJ
:ii; 1he a'ication sha'' contain the detai's< such as caacity needed< oint or
oints of in>ection< oint or oints of drawa'< duration for avai'in& of oen access<
ea4 'oad< avera&e 'oad and such other additiona' infor$ation that $ay be 'aid down
by the #e&iona' 0oad 2esatch 7entreJ
:iii; 1he a'ication sha'' be acco$anied by a non!refundab'e a'ication fee of #uees
five thousand on'yJ
Provided that in case of a'ication for access on the date of the a'ication or
on the fo''owin& day< the a'ication fee $ay be deosited within neAt three wor4in&
days of $a4in& of a'ication.
:iv; 1he reserved trans$ission caacity sha'' not be transferred by a short!ter$ custo$er
to any other custo$er.
idding Process 8or S5ort3term Access
13A. :i; 1he f'oor rice for biddin& sha'' be the S1Y#A1+ deter$ined in accordance
with #e&u'ation 1" of these re&u'ations.
:i; 1he bidders sha'' =uote rice in ter$s of the f'oor rice.
:ii; No bidder sha'' be a''owed to =uote rice which is $ore than five ti$es the
f'oor rice in case of intra!re&iona' trans$ission syste$ and $ore than a two
and a ha'f ti$es the f'oor rice in case of inter!re&iona' trans$ission syste$.
:iii; #eservation of trans$ission caacity sha'' be $ade in decreasin& order of the
rice =uoted.
:iv; In case of e=ua' rice =uoted by two or $ore bidders< the reservation of
trans$ission caacity sha'' be $ade pro rata to the trans$ission caacity
sou&ht to be reserved.
:v; 1he short!ter$ custo$er &ettin& reservation for caacity 'ess than the caacity
sou&ht by hi$ sha'' ay the char&es =uoted by hi$ and the short!ter$
custo$ers &ettin& trans$ission caacity reservation e=ua' to the caacity
sou&ht to be reserved< sha'' ay the char&es =uoted by the 'ast custo$er &ettin&
reservation of trans$ission caacity.
Non3,tilisation o8 reserved transmission capacity 7y S5ort3term C/stomer
14. :i; In case a short!ter$ custo$er is unab'e to uti'ise< fu'' or substantia' art of the
reserved trans$ission caacity< he sha'' infor$ the noda' #e&iona' 0oad
2esatch 7entre a'on& with reasons for his inabi'ity to uti'ise the reserved
trans$ission caacity and $ay surrender the reserved trans$ission caacity.
:ii; Notwithstandin& any thin& contained in these re&u'ations< the #e&iona' 0oad
2esatch 7entre $ay on its own reduce or cance' the reserved trans$ission
caacity of a short!ter$ custo$er when such a short!ter$ custo$er fre=uent'y
underuti'ises the reserved trans$ission caacityC
Provided that the reserved trans$ission caacity sha'' not be reduced or
cance''ed under this c'ause without a rior notice to the short!ter$ custo$er
whose reserved trans$ission caacity is sou&ht to be reduced or cance''ed.
:iii; 1he short!ter$ custo$er< who has surrendered the reserved trans$ission
caacity under c'ause :i; or whose reserved trans$ission caacity has been
reduced or cance''ed under c'ause :ii;< sha'' bear the trans$ission char&es and
the oeratin& char&e based on the ori&ina' reserved trans$ission caacity for
seven days or the eriod of reservation surrendered or reduced or cance''ed< as
the case $ay be< whichever eriod is shorter.
Note
8or the urose of this c'ause< the eAression Poeratin& char&eQ sha'' have the
sa$e $eanin& as assi&ned to it under #e&u'ation 1).
:iv; 1he trans$ission caacity beco$in& avai'ab'e as a resu't of surrender by the
short!ter$ custo$er under c'ause :i; or as a resu't of reduction or cance''ation
of the reserved trans$ission caacity by the #e&iona' 0oad 2esatch 7entre
under c'ause :ii;< $ay be reserved for any other short!ter$ custo$er in
accordance with these re&u'ations.
Treatment o8 E>isting Transactions
15. Any erson &ranted oen access before co$$ence$ent of the 7entra' +'ectricity
#e&u'atory 7o$$ission :9en Access in Inter!state 1rans$ission; #e&u'ations< :8irst
A$end$ent; #e&u'ations< 2..5 sha'' not be disturbed ti'' eAiry of the eriod for which oen
access has been &ranted.
Transmission C5arges
1". 1he trans$ission char&es for use of the trans$ission syste$ of the trans$ission
'icensee for inter!state trans$ission sha'' be re&u'ated as under< na$e'yC!
:i; 1he annua' trans$ission char&es ayab'e by a 'on&!ter$ custo$er for use of
the trans$ission syste$ sha'' be deter$ined in accordance with the ter$s and
conditions of tariff notified by the Aroriate 7o$$ission fro$ ti$e to ti$e
and after deductin& the ad>ustab'e revenue received fro$ the short!ter$
custo$ers< these char&es sha'' be shared by the 'on&!ter$ custo$ers.
:ii; 1he trans$ission char&es ayab'e by a short!ter$ custo$er sha'' be ca'cu'ated
in accordance with the fo''owin& $ethodo'o&y< na$e'yC!
$a* Intra3regional system
S1Y#A1+ X ..25 A T1S7( AvY7APU( 3"5
$7* Inter3regional system
S1Y#A1+ X ..5. T 1S7( 7I#U(3"5
3hereC
S1Y#A1+ is the rate for short!ter$ custo$er in #s er M3 er day.
Note
S1Y#A1+ sha'' be ca'cu'ated and a'ied for each re&iona' trans$ission
syste$< inter!re&iona' trans$ission 'in4< and trans$ission syste$ of the State
1rans$ission ?ti'ity or any other trans$ission 'icensee for$in& art of the
inter!state trans$ission syste$.
R1S7R $eans the annua' trans$ission char&es or annua' revenue re=uire$ent
on account of the trans$ission syste$ for the revious financia' year as
deter$ined by the Aroriate 7o$$ission.
RAvY7APR $eans the avera&e caacity in M3 served by the intra!re&iona'
trans$ission syste$ of the trans$ission 'icensee in the revious financia' year
and sha'' be the su$ of the &eneratin& caacities connected to the trans$ission
syste$ and contracted caacities of other 'on&!ter$ transactions hand'ed by
the syste$ of the trans$ission 'icensee.
P7I#Q $eans the trans$ission caacity of the inter!re&iona' syste$
:iii; 1he trans$ission char&es ayab'e by a short!ter$ custo$er in case of
uncon&ested trans$ission corridor sha'' be 'evied as under< na$e'y C!
:a; ? to " hours in a day in one b'oc4 C 1(4
th
of S1Y#A1+
:b; More than " hours and u to 12 hours in a day in one b'oc4 C 1(2 of
S1Y#A1+
:c; More than 12 hours and uto 24 hours in a day in one b'oc4 C e=ua' to S1 Y
#A1+
:iv; Non!deter$ination of annua' trans$ission char&es for the trans$ission syste$
sha'' not be a &round for de'ay in rovidin& short!ter$ access and where annua'
trans$ission char&es for any trans$ission 'icensee are not deter$ined under the
Act< S1 Y #A1+ a'icab'e for the syste$ owned by the 7entra' 1rans$ission
?ti'ity of the re&ion in which the syste$ of trans$ission 'icensee is situate< sha''
be a'ied for deter$ination of the char&es for the short!ter$ custo$er.
:ii; +very trans$ission 'icensee sha'' dec'are S1 Y #A1+< ca'cu'ated in accordance
with c'ause :ii; above< which sha'' re$ain fiAed for a eriod of one year.
:vi; If the trans$ission syste$ be'on&s to the 7entra' 1rans$ission ?ti'ity or State
1rans$ission ?ti'ity< 25B of the char&es co''ected fro$ the short!ter$
custo$er for use of its intra!re&iona' trans$ission syste$ and 12.5B of the
char&es co''ected fro$ the short!ter$ custo$ers for use of its inter!re&iona'
syste$ sha'' be retained by the 7entra' 1rans$ission ?ti'ity or State
1rans$ission ?ti'ity and the re$ainin& art of these char&es sha'' be ad>usted
towards reduction in the trans$ission char&es ayab'e by the 'on&!ter$
custo$ers.
:vii; 9en access char&es secified in this re&u'ation sha'' not be a'icab'e for the inter!
state trans$ission syste$ in North!+astern #e&ion. 1he char&es for use of the inter!state
trans$ission in this re&ion sha'' be re&u'ated under the searate orders of the 7o$$ission
issued fro$ ti$e to ti$e.
9eratin& 7har&e
%E# $i* A composite operating c5arge K +s#);&&&J3 per day or part o8 t5e day and K
+s %;&&&J3 per day or part o8 t5e day s5all 7e paya7le 7y a s5ort3term c/stomer
8or eac5 transaction to t5e eac5 o8 t5e +egional !oad Despatc5 Centre involved
and State !oad Despatc5 Centre respectively#
Note 1
T5e operating c5arge incl/des 8ee 8or sc5ed/ling and system operation;
8ee 8or a88ecting revisions in sc5ed/le on 7ona8ide gro/nds and collection and
dis7/rsement c5arges#
Note 2
T5e operating c5arge collected 7y t5e +egional !oad Despatc5 Centre in
accordance :it5 Cla/se $i* s5all 7e in addition to t5e 8ees and c5arges speci8ied
7y t5e Commission /nder s/73section $4* o8 Section (C o8 t5e Act#
+A'anation
9eratin& char&e sha'' be ayab'e by a &eneratin& co$any when it is &ranted short!
ter$ access under these re&u'ations.
,nsc5ed/led Inter3c5ange $,I* c5arges
1*. :i; 1he $is$atch between the schedu'ed and the actua' drawa' at drawa' oint:s;
and schedu'ed and the actua' in>ection at in>ection oint:s; sha'' be $et fro$ the &rid
and sha'' be &overned by ?I ricin& $echanis$ a'icab'e to the inter!state
transactionsJ
:ii; A searate bi'' for ?I char&es sha'' be issued to the direct custo$ers and in
case of the e$bedded custo$ers< a co$osite ?I bi'' for the State as a who'e sha'' be
issued< the se&re&ation for which sha'' be done at the State 'eve'.
+eactive Energy C5arges
1,. 1he ay$ent and receit of the reactive ener&y char&es by the direct custo$ers on
account of oen access sha'' be ca'cu'ated in accordance with the sche$e a'icab'e to
transactions invo'vin& inter!state trans$ission aroved by the 7o$$ission fro$ ti$e to
ti$e.
2.. 1he reactive ener&y char&es ayab'e to or receivab'e by the State +'ectricity Board or
the State 1rans$ission ?ti'ity sha'' be aid to or received fro$ the oo' by the State
+'ectricity Board or the State 1rans$ission ?ti'ity concerned and sha'' not be aortioned to
the e$bedded custo$ers.
21. 1he reactive ener&y drawa's and in>ections by the e$bedded custo$ers sha'' be
&overned by the re&u'ations a'icab'e within the State concerned.
Time3sc5ed/le 8or Processing Application
22 :i; In addition to the ti$e schedu'e rescribed under re&u'ation " for rocessin& of
a'ications for advance reservation< as far as racticab'e< the fo''owin& ti$e
schedu'e sha'' be adhered to by the resective noda' a&ency for rocessin& of the
a'ication for &rant of access< na$e'yC!
S#No# Type o8 serviceJactivity 0a>im/m Processing
time
%# S5ort3term Service :for the eriod to be treated on first!
co$e!first!served basis;
? to one wee4 2 days
More than a wee4 3 days
(# !ong3term Service
Inti$ation re&ardin& feasibi'ity of access without syste$
stren&thenin&
3. days
Inti$ation of resu'ts of studies for syste$ stren&thenin&
with cost esti$ates and co$'etion schedu'e
,. days
$ii* Day a5ead transactions6
:a; 1he advance ay$ent of trans$ission char&es< oeratin& char&e and
a'ication fee sha'' not be insisted uon. 1hese ay$ents can be $ade
within 3 wor4in& days of $a4in& of a'ication.
:b; A co$osite re=uest for oen access and schedu'in& sha'' be sent to the
noda' #e&iona' 0oad 2esatch 7entre throu&h the State 0oad 2esatch
7entre concerned 'atest by 3... PM. 1he noda' #e&iona' 0oad 2esatch
7entre sha'' ta4e stes to incororate the re=uest for oen access in the
schedu'es to be issued by the #e&iona' 0oad 2esatch 7entres concerned<
if the re=uest can be acco$$odated without causin& con&estion.
:c; A co$osite re=uest for oen access and schedu'in& to uti'ise sur'uses
4nown after issuance of the first desatch schedu'e by #e&iona' 0oad
2esatch 7entres at 5... PM< $ust be sub$itted to the noda' #e&iona'
0oad 2esatch 7entre 'atest by 1.... PM or referab'y ear'ier. 1he noda'
#e&iona' 0oad 2esatch 7entre sha'' endeavour to incororate the sa$e in
the revised desatch schedu'e to be issued by the #e&iona' 0oad 2esatch
7entres concerned< if the re=uest can be acco$$odated without causin&
con&estion.
:iii; Same Day transactions
:a; 1he advance ay$ent of trans$ission char&es< oeratin& char&e and
a'ication fee sha'' not be insisted uon. 1hese ay$ents can be $ade
within 3 wor4in& days of $a4in& of a'ication.
:b; In the event of e$er&ency< the beneficiaries(buyin& uti'ity $ay 'ocate a
source of ower to $eet short!ter$ e$er&ency re=uire$ent on the
sa$e day and forward re=uest for oen access to the noda' #e&iona'
0oad 2esatch 7entre throu&h the concerned State 0oad 2esatch
7entre. 1he #e&iona' 0oad 2esatch 7entres sha'' endeavour to
acco$$odate such e$er&ency re=uests as soon as and to the eAtent
ractica''y feasib'e.
C/rtailment Priority
23. 3hen because of trans$ission constraints or otherwise< it beco$es necessary to
curtai' the trans$ission service of the trans$ission custo$ers< the short!ter$ custo$ers sha''
be curtai'ed first fo''owed by the 'on&!ter$ custo$ersC
Provided that within a cate&ory< a'' users sha'' have sa$e curtai'$ent riority and
sha'' be curtai'ed ro rata to the a''otted trans$ission caacity in the case of 'on&!ter$
custo$ers and the reserved trans$ission caacity in the case of short!ter$ custo$ers.
Transmission C5arges 8or s5ort3term c/stomers in case o8 c/rtailment
23A. In case of curtai'$ent of $ore than 5.B of the reserved trans$ission caacity by the
#e&iona' 0oad 2esatch 7entre on any articu'ar day on account of trans$ission constraints<
the trans$ission char&es for that day sha'' be ayab'e by the short!ter$ custo$ers on pro rata
basis in accordance with the trans$ission caacity actua''y rovided.
Commercial Conditions
24. :i; S5ort3term c/stomers
:a; 1he trans$ission char&es and oeratin& char&e sha'' be aid to the
noda' #e&iona' 0oad 2esatch 7entre on $onth'y basis.
:b; Advance ay$ent for one $onth or eriod of access<
whichever eriod is shorter< sha'' be $ade within three wor4in& days of
&rant of access.
:c; Subse=uent ay$ents sha'' be $ade at 'east one day before be&innin& of
neAt $onth.
:d; Pay$ent sha'' be $ade either throu&h che=ue(de$and draft ayab'e at
the 'ocation of the noda' #e&iona' 0oad 2esatch 7entre or throu&h
e'ectronic transfer.
:e; If duration of access &ranted eAceeds one $onth< the short! ter$
custo$er sha'' rovide an irrevocab'e bac4 u 'etter of credit within
seven days of co$$ence$ent of oen access.
:f; In case of non!receit of ay$ent within the eriod secified in c'ause
:b; or :c; above< the noda' #e&iona' 0oad 2esatch 7entre sha''< in its
discretion< have the ri&ht to invo4e the 'etter of credit or cance' the
reserved trans$ission caacity.
:ii; !ong3term c/stomers
1he co$$ercia' conditions for the 'on&!ter$ custo$er sha'' be sa$e as
a'icab'e to the eAistin& beneficiaries.
Special Energy 0eters
25. 1he Secia' +ner&y Meters sha'' be insta''ed by the 7entra' 1rans$ission ?ti'ity for
and at the cost of the direct custo$ers and by the concerned State 1rans$ission ?ti'ity for and
at the cost of the e$bedded custo$ers.
2". 1he Secia' +ner&y Meters insta''ed sha'' be caab'e of ti$e differentiated
$easure$ents :15 $inutes; of active ener&y and vo'ta&e differentiated $easure$ent of
reactive ener&y as secified by the 7entra' 1rans$ission ?ti'ity or the #e&iona' 0oad
2esatch 7entre.
2). 1he Secia' +ner&y Meters sha'' be a'ways $aintained in &ood condition.
2*. 1he Secia' +ner&y Meters for the direct custo$er sha'' be oen for insection by any
erson authorised by the 7entra' 1rans$ission ?ti'ity or the #e&iona' 0oad 2esatch 7entre.
Energy losses
2,. 1he trans$ission custo$ers sha'' bear avera&e ener&y 'osses in the trans$ission
syste$ as esti$ated by the #e&iona' 0oad 2esatch 7entre and the State 0oad 2esatch
7entre concerned. 1he ener&y 'osses in the trans$ission syste$ sha'' be co$ensated by
additiona' in>ection at the in>ection oint:s;. 1he infor$ation re&ardin& avera&e ener&y 'osses
for the revious 52 wee4s sha'' be osted on the website of the #e&iona' 0oad 2esatch
7entres and the State 0oad 2esatch 7entres.
Compliance o8 2rid Code
3.. 1he oen access custo$ers sha'' co$'y with the rovisions of the -rid 7ode in force
fro$ ti$e to ti$e.
Collection and Dis7/rsement o8 c5arges
31. :i; 1he trans$ission char&es in resect of the 'on&!ter$ custo$ers sha'' be ayab'e
direct'y to the resective trans$ission 'icensee.
:ii; 1he oeratin& char&e and the trans$ission char&es ayab'e by the short!ter$
custo$ers sha'' be co''ected and disbursed by the noda' #e&iona' 0oad
2esatch 7entre.
:iii; In case the trans$ission syste$ owned by the State 1rans$ission ?ti'ity is
interna'ised< the trans$ission char&es under #e&u'ation 1" of these re&u'ations
and the oeratin& char&e ayab'e under c'ause :i; of #e&u'ation 1) to be
co''ected by the noda' #e&iona' 0oad 2esatch 7entre< sha'' not inc'ude the
char&es for the trans$ission syste$ owned by the State 1rans$ission ?ti'ity
and oeratin& char&e ayab'e to the State 0oad 2esatch 7entre.
:iv; 1he co''ection and disburse$ent of the unschedu'ed inter!chan&e char&es and
the reactive ener&y char&es sha'' be &overned in accordance with the rocedure
and $ethodo'o&y secified by the 7o$$ission fro$ ti$e to ti$e.
In8ormation System
32. +ach #e&iona' 0oad 2esatch 7entre and State 0oad 2esatch 7entre sha'' ost
fo''owin& infor$ation on their websites in a searate web!a&e tit'ed P9en access
infor$ationQ C
:i; 8'oor rate in ruees er M3 er day for the short!ter$ custo$ers :S1Y#A1+;
for each ! :a; re&iona' syste$J :b; inter!re&iona' 'in4< and :c; syste$ of the
State 1rans$ission ?ti'ity or the State +'ectricity Board or any other
trans$ission 'icensee with detai'ed ca'cu'ations in suort of such rate in
resect of a'' the trans$ission 'icensees situate within the re&ion or the State
concernedJ
:ii; A status reort on the current short!ter$ custo$ers indicatin&C!
:a; Na$e of custo$erJ
:b; Period of the access &ranted :start date and end date;J
:c; Point:s; of in>ectionJ
:d; Point:s; of drawa'J
:e; 1rans$ission syste$s used :in ter$s of re&ion and ownershi;J
:f; #eserved trans$ission caacityJ and
:&; A'icab'e rate :#s er M3 er day;.
Note
1he status reort sha'' be udated uon every chan&e in status.
:iii; Month!wise and year!wise reort on ast short!ter$ custo$ers indicatin&C
:a; Na$e of the custo$erJ
:b; Period of the access &ranted :start date and end date;J
:c; Point:s; of in>ectionJ
:d; Point:s; of drawa'J
:e; 1rans$ission syste$s used :on the basis of re&ion and ownershi;J
:f; #eserved trans$ission caacityJ
:&; A'icab'e rate :#s er M3 er day;J and
:h; Actua' 'oad factor.
Note
A'' revious reorts sha'' a'so be avai'ab'e in the web!archives.
:iv; Infor$ation re&ardin& usa&e of the inter!re&iona' 'in4s and the interface
between the 7entra' 1rans$ission ?ti'ity and state syste$s :in case of the
#e&iona' 0oad 2esatch 7entre; and inter!state 'in4s :in case of State 0oad
2esatch 7entre; indicatin&C
:a; 1i$e of udatin&J
:b; Na$e of the 'in4J
:c; 1ota' trans$ission caacity of the 'in4J
:d; Schedu'ed caacity use :&ivin& custo$er!wise brea4!u;J and
:e; 7urrent caacity of the 'in4 in use.
Note
1his infor$ation shou'd be udated at 'east on hour'y basis< and where ever
feasib'e on 15 $inute basis.
:v; 1he infor$ation re&ardin& avera&e ener&y 'osses for the revious 52 wee4s.
33. 1he ub'ication of the web!based infor$ation syste$ sha'' co$$ence within 3. days
fro$ the date of co$$ence$ent of these re&u'ations in case of the #e&iona' 0oad 2esatch
7entres and within 1*. days fro$ the date of co$$ence$ent of these re&u'ations in case of
the State 0oad 2esatch 7entres. +ach trans$ission 'icensee sha'' $a4e avai'ab'e the above
infor$ation to the #e&iona' 0oad 2esatch 7entre or State 0oad 2esatch 7entre concerned.
34. A'' trans$ission 'icensees sha'' dec'are current 'on&!ter$ custo$ers usin& their
syste$ :inc'udin& se'f!use and use by unbund'ed a&encies which were revious'y inte&rated;
with detai's thereof either on their own websites or on the website of the #e&iona' 0oad
2esatch 7entre or the State 0oad 2esatch 7entre concerned< within 1*. days fro$ the date
of co$$ence$ent of these re&u'ations.
Note
1his 'ist sha'' be udated as and when chan&e in status ta4es 'ace.
+edressal 0ec5anism
35. A'' co$'aints re&ardin& unfair ractices< de'ays< discri$ination< 'ac4 of infor$ation<
su'y of wron& infor$ation or any other $atter re'ated to oen access in inter!state
trans$ission sha'' be directed to the Me$ber Secretary< #e&iona' +'ectricity Board or
#e&iona' Power 7o$$ittee< as the case $ay be< of the re&ion in which the authority a&ainst
who$ the co$'aint is $ade< is 'ocated. 1he Me$ber Secretary< #e&iona' +'ectricity Board
or the #e&iona' Power 7o$$ittee< as the case $ay be< sha'' investi&ate and endeavour to
reso've the &rievanceC
Provided that any $atter which the Me$ber Secretary< #e&iona' +'ectricity Board or
the #e&iona' Power 7o$$ittee< as the case $ay be< is unab'e to reso've< sha'' be reorted to
the 7o$$ission for a decision.
Coordination
3". 1he resonsibi'ities assi&ned to the #e&iona' 0oad 2esatch 7entres of for$u'ation of
rocedures< &uide'ines and a'ication for$s under these re&u'ations sha'' be coordinated by
the 7entra' 1rans$ission ?ti'ity.
A.I. SA7GAN
S+7#+1A#L
7+N1#A0 +0+71#I7I1L #+-?0A19#L 79MMISSI9N
New 2e'hi 6 11. ..3.
No. 0!)(25:5;(2..3!7+#7 21
st
8ebruary< 2..5
In eAercise of owers conferred under Section 1)* of the +'ectricity Act< 2..3 :3" of
2..3;< and a'' other owers enab'in& in this beha'f< and after revious ub'ication< the 7entra'
+'ectricity #e&u'atory 7o$$ission hereby $a4es the fo''owin& re&u'ations to a$end the
7entra' +'ectricity #e&u'atory 7o$$ission :9en Access in Inter!state 1rans$ission;
#e&u'ations< 2..4 :hereinafter referred to as Pthe rincia' re&u'ationsQ;< na$e'yC!
1. S5ort title and commencement6 :1; 1hese re&u'ations $ay be ca''ed the
7entra' +'ectricity #e&u'atory 7o$$ission :9en Access in Inter!state 1rans$ission; :8irst
A$end$ent; #e&u'ations< 2..5.
:2; 1hese re&u'ations sha'' co$e into effect on 1.4.2..5.
2. Amendment o8 +eg/lation ( o8 t5e principal reg/lations De8initions6
:i; Insertion o8 ne: Cla/se $ca*# After c'ause :c; of #e&u'ation 2 of the rincia'
re&u'ations< the fo''owin& sha'' be inserted< na$e'yC!
P:ca; P2ayQ $eans a day startin& at ..... hours and endin& at 24... hoursJQ
:ii; Insertion o8 ne: Cla/se $ga*# After c'ause :&; of #e&u'ation 2 of the
rincia' re&u'ations< the fo''owin& sha'' be inserted< na$e'yC!
P:&a; RMonthR $eans a ca'endar $onth as er the British ca'endarJQ
:iii; Insertion o8 ne: cla/se $9a* after c'ause :4; of #e&u'ation 2 of the rincia'
re&u'ations< the fo''owin& sha'' be inserted< na$e'y C!
:4a; Pwor4in& dayQ $eans a day on which ban4s are oen for businessJ
:iv; Amendment o8 cla/se $i*. 7'ause :i; of #e&u'ation 2 of the rincia' re&u'ations
sha'' be substituted as hereunder< na$e'yC!
R9en access custo$erR $eans a consu$er er$itted by the State
7o$$ission to receive su'y of e'ectricity fro$ a erson other than
distribution 'icensee of his area of su'y< or a &eneratin& co$any :inc'udin&
cative &eneratin& 'ant; or a 'icensee< who has avai'ed of or intends to avai'
of oen accessJQ
3. "mission o8 provisos to Cla/se $iii* o8 +eg/lation 4 o8 t5e principal reg/lations.
8irst and second rovisos to c'ause :iii; of #e&u'ation 4 of the rincia' re&u'ations sha'' be
o$itted.
4. Amendment o8 +eg/lation ' o8 t5e principal reg/lations. #e&u'ation " of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
L Criteria 8or Allotment and +eservation o8 Transmission Capacity
". :i; A''ot$ent riority of a 'on&!ter$ custo$er sha'' be hi&her than
reservation riority of a short!ter$ custo$er.
:ii; 3ithin a cate&ory :'on&!ter$ or short!ter$;< there sha'' be no
discri$ination between oen access custo$ers and se'f!use by an
inte&rated uti'ity 'i4e the State +'ectricity Board.
:iii; In case of inter!re&iona' transactions< reservation of trans$ission
caacity to the short!ter$ custo$er $ay be reduced or cance''ed by the
#e&iona' 0oad 2esatch 7entre< if the 7entra' -overn$ent a''ocates
ower fro$ the 7entra' -eneratin& Station or Stations in a re&ion to a
erson in another re&ion and such a''ocation< in the oinion of the
#e&iona' 0oad 2esatch 7entre< cannot otherwise be i$'e$ented due
to con&estion in the inter!re&iona' 'in4. If the #e&iona' 0oad 2esatch
7entre decides to reduce or cance' trans$ission caacity reserved for a
short!ter$ custo$er under this c'ause< it sha''< as soon as ossib'e<
inti$ate the short!ter$ custo$er concerned of its decision to reduce or
cance' trans$ission caacity.
:iv; 1he a'ications for &rant of short!ter$ access sha'' be rocessed on'y
if such short!ter$ access is co$$encin& in the first $onth to the
fourth $onth and is not endin& beyond the fourth $onth< ta4in& the
$onth in which a'ication is $ade as the first $onth.
:v; 1he a'ications for &rant of short!ter$ access received in a $onth for
oen access co$$encin& in the $onth in which the a'ication is
$ade or received after the nineteenth day of a $onth for oen access
co$$encin& and ter$inatin& in the fo''owin& $onth sha'' be treated on
first!co$e!first!served basis< and short!ter$ access sha'' be &ranted
sub>ect to avai'abi'ity of the trans$ission caacity.
:vi; A'' a'ications for short!ter$ access< other than the a'ications for
short!ter$ access to be rocessed on first!co$e!first!served basis in
accordance with c'ause :v; above< received u to the nineteenth day of
a $onth sha'' be considered to&ether on the twentieth day of that $onth
for advance reservation and sha'' be rocessed in the $anner &iven
hereunder< na$e'yC!
:a; 1he a'ications sha'' be ana'ysed to chec4 for con&estion on any
of the trans$ission corridors to be used for short!ter$ access.
:b; In case the noda' #e&iona' 0oad 2esatch 7entre does not
anticiate con&estion on any of the trans$ission corridors
invo'ved< the a'icants sha'' be &ranted short!ter$ access for the
=uantu$ and duration sou&ht< 'atest by the twenty!fifth day of
the $onth.
:c; If in the oinion of the noda' #e&iona' 0oad 2esatch 7entre<
&rant of short!ter$ access to a'' the a'icants is 'i4e'y to 'ead to
con&estion in one or $ore of the trans$ission corridors to be used
for short!ter$ access for any duration< it sha'' infor$ the
a'icants of its oinion accordin&'y and the reasons therefor on
or before the twenty!third day of the $onth.
:d; 9n receit of inti$ation in accordance with sub!c'ause :c; above<
an a'icant $ay reduce its re=uire$ent of trans$ission caacity
durin& the eriod of con&estion or ot for access on'y for the
duration when no con&estion is anticiated and in such a
situation< he sha'' infor$ the noda' #e&iona' 0oad 2esatch
7entre accordin&'y by the twenty!fifth day of the $onth.
:e; If the noda' #e&iona' 0oad 2esatch 7entre sti'' anticiates
con&estion in one or $ore of the trans$ission corridors to be
used for short!ter$ access< it sha'' invite e'ectronic!bids for
reservation of trans$ission caacity of the con&ested
trans$ission corridor in accordance with #e&u'ation 14 of these
re&u'ations on the twenty!siAth day of the $onth. Non!
articiation of an a'icant in the biddin& rocess sha'' be
construed that he is no 'on&er interested in oen access and his
a'ication sha'' not be rocessed.
:vii; In the event of a reserved trans$ission corridor subse=uent'y
beco$in& fu''y or art'y vacant for certain duration in a $onth<
the #e&iona' 0oad 2esatch 7entre sha'' dis'ay this
infor$ation in ub'ic do$ain on its website.
:viii; +Acet as rovided in c'ause :iii;< once oen access has
been &ranted< the 'on&!ter$ custo$er or the short!ter$ custo$er
sha'' not be re'aced by any other erson on account of a
subse=uent re=uest received fro$ such other erson.
:iA; 1he #e&iona' 0oad 2esatch 7entres sha'' 'ay down a detai'ed
rocedure for reservation of trans$ission caacity to the short!
ter$ custo$ers after obtainin& rior arova' of the
7o$$ission< which sha'' inc'ude the detai'ed rocedure for
invitin& bids< advance reservation< reservation on first!co$e!
first!served basis< usa&e of a'ternate route throu&h other re&ions
if direct inter!re&iona' 'in4s between two re&ions are con&ested
or constrained and any other residua' $atter. Any further
revision of the rocedure sha'' be carried out on'y after
obtainin& rior arova' of the 7o$$issionQ
5. Amendment o8 +eg/lation E. #e&u'ation ) of the rincia' re&u'ations sha'' be
substituted as hereunder< na$e'yC!
PDeclaration o8 !ong3term "pen Access
). +very trans$ission 'icensee sha'' dec'are the eAistin& 'on&!ter$ custo$ers
usin& its trans$ission syste$ :inc'udin& se'f!use and use by unbund'ed a&encies which
were revious'y inte&rated; either on its website or on the website of the #e&iona' 0oad
2esatch 7entre or the State 0oad 2esatch 7entre concerned 'atest by the thirtieth day
of Fune 2..5.Q
". Amendment o8 +eg/lation %) o8 t5e principal reg/lations.
:vi; 7'ause :ii; of #e&u'ation 13 of the rincia' re&u'ations sha'' be substituted as
hereunder< na$e'yC!
R:ii; 1he a'ication sha'' contain the detai's< such as caacity needed< oint
or oints of in>ection< oint or oints of drawa'< duration for avai'in& of oen
access< ea4 'oad< avera&e 'oad and such other additiona' infor$ation that $ay
be 'aid down by the #e&iona' 0oad 2esatch 7entreJR
:ii; 7'ause :iii; of #e&u'ation 13 of the rincia' re&u'ations sha'' be substituted as
hereunder< na$e'yC
P:iii; 1he a'ication sha'' be acco$anied by a non!refundab'e a'ication
fee of #uees five thousand on'yJ
Provided that in case of a'ication for access on the date of the
a'ication or on the fo''owin& day< the a'ication fee $ay be deosited
within neAt three wor4in& days of $a4in& of a'icationQ.
). Insertion o8 ne: +eg/lation %) A. After #e&u'ation 13 of the rincia' re&u'ations<
the fo''owin& re&u'ation sha'' be inserted< na$e'yC!
Lidding Process 8or S5ort3term Access
13A. :i; 1he f'oor rice for biddin& sha'' be the S1Y#A1+ deter$ined in
accordance with #e&u'ation 1" of these re&u'ations.
:ii; 1he bidders sha'' =uote rice in ter$s of the f'oor rice.
:iii; No bidder sha'' be a''owed to =uote rice which is $ore than five ti$es
the f'oor rice in case of intra!re&iona' trans$ission syste$ and $ore
than a two and a ha'f ti$es the f'oor rice in case of inter!re&iona'
trans$ission syste$.
:iv; #eservation of trans$ission caacity sha'' be $ade in decreasin& order
of the rice =uoted.
:v; In case of e=ua' rice =uoted by two or $ore bidders< the reservation of
trans$ission caacity sha'' be $ade pro rata to the trans$ission
caacity sou&ht to be reserved.
:vi; 1he short!ter$ custo$er &ettin& reservation for caacity 'ess than the
caacity sou&ht by hi$ sha'' ay the char&es =uoted by hi$ and the
short!ter$ custo$ers &ettin& trans$ission caacity reservation e=ua' to
the caacity sou&ht to be reserved< sha'' ay the char&es =uoted by the
'ast custo$er &ettin& reservation of trans$ission caacity.Q
*. Amendment o8 +eg/lation %4 o8 t5e principal reg/lations. #e&u'ation 14 of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
LNon3/tilisation o8 reserved transmission capacity 7y S5ort3term C/stomer6
14. :i; In case a short!ter$ custo$er is unab'e to uti'ise< fu'' or substantia' art
of the reserved trans$ission caacity< he sha'' infor$ the noda' #e&iona' 0oad
2esatch 7entre a'on& with reasons for his inabi'ity to uti'ise the reserved
trans$ission caacity and $ay surrender the reserved trans$ission caacity.
:ii; Notwithstandin& any thin& contained in these re&u'ations< the #e&iona'
0oad 2esatch 7entre $ay on its own reduce or cance' the reserved
trans$ission caacity of a short!ter$ custo$er when such a short!ter$
custo$er fre=uent'y underuti'ises the reserved trans$ission caacityC
Provided that the reserved trans$ission caacity sha'' not be
reduced or cance''ed under this c'ause without a rior notice to the
short!ter$ custo$er whose reserved trans$ission caacity is sou&ht to
be reduced or cance''ed.
:iii; 1he short!ter$ custo$er< who has surrendered the reserved
trans$ission caacity under c'ause :i; or whose reserved trans$ission
caacity has been reduced or cance''ed under c'ause :ii;< sha'' bear the
trans$ission char&es and the oeratin& char&e based on the ori&ina'
reserved trans$ission caacity for seven days or the eriod of
reservation surrendered or reduced or cance''ed< as the case $ay be<
whichever eriod is shorter.
Note
8or the urose of this c'ause< the eAression Poeratin& char&eQ sha''
have the sa$e $eanin& as assi&ned to it under #e&u'ation 1).
:iv; 1he trans$ission caacity beco$in& avai'ab'e as a resu't of surrender
by the short!ter$ custo$er under c'ause :i; or as a resu't of reduction
or cance''ation of the reserved trans$ission caacity by the #e&iona'
0oad 2esatch 7entre under c'ause :ii;< $ay be reserved for any other
short!ter$ custo$er in accordance with these re&u'ations.Q
,. Amendment o8 +eg/lation %B o8 t5e principal reg/lations. #e&u'ation 15 of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
Treatment o8 E>isting Transactions#
15. Any erson &ranted oen access before co$$ence$ent of the 7entra'
+'ectricity #e&u'atory 7o$$ission :9en Access in Inter!state 1rans$ission;
#e&u'ations< :8irst A$end$ent; #e&u'ations< 2..5 sha'' not be disturbed ti'' eAiry of
the eriod for which oen access has been &ranted.R
1.. Amendment o8 +eg/lation %' o8 t5e principal reg/lations. #e&u'ation 1" of the
rincia' re&u'ations sha'' be substituted as under< na$e'yC!
PTransmission C5arges
1". 1he trans$ission char&es for use of the trans$ission syste$ of the trans$ission
'icensee for inter!state trans$ission sha'' be re&u'ated as under< na$e'yC!
:viii; 1he annua' trans$ission char&es ayab'e by a 'on&!ter$ custo$er for use of
the trans$ission syste$ sha'' be deter$ined in accordance with the ter$s and
conditions of tariff notified by the Aroriate 7o$$ission fro$ ti$e to ti$e
and after deductin& the ad>ustab'e revenue received fro$ the short!ter$
custo$ers< these char&es sha'' be shared by the 'on&!ter$ custo$ers.
:ii; 1he trans$ission char&es ayab'e by a short!ter$ custo$er sha'' be ca'cu'ated
in accordance with the fo''owin& $ethodo'o&y< na$e'yC!
$a* Intra3regional system
S1Y#A1+ X ..25 A T1S7( AvY7APU( 3"5
$7* Inter3regional system
S1Y#A1+ X ..5. T 1S7( 7I#U(3"5
3hereC
S1Y#A1+ is the rate for short!ter$ custo$er in #s er M3 er day.
Note
S1Y#A1+ sha'' be ca'cu'ated and a'ied for each re&iona' trans$ission
syste$< inter!re&iona' trans$ission 'in4< and trans$ission syste$ of the State
1rans$ission ?ti'ity or any other trans$ission 'icensee for$in& art of the
inter!state trans$ission syste$.
R1S7R $eans the annua' trans$ission char&es or annua' revenue re=uire$ent
on account of the trans$ission syste$ for the revious financia' year as
deter$ined by the Aroriate 7o$$ission.
RAvY7APR $eans the avera&e caacity in M3 served by the intra!re&iona'
trans$ission syste$ of the trans$ission 'icensee in the revious financia' year
and sha'' be the su$ of the &eneratin& caacities connected to the trans$ission
syste$ and contracted caacities of other 'on&!ter$ transactions hand'ed by
the syste$ of the trans$ission 'icensee.
P7I#Q $eans the trans$ission caacity of the inter!re&iona' syste$
:iii; 1he trans$ission char&es ayab'e by a short!ter$ custo$er in case of
uncon&ested trans$ission corridor sha'' be 'evied as under< na$e'y C!
:a; ? to " hours in a day in one b'oc4 C 1(4
th
of S1Y#A1+
:b; More than " hours and u to 12 hours in a day in one b'oc4 C 1(2 of
S1Y#A1+
:c; More than 12 hours and uto 24 hours in a day in one b'oc4 C e=ua' to S1 Y
#A1+
:iv; Non!deter$ination of annua' trans$ission char&es for the trans$ission syste$
sha'' not be a &round for de'ay in rovidin& short!ter$ access and where
annua' trans$ission char&es for any trans$ission 'icensee are not deter$ined
under the Act< S1 Y #A1+ a'icab'e for the syste$ owned by the 7entra'
1rans$ission ?ti'ity of the re&ion in which the syste$ of trans$ission 'icensee
is situate< sha'' be a'ied for deter$ination of the char&es for the short!ter$
custo$er.
:v; +very trans$ission 'icensee sha'' dec'are S1 Y #A1+< ca'cu'ated in accordance
with c'ause :ii; above< which sha'' re$ain fiAed for a eriod of one year.
:vi; If the trans$ission syste$ be'on&s to the 7entra' 1rans$ission ?ti'ity or State
1rans$ission ?ti'ity< 25B of the char&es co''ected fro$ the short!ter$
custo$er for use of its intra!re&iona' trans$ission syste$ and 12.5B of the
char&es co''ected fro$ the short!ter$ custo$ers for use of its inter!re&iona'
syste$ sha'' be retained by the 7entra' 1rans$ission ?ti'ity or State
1rans$ission ?ti'ity and the re$ainin& art of these char&es sha'' be ad>usted
towards reduction in the trans$ission char&es ayab'e by the 'on&!ter$
custo$ers.
:vii; 9en access char&es secified in this re&u'ation sha'' not be a'icab'e for the
inter!state trans$ission syste$ in North!+astern #e&ion. 1he char&es for use
of the inter!state trans$ission in this re&ion sha'' be re&u'ated under the
searate orders of the 7o$$ission issued fro$ ti$e to ti$e.Q
11 Amendment o8 +eg/lation %E o8 t5e principal reg/lations. #e&u'ation 1) of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
L9eratin& 7har&e
%E# $i* A composite operating c5arge K +s#);&&&J3 per day or part o8 t5e day
and K +s %;&&&J3 per day or part o8 t5e day s5all 7e paya7le 7y a s5ort3
term c/stomer 8or eac5 transaction to t5e eac5 o8 t5e +egional !oad
Despatc5 Centre involved and State !oad Despatc5 Centre respectively#
Note 1
T5e operating c5arge incl/des 8ee 8or sc5ed/ling and system
operation; 8ee 8or a88ecting revisions in sc5ed/le on 7ona8ide gro/nds and
collection and dis7/rsement c5arges#
Note 2
T5e operating c5arge collected 7y t5e +egional !oad Despatc5
Centre in accordance :it5 Cla/se $i* s5all 7e in addition to t5e 8ees and
c5arges speci8ied 7y t5e Commission /nder s/73section $4* o8 Section (C o8
t5e Act#
+A'anation
"perating c5arge s5all 7e paya7le 7y a generating company :5en
it is granted s5ort3term access /nder t5ese reg/lations#M
12. Amendment o8 +eg/lation %A o8 t5e principal reg/lations. #e&u'ation 1, of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
1,. P1he ay$ent and receit of the reactive ener&y char&es by the direct
custo$ers on account of oen access sha'' be ca'cu'ated in accordance with the
sche$e a'icab'e to transactions invo'vin& inter!state trans$ission aroved by the
7o$$ission fro$ ti$e to ti$e.R
13. Amendment o8 +eg/lation (( o8 t5e principal reg/lations. #e&u'ation 22 of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
LTime Sc5ed/le 8or Processing Application
22 :i; In addition to the ti$e schedu'e rescribed under re&u'ation " for
rocessin& of a'ications for advance reservation< as far as racticab'e< the
fo''owin& ti$e schedu'e sha'' be adhered to by the resective noda' a&ency for
rocessin& of the a'ication for &rant of access< na$e'yC!
S#No# Type o8 serviceJactivity 0a>im/m Processing
time
%# S5ort3term Service :for the eriod to be treated on first!
co$e!first!served basis;
? to one wee4 2 days
More than a wee4 3 days
(# !ong3term Service
Inti$ation re&ardin& feasibi'ity of access without syste$
stren&thenin&
3. days
Inti$ation of resu'ts of studies for syste$ stren&thenin&
with cost esti$ates and co$'etion schedu'e
,. days
$i>* Day a5ead transaction6
:a; 1he advance ay$ent of trans$ission char&es< oeratin& char&e and a'ication
fee sha'' not be insisted uon. 1hese ay$ents can be $ade within 3 wor4in&
days of $a4in& of a'ication.
:b; A co$osite re=uest for oen access and schedu'in& sha'' be sent to the noda'
#e&iona' 0oad 2esatch 7entre throu&h the State 0oad 2esatch 7entre
concerned 'atest by 3... PM. 1he noda' #e&iona' 0oad 2esatch 7entre sha''
ta4e stes to incororate the re=uest for oen access in the schedu'es to be issued
by the #e&iona' 0oad 2esatch 7entres concerned< if the re=uest can be
acco$$odated without causin& con&estion.
:c; A co$osite re=uest for oen access and schedu'in& to uti'ise sur'uses 4nown
after issuance of the first desatch schedu'e by #e&iona' 0oad 2esatch 7entres at
5... PM< $ust be sub$itted to the noda' #e&iona' 0oad 2esatch 7entre 'atest by
1.... PM or referab'y ear'ier. 1he noda' #e&iona' 0oad 2esatch 7entre sha''
endeavour to incororate the sa$e in the revised desatch schedu'e to be issued by
the #e&iona' 0oad 2esatch 7entres concerned< if the re=uest can be
acco$$odated without causin& con&estion.
:iii; Same Day transactions
:a; 1he advance ay$ent of trans$ission char&es< oeratin& char&e and
a'ication fee sha'' not be insisted uon. 1hese ay$ents can be $ade
within 3 wor4in& days of $a4in& of a'ication.
:b; In the event of e$er&ency< the beneficiaries(buyin& uti'ity $ay 'ocate a
source of ower to $eet short!ter$ e$er&ency re=uire$ent on the
sa$e day and forward re=uest for oen access to the noda' #e&iona'
0oad 2esatch 7entre throu&h the concerned State 0oad 2esatch
7entre. 1he #e&iona' 0oad 2esatch 7entres sha'' endeavour to
acco$$odate such e$er&ency re=uests as soon as and to the eAtent
ractica''y feasib'e.
14. Insertion o8 ne: +eg/lation ()A. After #e&u'ation 23 of the rincia' re&u'ations<
the fo''owin& re&u'ation sha'' be inserted< na$e'yC!
PTransmission C5arges 8or s5ort3term c/stomers in case o8 c/rtailment
23A. In case of curtai'$ent of $ore than 5.B of the reserved trans$ission caacity
by the #e&iona' 0oad 2esatch 7entre on any articu'ar day on account of
trans$ission constraints< the trans$ission char&es for that day sha'' be ayab'e by the
short!ter$ custo$ers on pro rata basis in accordance with the trans$ission caacity
actua''y rovided.Q
15. Amendment o8 +eg/lation (4 o8 t5e principal reg/lations. #e&u'ation 24 of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
PCommercial Conditions
24. :i; Short!ter$ custo$ers
:a; 1he trans$ission char&es and oeratin& char&e sha'' be aid to
the noda' #e&iona' 0oad 2esatch 7entre on $onth'y basis.
:b; Advance ay$ent for one $onth or eriod of access<
whichever eriod is shorter< sha'' be $ade within three wor4in&
days of &rant of access.
:c; Subse=uent ay$ents sha'' be $ade at 'east one day before
be&innin& of neAt $onth.
:d; Pay$ent sha'' be $ade either throu&h che=ue(de$and draft
ayab'e at the 'ocation of the noda' #e&iona' 0oad 2esatch
7entre or throu&h e'ectronic transfer.
:e; If duration of access &ranted eAceeds one $onth< the short! ter$
custo$er sha'' rovide an irrevocab'e bac4 u 'etter of credit
within seven days of co$$ence$ent of oen access.
:f; In case of non!receit of ay$ent within the eriod secified in
c'ause :b; or :c; above< the noda' #e&iona' 0oad 2esatch
7entre sha''< in its discretion< have the ri&ht to invo4e the 'etter
of credit or cance' the reserved trans$ission caacity.
:ii; 0on&!ter$ custo$ers
1he co$$ercia' conditions for the 'on&!ter$ custo$er sha'' be sa$e as
a'icab'e to the eAistin& beneficiaries.Q
1". Amendment o8 +eg/lation (B o8 t5e principal reg/lations# . #e&u'ation 25 of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
PSpecial Energy 0eters
25. 1he Secia' +ner&y Meters sha'' be insta''ed by the 7entra' 1rans$ission ?ti'ity
for and at the cost of the direct custo$ers and by the concerned State 1rans$ission
?ti'ity for and at the cost of the e$bedded custo$ers.Q
1). Amendment o8 +eg/lation )% o8 t5e principal reg/lations. #e&u'ation 31 of the
rincia' re&u'ations sha'' be substituted as hereunder< na$e'yC!
LCollection and Dis7/rsement o8 C5arges
31. :i; 1he trans$ission char&es in resect of the 'on&!ter$ custo$ers sha'' be
ayab'e direct'y to the resective trans$ission 'icensee.
:iii; 1he oeratin& char&e and the trans$ission char&es ayab'e by the short!ter$
custo$ers sha'' be co''ected and disbursed by the noda' #e&iona' 0oad
2esatch 7entre.
:iv; In case the trans$ission syste$ owned by the State 1rans$ission ?ti'ity is
interna'ised< the trans$ission char&es under #e&u'ation 1" of these re&u'ations
and the oeratin& char&e ayab'e under c'ause :i; of #e&u'ation 1) to be
co''ected by the noda' #e&iona' 0oad 2esatch 7entre< sha'' not inc'ude the
char&es for the trans$ission syste$ owned by the State 1rans$ission ?ti'ity
and oeratin& char&e ayab'e to the State 0oad 2esatch 7entre.
:v; 1he co''ection and disburse$ent of the unschedu'ed inter!chan&e char&es and
the reactive ener&y char&es sha'' be &overned in accordance with the rocedure
and $ethodo'o&y secified by the 7o$$ission fro$ ti$e to ti$e.Q
$A#F# SACDAN*
SEC+ETA+1
Note
1he rincia' re&u'ations were ub'ished in Part III< Section 4 of the -aEette of India
:+Atraordinary; dated ".2.2..4.
1he conso'idated re&u'ations< after incororatin& the a$end$ents to the rincia'
re&u'ations are anneAed.
Electricity Trading !icense J CE+C $)&#&%#(&&4*
CENT+A! E!ECT+ICIT1 +E2,!AT"+1 C"00ISSI"N
New 2e'hi
N"TIFICATI"N
No.0!)(25:";(2..4 2ated the 3.
th
Fanuary<2..4
In eAercise of owers conferred under Section 1)* of the +'ectricity Act< 2..3 and of
a'' other owers enab'in& in this beha'f< and after revious ub'ication< the 7entra' +'ectricity
#e&u'atory 7o$$ission hereby $a4es the fo''owin& re&u'ations< na$e'yC !
CDAPTE+3 I6 P+E!I0INA+1
%# S5ort Title and Commencement
1 :a; 1hese re&u'ations sha'' be ca''ed the 7entra' +'ectricity #e&u'atory
7o$$ission :Procedure< 1er$s % 7onditions for &rant of 1radin& 0icence and other
re'ated $atters; #e&u'ations< 2..4.
2 :b; 1hese re&u'ations sha'' co$e into force fro$ the date of their ub'ication in the
9fficia' -aEette.
(# De8initions and Interpretation
:1; In these re&u'ations un'ess the conteAt or sub>ect!$atter otherwise re=uires<!
1 :a; PActQ $eans the +'ectricity Act< 2..3< :3" of 2..3;J
2 :b; PA'icantQ $eans a erson who has $ade an a'ication to the 7o$$ission for
&rant of 'icence for inter!state tradin&C
Provided that such erson is a resident of India< or a artnershi fir$ re&istered under
the Indian Partnershi Act< 1,32 :, of 1,32;< or a co$any incororated under the 7o$anies
Act< 1,5" :1 of 1,5"; or an association or body of individua's whether incororated or not or
an artificia' >uridica' erson sub>ect to Indian 'aws.
1 :c; PA&ree$entQ $eans the a&ree$ent entered into between the e'ectricity trader and the
se''er of e'ectricity on the one hand and the e'ectricity trader and the buyer of e'ectricity
on the otherJ
2 :d; P7o$$issionQ $eans the 7entra' +'ectricity #e&u'atory 7o$$ission referred to in
Section )" of the ActJ
3 :e; P7onduct of Business #e&u'ationsQ $eans the 7entra' +'ectricity #e&u'atory
7o$$ission :7onduct of Business; #e&u'ations< 1,,,< as a$ended fro$ ti$e to ti$e and
inc'udes any statutory re!enact$ent thereofJ
4 :f; P -rid 7odeR $eans the -rid 7ode secified by the 7o$$ission under c'ause :h; of
sub!section :1; of Section ), of the Act and inc'udes the Indian +'ectricity -rid 7ode
a'icab'e on the date of co$$ence$ent of these re&u'ationsJ
5 :&; RInter!state tradin&R $eans transfer of e'ectricity fro$ the territory of one State to the
territory of another State by an e'ectricity traderJ
" :h; P0icenceQ $eans a 'icence &ranted under Section 14 of the Act to underta4e inter!state
tradin& in e'ectricity as an e'ectricity traderJ
) :i; P0icenseeQ $eans a erson who has been &ranted a 'icence under Section 14 of the Act
to underta4e inter!state tradin& in e'ectricity as an e'ectricity traderJ
* :>; R9ther BusinessR $eans any business of the 'icensee other than the 'icensed business of
inter!state tradin&J
, :4; RLearR $eans a eriod of twe've $onths fro$ 1
st
Ari' of a ca'ender year to 31
st
March of the fo''owin& ca'ender yearJ
1 :2; Save as aforesaid and un'ess reu&nant to the conteAt or the sub>ect!$atter
otherwise re=uires< words and eAressions used in these re&u'ations and not
defined< but defined in the Act< and the -rid 7ode sha'' have the $eanin&s
assi&ned to the$ resective'y in the Act or the -rid 7ode.
2 :3; 1he rovisions of the -enera' 7'auses Act< 1*,) :1. of 1*,); as a$ended fro$
ti$e to ti$e sha'' a'y for the interretation of these re&u'ations as they a'y for
the interretation of an Act of Par'ia$ent.
3 :4; 1hese re&u'ations sha'' be a'icab'e to tradin& carried out bi'atera''y between
the &eneratin& co$any< inc'udin& cative &eneratin& 'ant< distribution 'icensee
and the e'ectricity trader on the one hand and the e'ectricity trader and the
distribution 'icensee on the otherC
Provided that the scoe and a'icabi'ity of these re&u'ations $ay be reviewed
fro$ ti$e to ti$e to 4ee ace with the deve'o$ents of for$u'ation of re&u'ations
for oen access in distribution by the State +'ectricity #e&u'atory 7o$$issions or
introduction of ower eAchan&e $ar4et by the 7o$$ission.
CDAPTE+3II 6 P+"CED,+E F"+ 2+ANT "F !ICENCE F"+ INTE+3STATE
T+ADIN2
1 A'' roceedin&s under these re&u'ations sha'' be &overned by the 7onduct of Business
#e&u'ations.
2 :1; 1he a'ication for &rant of 'icence for inter!state tradin& sha'' be $ade to the
7o$$ission in the $anner secified under these re&u'ations< in 8or$!I aended to
these re&u'ations and sha'' be acco$anied by such fee as $ay be rescribed by the
7entra' -overn$entC
Provided that ti'' such ti$e the fee is rescribed by the 7entra' -overn$ent< the
a'ication for &rant of 'icence for inter!state tradin& sha'' be acco$anied by a fee of
#s.1... 'a4h :#uees one 'a4h on'y; ayab'e throu&h Ban4 2raft(Pay 9rder drawn in
favour of Assistant Secretary< 7entra' +'ectricity #e&u'atory 7o$$ission< New 2e'hi<
and the fee so aid sha'' be sub>ect to ad>ust$ent as and when the fee is rescribed by
the 7entra' -overn$ent.
1 :2; 1he a'ication for &rant of 'icence for inter!state tradin&< a'on& with anneAures and
enc'osures sha'' a'so be sub$itted to the 7o$$ission on co$act disc :72;.
2 :3; 1he a'icant sha'' ost co$'ete a'ication a'on& with anneAures and enc'osures on
his own website or any other authorised website< so as to faci'itate access to the
a'ication by any erson throu&h Internet.
3 :4; 1he a'icant sha'' within ) days after $a4in& such a'ication< ub'ish a notice of his
a'ication< in at 'east two nationa' +n&'ish dai'y newsaers< inc'udin& one econo$ic
newsaer and two 'oca' newsaers fa''in& within the area or areas of tradin&< one of
which sha'' be in vernacu'ar< with the fo''owin& articu'ars< na$e'yC!
4 :a; Na$e of the a'icant in bo'd at the to c'ear'y brin&in& out whether the a'icant is
an individua'< a artnershi fir$ re&istered under the Indian Partnershi Act 1,32 :, of
1,32;< a rivate 'i$ited co$any or a ub'ic 'i$ited co$any< incororated under the
7o$anies Act< 1,5"< :1 of 1,5"; &ivin& fu'' articu'ars of its office address and a'so the
re&istered office address in case of a 7o$any incororated under the 7o$anies Act<
1,5"J
5 :b; A state$ent that the a'icant has $ade an a'ication for &rant of 'icence in inter!
state tradin& under sub!section :1; of Section 15 of the Act< to the 7entra' +'ectricity
#e&u'atory 7o$$issionJ
" :c; Share ho'din& attern< financia' and technica' stren&th and $ana&e$ent rofi'e of the
a'icantJ
) :d; /o'u$e of ower intended to be traded durin& the first year after &rant of 'icence and
the future 'ans for tradin& durin& the neAt 5 yearsJ
* :e; 2etai's of ast eAerience of the a'icant or the ersons on its $ana&e$ent in sa$e
or si$i'ar activityJ
, :f; -eo&rahica' areas within which the a'icant wi'' underta4e tradin& in e'ectricity as
stated in the a'ication $ade to the 7o$$issionJ
1. :&; A state$ent to the effect that the a'ication and other docu$ents fi'ed before the
7o$$ission fro$ ti$e to ti$e< are avai'ab'e for insection with the a'icant< by any
ersonJ
11 :h; Na$e and address and other re'evant detai's of the erson under the contro' of the
a'icant with who$ the a'ication and other docu$ents can be insected by any ersonJ
12 :i; A state$ent to the effect that co$'ete a'ication is avai'ab'e on the website of the
a'icant or any other authorised website a'on&with the detai's of the website where the
a'ication is $ade avai'ab'eJ
13 :>; A state$ent that ob>ections< if any< be fi'ed before the Secretary< 7entra' +'ectricity
#e&u'atory 7o$$ission< )
th
8'oor< 7ore!3< Scoe 7o$'eA< 0odhi #oad< New 2e'hi ! 11.
..3 or at the address where office of the 7o$$ission is situate< with a coy of the
ob>ections to the a'icant< within 3. days of ub'ication of the noticeJ
14 :5; 1he a'icant sha'' within ) days fro$ the date of ub'ication of the notice as
aforesaid sub$it to the 7o$$ission on affidavit the detai's of the notice ub'ished and
sha'' a'so fi'e re'evant coies of the newsaers in which the notice is ub'ished.
15 :"; 1he a'icant $ay fi'e his co$$ents on the ob>ections or su&&estions received in
resonse to the notice within 45 days of its ub'ication in the newsaers.
1" :); 1he 7o$$ission $ay consider the a'ication for &rant of 'icence for inter!state
tradin& throu&h a hearin& or without any hearin&< as considered aroriateC
Provided that the 7o$$ission $ay issue a 'icence for inter!state tradin& on
bein& satisfied that the a'icant =ua'ifies for issue of such 'icence under the
rovisions of the Act and the #u'es and the #e&u'ationsC
Provided further that before &rantin& the 'icence< the 7o$$ission sha'' ub'ish
a notice of its roosa' to &rant the 'icence in two dai'y newsaers< as the
7o$$ission $ay consider necessary< statin& the na$e and address of the erson to
who$ it rooses to issue the 'icence< with such other detai's as the 7o$$ission
considers aroriate.
:*; As far as racticab'e the 'icence sha'' be &ranted in accordance with for$at
rescribed in 8or$ 2 aended to these re&u'ations.
CDAPTE+ III +EG,I+E0ENTS "F EIN2 AN E!ECT+ICIT1 T+ADE+
B# Tec5nical +e@/irements
1 :1; 1he a'icant sha'' have at 'east one fu''!ti$e rofessiona' havin&< eAerience in
each of the fo''owin& disci'ines< na$e'yC
2 :i; Power Syste$ 9erations and co$$ercia' asects of ower transfer< and
3 :ii; 8inance< co$$erce and accounts .
2 :2; 1he technica' re=uire$ent of staff sha'' be co$'ied with before underta4in&
tradin& activities< notwithstandin& the fact that the 7o$$ission has &ranted the 'icence for
inter!state tradin&.
3 :3; 1he a'icant sha'' furnish to the 7o$$ission the detai's of the rofessiona' and
the suortin& staff en&a&ed by hi$ on fu''!ti$e basis before underta4in& inter!state tradin&.
'# Capital ade@/acy +e@/irement and Credit:ort5iness6 7onsiderin& the vo'u$e of inter!
state tradin& roosed to be underta4en< the net worth of the e'ectricity trader at the ti$e of
a'ication sha'' not be 'ess than the a$ounts secified hereunderC
S'.
No.
7ate&ory of the
1radin& 0icence
/o'u$e of +'ectricity roosed to
be traded :in Ii'o ! 3att Gours;
Net worth
:#s. in crore;
1 A ?to 1.. $i''ion 1.5.
2 B 1.. to 2.. $i''ion 3..
3 7 2.. to 5.. $i''ion ).5
4 2 5.. to ).. $i''ion 1...
5 + ).. to 1... $i''ion 15...
" 8 Above 1... $i''ion 2....
CDAPTE+ 3 I. 6 TE+0S AND C"NDITI"NS "F TDE !ICENCE
E# "7ligations o8 t5e !icensee
1he 'icensee sha'' be sub>ect to the fo''owin& ob'i&ationsJ na$e'yC!
:a; 1he 'icensee sha'' co$'y with the re=uire$ents of 'aws in force and< in articu'ar< the
Act< the #u'es and the #e&u'ations< -rid 7ode< orders and directions issued by the
7o$$ission and the State +'ectricity #e&u'atory 7o$$ission :s; fro$ ti$e to ti$eJ
:b; 1he 'icensee sha'' increase his net worth if the vo'u$e of trade $oves fro$ a 'ower
cate&ory to a hi&her cate&ory and the chan&e of cate&ory sha'' be decided based on the
vo'u$e of e'ectricity traded as on 31
st
March of each year< and of which the 'icensee sha''
4ee the 7o$$ission infor$ed of his $ovin& fro$ one cate&ory to the other and subse=uent
chan&es in the net worthJ
:c; 1he 'icensee sha'' be sub>ect to the tradin& $ar&ins for the inter!state tradin& as fiAed by
the 7o$$ission< fro$ ti$e to ti$eJ
:d; 1he 'icensee sha'' be &overned by the technica' re=uire$ents< caita' ade=uacy
re=uire$ents and creditworthiness secified by the 7o$$ission in these re&u'ations< for
bein& an e'ectricity trader and sha'' u&rade these technica' and caita' ade=uacy
re=uire$ents< inc'udin& staff< when the vo'u$e of tradin& increasesJ
:e; 1he 'icensee sha'' estab'ish ade=uate co$$unication faci'ities 'i4e te'ehone< faA<
co$uter< internet faci'ities< before underta4in& tradin&J
:f; 1he 'icensee sha'' coordinate with #e&iona' +'ectricity Boards or #e&iona' Power
7o$$ittees< as the case $ay be< the #e&iona' 0oad 2esatch 7entres(State 0oad 2esatch
7entres< and 7entra' 1rans$ission ?ti'ity(State 1rans$ission ?ti'ities with re&ard to a''
tradin&! re'ated activitiesJ
:&; 1he 'icensee sha'' render a'' assistance to any erson authorised by the 7o$$ission for
carryin& out his duties re'atin& to the 'icenceJ
:h; 1radin& sha'' be carried out bi'atera''y between the arties by enterin& into aroriate
contracts. Necessary safe&uards with re&ard to su'y of e'ectricity throu&h tradin&< or
ay$ent for the e'ectricity traded sha'' be inc'uded in the a&ree$ents between the arties. A''
tradin& arran&e$ents sha'' be done throu&h the 'etters of credit or with any other suerior
instru$entJ
:i; 1he 'icensee sha'' ay the 'icence fee secified under these re&u'ations in accordance with
the ti$e!schedu'e secified hereunderJ
:>; 1he 'icensee sha'' not o$it or ne&'ect to underta4e tradin& activity for four consecutive
=uartersJ
:4; 1he 'icensee sha'' not enter into any a&ree$ent 'eadin& to abuse of his do$inant osition
or enter into a co$bination which is 'i4e'y to cause or causes an adverse effect on co$etition
in e'ectricity industryJ
:'; 1he 'icensee sha'' $aintain u!to!date record of his custo$ers and the transactions
underta4en by hi$ with other arties.
C# Pro5i7ited Activities
:1; 1he 'icensee sha'' not< without rior arova' of the 7o$$issionC
:i; Ac=uire by urchase or ta4e over or otherwise the uti'ity of any other 'icenseeJ or
:ii; Mer&e his uti'ity with the uti'ity of any other 'icenseeJ or
:iii; Assi&n or transfer his 'icence to any erson< by sa'e< 'ease< eAchan&e or otherwise.
:2; 1he 'icensee sha'' not en&a&e in the business of trans$ission of e'ectricity.
:3; 3herever rior arova' of the 7o$$ission is re=uired< the 'icensee sha'' fi'e an
aroriate a'ication before the 7o$$ission< in accordance with the 7onduct of Business
#e&u'ations.
A# Payment o8 !icence Fee
:1; 1he 'icensee sha'' ay to the 7o$$ission the annua' 'icence fee of the a$ount
secified hereunder< ayab'e by $eans of a de$and draft or ay order drawn in favour
of Assistant Secretary< 7entra' +'ectricity #e&u'atory 7o$$ission< New 2e'hiC
S'. No. 7ate&ory /o'u$e of +'ectricity
roosed to be traded er
annu$ :in Ii'o ! 3att
Gours;
0icence fee
:#s. in 'a4h;
1 A ?to 1.. $i''ion 1...
2 B 1.. to 2.. $i''ion 2...
3 7 2.. to 5.. $i''ion 5...
4 2 5.. to ).. $i''ion )...
5 + ).. to 1... $i''ion 1....
" 8 Above 1... $i''ion 15...
Provided that for a art of the year< the 'icence fee sha'' be ayab'e ro rata on nu$ber
of days basisC
Provided further that the 'icence fee ca'cu'ated on ro rata basis for a art of the year
sha'' be rounded off to nearest hundred ruees.
:2; 1he 'icence fee sha'' be aid by 15
th
Ari' of each year< and in case the 'icensee has
$oved fro$ a 'ower cate&ory to a hi&her cate&ory< the ba'ance of 'icence fee sha'' be aid
before 3.
th
Ari' of each yearC
Provided that the first insta''$ent of the 'icence fee sha'' be aid within a eriod of one
$onth fro$ the date of issue of 'icenceC
Provided further that in case the 'icensee fai's to ay the 'icence fee or a art thereof<
the 'icensee sha'' be 'iab'e to ay 'ate ay$ent surchar&e on the outstandin& a$ount at the
rate of 1B of the 'icence fee ayab'e er $onth or a art of the $onth< for the eriod the
'icence fee or any art thereof re$ains unaid.
:3; Notwithstandin& the 'iabi'ity of the 'icensee to ay the 'ate ay$ent surchar&e as
aforesaid< the de'ay in ay$ent of 'icence fee or a art thereof< sha'' be construed as
breach of the ter$s and conditions of the 'icence and the 'icence sha'' be 'iab'e to be
revo4ed.
%&# Acco/nts o8 t5e !icensee
:1; 1he 'icensee sha'' !
:a; Maintain searate infor$ation and state$ent of accounts for the business of inter!state
tradin& covered by the 'icenceJ
:b; Maintain the state$ent of accounts in such for$ and contain such articu'ars as $ay
be secified by the 7o$$ission and ti'' such ti$e these are secified by the 7o$$ission< the
accounts sha'' be $aintained in accordance with the 7o$anies Act< 1,5"< :1 of 1,5"; as
a$ended fro$ ti$e to ti$eJ
:c; Iee the accounts of the business of inter!state tradin& searate fro$ other business<
whether 'icensed or otherwiseJ
:d; Preare on a consistent basis fro$ such records accountin& state$ents for each
financia' year co$risin& a rofit and 'oss account< a ba'ance sheet and a state$ent of source
and a'ication of funds to&ether with notes thereto and showin& searate'y the a$ounts of
any revenue< cost< asset< 'iabi'ity< reserve< or rovision which has been eitherC
:i; 7har&ed fro$ or to any other business to&ether with a descrition of the basis of that
char&e J or
:ii; 2eter$ined by aortion$ent or a''ocation between the various business activities
to&ether with a descrition of the basis of the aortion$ent or a''ocationJ
:e; Provide in resect of the accountin& state$ents reared in accordance with fore&oin&
c'auses< a reort by the Auditors in resect of each year< statin& whether in their oinion the
state$ents have been roer'y reared and &ive a true and fair view of the revenue< costs<
assets< and 'iabi'ities< reserves reasonab'y attributab'e to the business to which the state$ents
re'ate< and
:f; Sub$it to the 7o$$ission coies of the accountin& state$ents and AuditorDs reort
not 'ater than nine $onths after the c'ose of the year to which they re'ate.
:2; Any erson authorised by the 7o$$ission sha'' be entit'ed to insect and verify the
accounts of the 'icensee and the 'icensee sha'' render a'' necessary assistance to such erson.
%%# S/7mission o8 In8ormation
1he 'icensee sha''<!
:a; Su'y such infor$ation< as $ay be ca''ed for by the 7o$$ission fro$ ti$e to ti$eJ
:b; 8urnish the infor$ation as $ay be re=uired fro$ ti$e to ti$e< to $onitor the
'icenseeNs erfor$ance and co$'iance of the ter$s and conditions of the 'icence and any
other 'e&is'ative or re&u'atory re=uire$ent in 8or$ III aended to these re&u'ations for
sub$ission of infor$ationC
Provided that the infor$ation in the rescribed 8or$ sha'' be furnished to the
#e&iona' 0oad 2esatch 7entre and #e&iona' +'ectricity Board or #e&iona'
Power 7o$$ittee< as the case $ay be with a coy to the 7o$$ission< on a
=uarter'y basis on 1.
th
day of Ari'< Fu'y< 9ctober and Fanuary for the =uarters
Fanuary to March< Ari' to Fune< Fu'y to Sete$ber and 9ctober to 2ece$ber
resective'y and the for$at for sub$ission of infor$ation sha'' be fi''ed u
co$'ete in a'' resects and no co'u$n sha'' be 'eft b'an4C
Provided further that the reort sent to the #e&iona' 0oad 2esatch 7entre and
the #e&iona' +'ectricity Board or the #e&iona' Power 7o$$ittee< as the case
$ay be< sha'' be osted on the website of the e'ectricity trader or any other
authorised websiteC
Provided a'so that the #e&iona' 0oad 2esatch 7entre and #e&iona' +'ectricity
Board or #e&iona' Power 7o$$ittee< as the case $ay be< sha'' verify the
=uantu$ of ener&y traded< as indicated in the reorts and sub$it a reort to the
7o$$ission.
%(# Standards o8 per8ormance
:1; 1he 7o$$ission $ay< after consu'tation with the 'icensee secify the standards of
erfor$ance of a 'icensee or a c'ass of 'icensees.
:2; Notwithstandin& anythin& contained in 7'ause :1; above< the 'icensee sha'' furnish the
erfor$ance detai's for each year to the 7o$$ission on =uarter'y basis for the =uarter endin&
31
st
March< 3.
th
Fune< 3.
th
Sete$ber and 31
st
2ece$ber in the for$at rescribed in 8or$ ! I/
aended to these re&u'ations< by 15
th
day of the first $onth of the fo''owin& =uarter.
%)# Pr/dential +eporting
1he 'icensee sha''< as soon as racticab'e< reort to the 7o$$issionC
:a; Any si&nificant chan&e in his circu$stances which $ay affect the 'icenseeDs abi'ity to
$eet his ob'i&ations under the Act< the #u'es and the #e&u'ations< directions and orders
issued by the 7o$$ission< the -rid 7ode< a&ree$ent or the 'icenceJ
:b; Any $ateria' breach of the rovisions of the Act< the #u'es and the #e&u'ations<
directives and orders issued by the 7o$$ission< the -rid 7ode< a&ree$ent or the 'icenceJ and
:c; Any $a>or chan&e in shareho'din& attern< ownershi or $ana&e$ent of the 'icensee.
%4# Amendment o8 !icence
:1; 1he ter$s and conditions of the 'icence $ay be $odified by the 7o$$ission in ub'ic
interest or on an a'ication $ade by the 'icensee.
:2; 1he rocedure secified in #e&u'ation 4 hereinabove sha'' $utatis $utandis be a'icab'e
in case the 'icensee $a4es an a'ication for any a'teration of or $odification to the ter$s and
conditions of the 'icence.
%B# +evocation o8 !icence
:1; 1he 7o$$ission $ay revo4e the 'icence in accordance with Section 1, of the Act < in any
of the fo''owin& circu$stances< na$e'yC!
:i; 3here the 'icensee in the oinion of the 7o$$ission< $a4es wi'fu' and
ro'on&ed defau't in doin& anythin& re=uired of hi$ by or under the Act< or the #u'es
or the #e&u'ationsJ
:ii; 3here the 'icensee breaches any of the ter$s and conditions of his 'icence< the
breach of which is eAress'y dec'ared by such 'icence to render it 'iab'e to revocationJ
:iii; 3here the 'icensee fai's< within the eriod fiAed in this beha'f by his 'icence< or
any 'on&er eriod which the 7o$$ission $ay a''ow therefor< to show to the
satisfaction of the 7o$$ission< that he is in a osition fu''y and efficient'y to
dischar&e the duties and ob'i&ations i$osed on hi$ by his 'icenceJ
:iv; 3here in the oinion of the 7o$$ission the financia' osition of the 'icensee
is such that he is unab'e to fu''y and efficient'y dischar&e the duties and ob'i&ations i$osed
on hi$ by his 'icenceJ
:v; 3here 'icensee has fai'ed or ne&'ected to underta4e tradin& in e'ectricity for
four conse=uent =uartersJ
Provided that the 'icence sha'' not be revo4ed eAcet after an en=uiry by
the ad>udicatin& officer aointed by the 7o$$ission under Section 143 of the
Act in the $anner rescribed by the 7entra' -overn$entC
Provided further that the 7o$$ission $ay< instead of revo4in& a 'icence
under c'ause :1; above< er$it the 'icence to re$ain in force sub>ect to such
further ter$s and conditions as it thin4s fit to i$ose< and any further ter$s and
conditions so i$osed sha'' be bindin& uon and be observed by the 'icensee
and sha'' be of 'i4e force and effect as if they were contained in the 'icence.
:2; 3hen the 'icensee $a4es an a'ication for revocation of the 'icence and the 7o$$ission
is satisfied that ub'ic interest so re=uires< the 7o$$ission $ay revo4e his 'icence< on such
ter$s and conditions as it thin4s fit.
:3; 1he 7o$$ission sha'' serve a notice of revocation uon the 'icensee and fiA a date on
which the revocation sha'' ta4e effect.
%'# Comm/nication
:1; A'' co$$unications re'atin& to the 'icence sha'' be in writin& and sha'' be de'ivered either
in erson to the addressee or his authoriEed a&ent< or sent by re&istered or seed ost at the
'ace of business of the addressee.
:2; A'' co$$unications sha'' be re&arded to have been &iven by the sender and received by
the addressee< 6
:i; when de'ivered in erson to the addressee or to his authorised a&entJ
:ii; on eAiry of 15 days fro$ the date of sendin& by re&istered or seed ost at the
address of the addressee.
%E# Po:er to rela>
1he 7o$$ission $ay in aroriate cases and for reasons to be recorded in writin& re'aA any
of the rovisions of these re&u'ations.
:A.I. SA7GAN;S+7#+1A#L
89#M ! I
A'ication for$ for &rant of Inter!State 1radin& 0icence
Particu'ars of the A'icant
1 Na$e of the a'icant C
2 Address C
3 Na$e< 2esi&nation % AddressC of the contact erson
4 7ontact 1e'. Nos. C
5 8aA No. C
" +!$ai' I2 C
) P'ace of Incororation(#e&istration C
* Lear of Incororation(#e&istration C
, 8o''owin& docu$ents are to be enc'osed a; 7ertificate of re&istration C b; 7ertificate
for co$$ence$ent C
of business c; Me$orandu$ of
Association and Artic'esof Association C
d; 9ri&ina' ower of attorney of the C
si&natory to co$$it the A'icant or
its ro$otere; 2etai's of Inco$e taA
#e&istration C
2etai's of 8inancia' 2ata of A'icant
1.. Net worth :in e=uiva'ent Indian #uees!conversion to be done at the rate of eAchan&e
revai'in& at the end of each year; for i$$ediate ast 5 :five; financia' years.
:Secify financia' year as a'icab'e;
:22(MM(LL; to :22(MM(LL; In Go$e +Achan&e In e=uiva'ent 7urrency rate used
Indian #s.
1 :a; Lear 1: ; to : ; !!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
2 :b; Lear 2: ; to : ; !!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!
3 :c; Lear 3: ; to : ; !!!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
4 :d; Lear 4: ; to : ; !!!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
5 :e; Lear 5: ; to : ; !!!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
" :f; 7oies of Annua' #eorts or certified audited resu'ts to be enc'osed in suort of
above.
11. Annua' turnover :in e=uiva'ent Indian #uees ! conversion to be done at the rate of
eAchan&e revai'in& at the end of each year; for i$$ediate ast 5 :five; financia'
years. :Secify financia' year as a'icab'e;
:22(MM(LL; to :22(MM(LL; In Go$e +Achan&e In e=uiva'ent 7urrency rate used
Indian #s.
1 :a; Lear 1: ; to : ; !!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
2 :b; Lear 2: ; to : ; !!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!
3 :c; Lear 3: ; to : ; !!!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
4 :d; Lear 4: ; to : ; !!!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
5 :e; Lear 5: ; to : ; !!!!!!!!!!!! !!!!!!!!!!!!! !!!!!!!!!!!!!!
" :f; 7oies of Annua' #eorts or certified audited resu'ts to be enc'osed in suort
of above.
12. 0ist of docu$ents enc'osed in suort of S'. Nos. :1.; and :11; aboveC
Na$e of the docu$ent
1 :a; YYYYYYYYYYYYYYY
2 :b; YYYYYYYYYYYYYYY
3 :c; YYYYYYYYYYYYYYY
4 :d; YYYYYYYYYYYYYYY
13. :a; 3hether a'icant hi$se'f sha'' be financin& the roosed tradin& Les(No fu''y
on its own ba'ance sheet
:b; If< yes< roosed e=uity fro$ the a'icant
1 :i; A$ount C
2 :ii; Percenta&e C
14. In case the a'icant rooses to tie u with so$e
other A&ency for e=uity< then na$e % address of
such a&encyC
:a;Na$e< desi&nation % Address of reference C erson of
the other A&ency
1 :b; 7ontact 1e'. No. C
2 :c; 8aA No. C
3 :d; +!$ai' I2 C
1 :e; Proosed e=uity fro$ the other A&ency
2 :i; A$ount C
3 :ii; Percenta&e of tota' e=uity C
4 :iii; 7urrency in which the e=uity C is roosed
4 :f; 7onsent 'etter of the other a&ency to associate with the a'icant for e=uity
articiation to be enc'osed.
5 :&; Nature of roosed tie!u between the a'icant and the other a&ency.
15. 2etai's of debt roosed for the tradin& activityC
1 :a; 2etai's of 'enders C
2 :b; A$ount to be sourced fro$C various 'enders
3 :c; 0etters fro$ the 'enders in suort C of the above to be enc'osed.
. 1". 9r&anisationa' % Mana&eria' 7aabi'ity of the a'icantC
1 :1he a'icant is re=uired to enc'ose roof of their 9r&anisationa' %
Mana&eria' 7aabi'ity< in ter$s of these re&u'ations< in for$ of roosed
or&anisationa' structure % curricu'a vitae of various eAecutives< roosed
office and co$$unication faci'ities< etc.;
2 Aroach % Methodo'o&yC
:1he a'icant is re=uired to describe aroach % $ethodo'o&y for
estab'ish$ent of the tradin& arran&e$ents as roosed by hi$.;
:Si&nature of the A'icant; 2ated C
89#M II
7+N1#A0 +0+71#I7I1L #+-?0A19#L 79MMISSI9N
0I7+NS+ 19 1#A2+ IN +0+71#I7I1L AS AN +0+71#I7I1L 1#A2+#
1 1he 7entra' +'ectricity #e&u'atory 7o$$ission :hereinafter referred to as Pthe
7o$$issionQ;< in eAercise of the owers conferred under Section 14 of the +'ectricity
Act< 2..3 :hereinafter referred to as Pthe ActQ;< hereby &rants this 'icence as a
7ate&ory YYYYYYYYY trader to YYYYYYYYYYYY< :hereinafter referred to as Pthe
'icenseeQ; to trade in e'ectricity as an e'ectricity trader in the area YYYYYYYYY sub>ect
to the ter$s and conditions contained in the Act< :in articu'ar< Sections 1) to 22
thereof< both inc'usive;< the #u'es $ade by the 7entra' -overn$ent :hereinafter
referred to as Pthe #u'esQ; and the #e&u'ations secified by the 7o$$ission :herein
after referred to as Pthe #e&u'ationsQ;< inc'udin& statutory a$end$ents< a'terations<
$odifications< reenact$ents thereof< which sha'' be read as art and arce' of this
'icence.
2 1his 'icence is not transferab'e< eAcet in accordance with the rovisions of the Act<
the #u'es and the #e&u'ations.
1 3. :1; 1he 'icensee sha'' not without rior arova' of the 7o$$issionW
2 :a; underta4e any transaction to ac=uire by urchase or ta4e over or otherwise<
the uti'ity of any other 'icenseeJ or
3 :b; $er&e its uti'ity with uti'ity of any other 'icenseeJ
4 :2; 1he 'icensee sha'' not at any ti$e assi&n its 'icence< or transfer its uti'ity< or
any art thereof< by sa'e< 'ease< eAchan&e or otherwise without the rior
arova' of the 7o$$ission
5 :3; Any a&ree$ent re'atin& to any transaction referred to in sub!c'ause :1; and
sub!c'ause :2; un'ess $ade with the arova' of the 7o$$ission< sha'' be void.
3 1he &rant of this 'icence to the 'icensee sha'' not in any way hinder or restrict the ri&ht
of the 7o$$ission to &rant a 'icence to any other erson within the sa$e area for
tradin& in e'ectricity as an e'ectricity trader. 1he 'icensee sha'' not c'ai$ any
eAc'usivity.
4 1his 'icence sha'' co$$ence on the date of its issue and un'ess revo4ed ear'ier< sha''
continue to be in force for a eriod of 25 :twenty five; years.
1 ". 1he 'icensee $ay with rior inti$ation to the 7o$$ission< en&a&e in
any business for oti$u$ uti'isation of its assets.
2 Provided that the 'icensee sha'' not en&a&e in the business of trans$ission of
e'ectricity.
3 ). ?n'ess otherwise secified by the 7o$$ission< the 'icensee sha'' ay
annua' 'icense fee of #s.YYY'a4h< and 'icense fee for a art of the year sha'' be
aid on ro!rata basis rounded off to the nearest hundred ruees.
4 8or the urose of this c'ause< the RyearR $eans a eriod of twe've $onths
fro$ 1
st
Ari' of a ca'endar year to 31
st
March of the fo''owin& ca'endar year.
5 1he rovisions contained in Sections 1, to 22< both inc'usive< of the Act sha'' a'y to
the 'icensee with re&ard to revocation of 'icence and sa'e of his uti'ity.
Sd(!
:A.I.
SA7GAN;S+7#+1A#L
Profor$a for sub$ission of infor$ation for the Huarter :say Fanuary to March< 2..4;
89#M ! III
Na$e of the 1raderC
0icense detai's :No % date;C
S.No. /o'u$e
of
1radin&
in
$i''ion
Iwhs
Purchased
fro$Z
So'd
toZ
Point of
urchase
Purchase
rice
Point
of sa'e
Sa'e
rice
1rans$issio
n(whee'in&
char&es
borne by
Se''er(1rade
r(BuyerZZ
1rans$issio
n 'osses
borne by
Se''er(
1rader(
BuyerZZ
?I
char&es
borne
by
Se''er(
BuyerZZ
1radin&
$ar&in
char&ed
#e$ar4s
NoteC A'' the transactions sha'' be reorted transaction!wise on rea' ti$e basis and shou'd not be a&&re&ated.
Z Besides the na$e of the se''er(buyer< indicate the cate&ory of the se''er(buyer na$e'y &enerator< cative ower 'ant< distribution
'icensee< -overn$ent< consu$er :when a'icab'e; etc. ZZ
Stri4e out whichever is not a'icab'e.
89#M ! I/
Profor$a for sub$ission of Standards of Perfor$ance of +'ectricity 1rader
:to be sub$itted to the 7o$$ission and #027;
Na$e of the 1raderC
0icense detai's :No. % date;C
S.No. /o'u$e of 7u$u'ative 3hether 3hether 3hether 3hether any Pay$ent #e$ar4s
tradin& durin& tradin& uto the there is any networth is additiona' vio'ation to trac4 record
the =uarter resent =uarter chan&e in the increased< 'icense fee< the 'icense for ener&y
cate&ory of due to chan&e due to conditions urchased
trader of cate&ory chan&e in ointed out for tradin&
cate&ory by any
deosited a&ency or
with the observed by
7o$$ission the 'icensee
hi$se'f
:Les ( No; :Les ( No; :Les ( No;
NoteC i; A searate coy of du'y fi''ed 8or$ I/ sha'' a'so be sub$itted to the 7o$$ission direct'y. ii; #027 sha'' verify the vo'u$e of
tradin& % ass on the 8or$ I/ to the 7o$$ission.

!IST "F C!EA+ANCES +EG,I+ED F"+ P"WE+ P+"-ECTS
S'.
No
I1+M A-+N7L #+MA#IS
S1A1?19#L 70+A#AN7+S
1 79N7?##+N7+ 98 7+A for
hydro e'ectric &eneration
sche$es.
7+A ?nder section * of +'ectricity Act<
2..3.
2 3A1+# A/AI0ABI0I1LC State -ovt.
737
Interaction between State -ovt.Ds
2etts % 737 re=uired. #e'evant
Irri&ation Act of the State %
7entra'(3ater 7o$$ission.
3 P900?1I9N 70+A#AN7+
3A1+# AN2 AI#
SP7B 3ater Prevention % 7ontro' Po''ution
Act 1,)4 Air(Prevention % 7ontro' of
Po''ution Act 1,*1
4. 89#+S1 70+A#AN7+ State -ovt
Min.
of +%8
7oordination with State 8orest 2ett.
Min. of +nviron$ent % 8orest
: re&ardin& 8orest 7onservation Act
1,*.;
5. +N/I#9NM+N1 % 89#+S1
70+A#AN7+
! do ! As er ite$ "< ) % -ovt. Po'icy in
force
" 7I/I0 A/IA1I9N
70+A#AN7+ 89#
7GIMN+L G+I-G1
Nationa' Airort
Authority
) #+-IS1#A1I9N 98
79MPANL
#e&istrar of 7o$!
anies
?nder Indian 7o$anies Act< 1,5"
* #+GABI0I1A1I9N %
#+S+110+M+N1 98
2ISP0A7+2 8AMI0I+S BL
0AN2 A7H?ISI1I9N
Mo+8(
State -ovt.
, GL2#9 P#9F+71S:MINI!
MI7#9;
Ministry of 3ater
#esources
?nder #e'evant Acts.
1. +H?IPM+N1
P#97?#+M+N1
2-12( 77I%+Z I$ort % +Aort Acts.
N9N!S1A1?19#L 70+A#AN7+S
14 0AN2 A/AI0ABI0I1L State -ovt.
15 8?+0 0INIA-+ 2ett of 7oa'<
2ett. of Petro'eu$
% Natura' -as
1" 8INAN7IN- 8inancia' Institutions
1) 1#ANSP9#1A1I9N 98
8?+0
2ett of 7oa'<
Min. of Petro'eu$ %
Natura' -as<
Ministry of
#ai'ways< Shiin&
% Surface 1ransort
Z Not re=uired any $ore
Environmental delegation orders
0INIST+1 "F EN.I+"N0ENT AND F"+ESTS
EN.I+"N0ENT I0PACT ASSESS0ENT N"TIFICATI"N S#"#'&$E*; dated
(EJ&%J%AA4
$incorporating amendments vide S#"# )B'$E* dated 4JBJ%AA4; S#"# )%C$E* dated
%&J4J%AAE; S#"# )%A dated %&J4J%AAE; S#"# E)$E* dated (EJ%J(&&&; S#"# %%%A$E* dated
%)J%(J(&&&; S#"# E)E$E* dated %JCJ(&&%; S#"# %%4C$E* dated (%J%%J(&&%; S#"# ')($E* dated
%)J&'J(&&( *
1; S#"# '& $E*3 3hereas a notification under c'ause :a; of sub!ru'e :3; of ru'e 5 of the
+nviron$ent :Protection; #u'es< 1,*" invitin& ob>ections fro$ the ub'ic within siAty
days fro$ the date of ub'ication of the said notification< a&ainst the intention of the
7entra' -overn$ent to i$ose restrictions and rohibitions on the eAansion and
$oderniEation of any activity or new ro>ects bein& underta4en in any art of India un'ess
environ$enta' c'earance has been accorded by the 7entra' -overn$ent or the State
-overn$ent in accordance with the rocedure secified in that notification was ub'ished
as S9 No. *.:+; dated 2*
th
Fanuary< 1,,3J
And whereas a'' ob>ections received have been du'y consideredJ
Now< therefore< in eAercise of the owers conferred by sub!section :1; and c'ause :v;
of sub!section :2; of section 3 of the +nviron$ent :Protection; Act< 1,*" :2, of 1,*";
read with c'ause :d; of sub!ru'e :3; of ru'e 5 of the +nviron$ent :Protection; #u'es<
1,*"< the 7entra' -overn$ent hereby directs that on and fro$ the date of ub'ication
of this notification in the 9fficia' -aEette< eAansion or $oderniEation of any activity
:if o''ution 'oad is to eAceed the eAistin& one< or new ro>ect 'isted in Schedu'e I to
this notification< sha'' not be underta4en in any art of India un'ess it has been
accorded environ$enta' c'earance by the 7entra' -overn$ent in accordance with the
rocedure hereinafter secified in this notificationJ
2; #e=uire$ents and rocedure for see4in& environ$enta' c'earance of ro>ectsC
I.:a; Any erson who desires to underta4e any new ro>ect in any art of India or the
eAansion or $oderniEation of any eAistin& industry or ro>ect 'isted in the Schedu'e!
I sha'' sub$it an a'ication to the Secretary< Ministry of +nviron$ent and 8orests<
New 2e'hi.
1he a'ication sha'' be $ade in the rofor$a secified in Schedu'e!II of this notification
and sha'' be acco$anied by a ro>ect reort which sha''< inter a'ia< inc'ude an
+nviron$enta' I$act Assess$ent #eort< +nviron$ent Mana&e$ent P'an and detai's of
ub'ic hearin& as secified in Schedu'e!I/ reared in accordance with the &uide'ines
issued by the 7entra' -overn$ent in the Ministry of +nviron$ent and 8orests fro$ ti$e
to ti$e. Gowever< Pub'ic Gearin& is not re=uired in resect of :i; s$a'' sca'e industria'
underta4in&s 'ocated in :a; notified(desi&nated industria' areas(industria' estates or :b;
areas ear$ar4ed for industries under the >urisdiction of industria' deve'o$ent authoritiesJ
:ii; widenin& and stren&thenin& of hi&hwaysJ :iii; $inin& ro>ects :$a>or $inera's; with
'ease area u to twenty five hectares< :iv; units 'ocated in +Aort Processin& @ones<
Secia' +cono$ic @ones and :v; $odernisation of eAistin& irri&ation ro>ects.
Provided that for ie'ine ro>ects< +nviron$enta' I$act Assess$ent reort wi'' not be
re=uiredC
Provided further< that for ie'ine and hi&hway ro>ects< ub'ic hearin& sha'' be conducted
in each district throu&h which the ie'ine or hi&hway asses throu&h.
:b; 7ases re>ected due to sub$ission of insufficient or inade=uate data and P'an $ay be
reviewed as and when sub$itted with co$'ete data and P'an. Sub$ission of
inco$'ete data or 'ans for the second ti$e wou'd itse'f be a sufficient reason for the
I$act assess$ent A&ency to re>ect the case su$$ari'y.
II. In case of the fo''owin& site secific ro>ectsC
a. $inin&J
b. it!head ther$a' ower stationsJ
c. hydro!ower< $a>or irri&ation ro>ects and(or their co$bination inc'udin& f'ood
contro'J
d. orts and harbours :eAc'udin& $inor orts;J
e. rosectin& and eA'oration of $a>or $inera's in areas above 5.. hectaresJ
1he ro>ect authorities wi'' inti$ate the 'ocation of the ro>ect site to the
7entra' -overn$ent in the Ministry of +nviron$ent and 8orests whi'e
initiatin& any investi&ation and surveys. 1he 7entra' -overn$ent in the
Ministry of +nviron$ent and 8orests wi'' convey a decision re&ardin&
suitabi'ity or otherwise of the roosed site within a $aAi$u$ eriod of thirty
days. 1he said site c'earance sha'' be &ranted for a sanctioned caacity and
sha'' be va'id for a eriod of five years for co$$encin& the construction<
oeration or $inin&.
III. :a; 1he reorts sub$itted with the a'ication sha'' be eva'uated and assessed by the
I$act Assess$ent A&ency< and if dee$ed necessary it $ay consu't a co$$ittee of
+Aerts< havin& a co$osition as secified in Schedu'e!III of this Notification. 1he
I$act Assess$ent A&ency :IAA; wou'd be the ?nion Ministry of +nviron$ent
and 8orests. 1he 7o$$ittee of +Aerts $entioned above sha'' be constituted by
the I$act Assess$ent A&ency or such other body under the 7entra' -overn$ent
authorised by the I$act Assess$ent A&ency in this re&ard.
:b; 1he said 7o$$ittee of +Aerts sha'' have fu'' ri&ht of entry and
insection of the site or< as the case $ay be< factory re$ises at any ti$e rior to<
durin& or after the co$$ence$ent of the oerations re'atin& to the ro>ect.
:c; 1he I$act Assess$ent A&ency sha'' reare a set of reco$$endations based on
technica' assess$ent of docu$ents and data< furnished by the ro>ect authorities
su'e$ented by data co''ected durin& visits to sites or factories< if underta4en and
detai's of the ub'ic hearin&.
1he assess$ent sha'' be co$'eted within a eriod of ninety days fro$ receit of
the re=uisite docu$ents and data fro$ the ro>ect authorities and co$'etion of
ub'ic hearin& and decision conveyed within thirty days thereafter.
1he c'earance &ranted sha'' be va'id for a eriod of five years for co$$ence$ent
of the construction or oeration of the ro>ect.
I/. In order to enab'e the I$act Assess$ent A&ency to $onitor effective'y the
i$'e$entation of the reco$$endations and conditions sub>ect to which the
environ$enta' c'earance has been &iven< the ro>ect authorities concerned sha'' sub$it
a ha'f year'y reort to the I$act Assess$ent A&ency. Sub>ect to the ub'ic interest<
the I$act Assess$ent A&ency sha'' $a4e co$'iance reorts ub'ic'y avai'ab'e.
/. If no co$$ents fro$ the I$act Assess$ent A&ency are received within the ti$e 'i$it<
the ro>ect wou'd be dee$ed to have been aroved as roosed by ro>ect authorities.
3; Nothin& contained in this Notification sha'' a'y toC
a. any ite$ fa''in& under entry Nos. 3< 1* and 2. of the Schedu'e!I to be 'ocated or
roosed to be 'ocated in the areas covered by the Notifications S.9. No.1.2
:+; dated 1
st
8ebruary< 1,*,< S.9. 114 :+; dated 2.
th
8ebruary< 1,,1J S.9. No.
41" :+; dated 2.
th
Fune< 1,,1 and S.9. No.31, :+; dated )
th
May< 1,,2.
b. any ite$ fa''in& under entry no.1<2<3<4<5<)<,<1.<13<14<1"<1)<1,<21<25<2) of
Schedu'e!I if the invest$ent is 'ess than #s.1.. crores for new ro>ects and 'ess
than #s. 5. crores for eAansion ( $oderniEation ro>ects.
c. any ite$ reserved for S$a'' Sca'e Industria' Sector with invest$ent 'ess than
#s. 1 crore.
d. defence re'ated road construction ro>ects in border areas.
e. any ite$ fa''in& under entry no. * of Schedu'e!I< if that roduct is covered by
the notification -.S.#. 1.3):+; dated 5
th
2ece$ber 1,*,.
f. ModerniEation ro>ects in irri&ation sector if additiona' co$$and area is 'ess
than 1.<... hectares or ro>ect cost is 'ess than #s. 1.. crores.
4; 7oncea'in& factua' data or sub$ission of fa'se< $is'eadin& data(reorts< decisions or
reco$$endations wou'd 'ead to the ro>ect bein& re>ected. Arova'< if &ranted ear'ier on
the basis of fa'se data< wou'd a'so be revo4ed. Mis'eadin& and wron& infor$ation wi''
cover the fo''owin&C
o 8a'se infor$ation
o 8a'se data
o +n&ineered reorts
o 7oncea'in& of factua' data
o 8a'se reco$$endations or decisions
SCDED,!E3I
$See paras % and (*
!IST "F P+"-ECTS +EG,I+IN2 EN.I+"N0ENTA! C!EA+ANCE F+"0 TDE
CENT+A! 2".E+N0ENT

1. Nuc'ear Power and re'ated ro>ects such as Geavy 3ater P'ants< nuc'ear fue' co$'eA<
#are +arths.
2. #iver /a''ey ro>ects inc'udin& hyde' ower< $a>or Irri&ation and their co$bination
inc'udin& f'ood contro'.
3. Ports< Garbours< Airorts :eAcet $inor orts and harbours;.
4. Petro'eu$ #efineries inc'udin& crude and roduct ie'ines.
5. 7he$ica' 8erti'iEers :Nitro&enous and Phoshatic other than sin&'e suerhoshate;.
". Pesticides :1echnica';.
). Petroche$ica' co$'eAes :Both 9'efinic and Aro$atic; and Petro!che$ica'
inter$ediates such as 2M1< 7aro'acta$< 0AB etc. and roduction of basic 'astics
such as 002P+< G2P+< PP< P/7.
*. Bu'4 dru&s and har$aceutica's.
,. +A'oration for oi' and &as and their roduction< transortation and stora&e.
1.. Synthetic #ubber.
11. Asbestos and Asbestos roducts.
12. Gydrocyanic acid and its derivatives.
13 :a; Pri$ary $eta''ur&ica' industries :such as roduction of Iron and Stee'< A'u$iniu$<
7oer< @inc< 0ead and 8erro A''oys;.
:b; +'ectric arc furnaces :Mini Stee' P'ants;.
14. 7h'or a'4a'i industry.
15. Inte&rated aint co$'eA inc'udin& $anufacture of resins and basic raw $ateria's
re=uired in the $anufacture of aints.
1". /iscose Sta'e fibre and fi'a$ent yarn.
1). Stora&e batteries inte&rated with $anufacture of oAides of 'ead and 'ead anti$ony
a''oys.
1*. A'' touris$ ro>ects between 2..$W5.. $etres of Gi&h 3ater 0ine and at 'ocations
with an e'evation of $ore than 1... $etres with invest$ent of $ore than #s.5 crores.
1,. 1her$a' Power P'ants.
2.. Minin& ro>ects :$a>or $inera's; with 'eases $ore than 5 hectares.
21. Gi&hway Pro>ects eAcet ro>ects re'atin& to i$rove$ent wor4 inc'udin& widenin&
and stren&thenin& of roads with $ar&ina' 'and ac=uisition a'on& the eAistin&
a'i&n$ents rovided it does not ass throu&h eco'o&ica''y sensitive areas such as
Nationa' Par4s< Sanctuaries< 1i&er #eserves< #eserve 8orests
22. 1arred #oads in the Gi$a'ayas and or 8orest areas.
23. 2isti''eries.
24. #aw S4ins and Gides
25. Pu'< aer and newsrint.
2". 2yes.
2). 7e$ent.
2*. 8oundries :individua';
2,. +'ectro'atin&
3.. Meta a$ino heno'
SCDED,!E3II
NSee S/73para I $a* o8 para (O
Proced/re 8or see9ing environment clearance o8 pro=ects#
1. :1; Any ersons who desires to estab'ish a ther$a' ower 'ant of any cate&ory
$entioned n Schedu'e!I< sha'' sub$it an a'ication to the 2eart$ent of the State
-overn$ent dea'in& with the sub>ect of environ$ent.
:2; 1he a'ication sha'' be $ade in the 8or$ KAD secified in Schedu'e!II anneAed
to this notification and sha'' be acco$anied by a detai'ed ro>ect reort which sha''< inter
a'ia< inc'ude an +nviron$enta' I$act Assess$ent #eort and an +nviron$ent Mana&e$ent
'ant reared n accordance with the &uide'ines issued by the State 2eart$ent of
+nviron$ent fro$ ti$e to ti$e.
:3; 7ases re>ected due to sub$ission of insufficient or inade=uate data and Action
P'ans $ay be reviewed as and when sub$itted with co$'ete data and Action P'ans.
Sub$ission of inco$'ete data for the second ti$e wou'd itse'f be a sufficient reason for the
State -overn$ent to re>ect the case su$$ari'y.
5; In case of the it!head ther$a' ower 'ants< the a'icant sha'' inti$ate the 'ocation of the
ro>ect site to the State -overn$ent whi'e initiatin& any investi&ation and surveys. 1he State
-overn$ent wi'' convey a decision re&ardin& suitabi'ity or otherwise of the roosed site
within a $aAi$u$ eriod of thirty days. 1he said site c'earance wi'' be &ranted for a
sanctioned caacity and it wi'' be va'id for a eriod of five years for co$$encin& the
construction or oeration of the ro>ect.
3. :1; 1he a'icant sha'' obtained No 9b>ection 7ertificate fro$ the concerned
Po''ution 7ontro' Board. 1he State Po''ution 7ontro' Board sha'' issue No 9b>ection
7ertificate to estab'ish on'y after co$'etin& ub'ic hearin& as secified in Schedu'e!I/
anneAed to this notification.
:2; 1he reorts sub$itted with the a'ication and No 9b>ection 7ertificate fro$
the State Po''ution 7ontro' Board sha'' be eva'uated and assessed by the State -overn$ent< in
consu'tation with a 7o$$ittee of eAerts which sha'' be constituted by the State -overn$ent
as secified in Schedu'e!III aended to this notification.
:3; 1he said 7o$$ittee of eAerts sha'' have fu'' ri&ht of entry and insection of
the site or< as the case $ay be< factory re$ises at any ti$e rior to< durin& or after the
co$$ence$ent of the rearations re'atin& to the 'ant.
:4; 1he State -overn$ent 2eart$ent dea'in& with the sub>ect of +nviron$ent
sha'' reare a set of reco$$endations based on technica' assess$ent of docu$ents and data
furnished by the a'icant su'e$ented by data co''ected durin& visits to sites< if underta4en
and interaction with affected ou'ation and environ$ent &rous< if necessary.
:5; 1he assess$ent sha'' be co$'eted within a eriod of ninety days fro$ receit
of the re=uisite docu$ents and data fro$ the a'icant and decision conveyed within thirty
days thereafter.
:"; the environ$enta' c'earance &ranted sha'' be va'id for a eriod of five years
fro$ co$$ence$ent of the construction or oeration of the ro>ect.
4. 7oncea'in& factua' data or sub$ission of fa'se<
$is'eadin& data reorts< decisions of reco$$endations wou'd 'ead to the ro>ect bein&
re>ected. Arova'< if &ranted< ear'ier on the basis of fa'se data< can a'so be revo4ed.
$F"+0 A*
APP!ICATI"N F"+0
1. :a; Na$e and Address of the ro>ect roosed C
:b; 0ocation of the ro>ectC
Na$e of the P'aceC
2istrict< 1ehsi'C
0atitude(0on&itudeC
Nearest Airort(#ai'way Station C
:c; A'ternate sites eAa$ined and the reasons for se'ectin& the roosed siteC
:d; 2oes the site confor$ to stiu'ated 'and use as er 'oca' 'and use 'anC

2. 9b>ectives of the ro>ectC
3. :a; 0and #e=uire$entC
A&ricu'ture 0andC
8orest 'and and 2ensity of ve&etation.
9ther :secify;C
:b; :i; 0and use in the 7atch$ent within 1. 4$s radius of the roosed siteC
:ii; 1oo&rahy of the area indicatin& &radient< asects and a'titudeC
:iii; +rodibi'ity c'assification of the roosed 'andC
:c; Po''ution sources eAistin& in 1. 4$ radius and their i$act on =ua'ity of air< water
and 'andC
:c; 2istance of the nearest Nationa' Par4(Sanctuary(Bioshere
#eserve(Monu$ents(herita&e site(#eserve 8orestC
:d; #ehabi'itation 'an for =uarries(borrow areasC
:e; -reen be't 'anC
:f; 7o$ensatory afforestation 'anC
4. 7'i$ate and Air Hua'ityC
:a; 3indrose at siteC
:b; MaA(Min(Mean annua' te$eratureC
:c; 8re=uency of inversionC
:d; 8re=uency of cyc'ones(tornadoes(c'oud burstC
:e; A$bient air =ua'ity dataC
:f; Nature % concentration of e$ission of SPM< -as :79< 792< N9A< 7Gn etc.;
fro$ the ro>ectC
5. 3ater ba'anceC
:a; 3ater ba'ance at siteC
:b; 0ean season water avai'abi'ityJ
3ater #e=uire$entC
:c; Source to be taed with co$etin& users :#iver< 0a4e< -round< Pub'ic
su'y;C
:d; 3ater =ua'ityC
:e; 7han&es observed in =ua'ity and =uantity of &roundwater in the 'ast years and
resent char&in& and eAtraction detai'sC
:f; :i; Huantu$ of waste water to be re'eased with
treat$ent detai'sC
:ii; Huantu$ of =ua'ity of water in the receivin& body before and after
disosa' of so'id wastesC
:iii; Huantu$ of waste water to be re'eased on 'and and tye of 'andC
:&; :i; 2etai's of reservoir water =ua'ity with necessary 7atch$ent 1reat$ent
P'anC
:ii; 7o$$and Area 2eve'o$ent P'anC
". So'id wastesC
:a; Nature and =uantity of so'id wastes &enerated
:b; So'id waste disosa' $ethodC
). Noise and /ibrationsC
a. Sources of Noise and /ibrationsC
b. A$bient noise 'eve'C
c. Noise and /ibration contro' $easures roosedC
d. Subsidence rob'e$< if any< with contro' $easuresC
*. Power re=uire$ent indicatin& source of su'yC 7o$'ete environ$enta' detai's to be
furnished searate'y< if cative ower unit roosedC
,. Pea4 'abour force to be de'oyed &ivin& detai's ofC
o +nde$ic hea'th rob'e$s in the area due to waste water(air(soi' borne diseasesC
o Gea'th care syste$ eAistin& and roosedC
1.. :a; Nu$ber of vi''a&es and ou'ation to be dis'acedC
:b; #ehabi'itation Master P'anC
11. #is4 Assess$ent #eort and 2isaster Mana&e$ent P'anC
12. :a; +nviron$enta' I$act Assess$ent
:b; +nviron$ent Mana&e$ent P'anC
:c; 2etai'ed 8easibi'ity #eortC
:a; 2u'y fi''ed in =uestionnaire
#eort reared as er &uide'ines issued by the 7entra' -overn$ent in the M9+8 fro$
ti$e to ti$eC
13. 2etai's of +nviron$enta' Mana&e$ent 7e''C
I hereby &ive an underta4in& that the data and infor$ation &iven above are due to the best
of $y 4now'ed&e and be'ief and I a$ aware that if any art of the data(infor$ation sub$itted
is found to be fa'se or $is'eadin& at any sta&e< the ro>ect be re>ected and the c'earance &iven<
if any< to the ro>ect is 'i4e'y to be revo4ed at our ris4 and cost.
Si&nature of the a'icant
3ith na$e and fu'' address
-iven under the sea' of 9r&anisation
on beha'f of 3ho$ the a'icant is si&nin&.
2ateC
P'aceC
In resect to ite$ for which data are not re=uired or is not avai'ab'e as er the dec'aration of
ro>ect roonent< the ro>ect wou'd be considered on that basis.

SCDED,!E3III
NSee S/7# Para$(*; Para ) o8 Sc5ed/le3 IIO
C"0P"SITI"N "F TDE EXPE+T C"00ITTEES F"+ EN.I+"N0ENTA!
I0PACT ASSESS0ENT

1. 1he 7o$$ittees wi'' consist of eAerts in the fo''owin& disci'inesC
i. +co!syste$ Mana&e$ent
ii. Air(3ater Po''ution 7ontro'
iii. 3ater #esource Mana&e$ent
iv. 8'ora(8auna conservation and $ana&e$ent
v. 0and ?se P'annin&
vi. Socia' Sciences(#ehabi'itation
vii. Pro>ect Araisa'
viii. +co'o&y
iA. +nviron$enta' Gea'th
A. Sub>ect Area Secia'ists
Ai. #eresentatives of N-9s(ersons concerned with
environ$enta' issues.
2. 1he 7hair$an wi'' be an outstandin& and eAerienced eco'o&ist or environ$enta'ist or
technica' rofessiona' with wide $ana&eria' eAerience in the re'evant deve'o$ent
sector.
3. 1he reresentative of I$act Assess$ent A&ency wi'' act as a Me$ber!Secretary.
4. 7hair$an and Me$bers wi'' serve in their individua' caacities eAcet those
secifica''y no$inated as reresentatives.
5. 1he Me$bershi of a 7o$$ittee sha'' not eAceed 15.
SCDED,!E I.
$See para ); s/7paragrap5 $(* o8 Sc5ed/le3 II*
P+"CED,+E F"+ P,!IC DEA+IN2
:1; Process o8 P/7lic DearingC ! 3hoever a'y for environ$enta' c'earance of ro>ects<
sha'' sub$it to the concerned State Po''ution 7ontro' Board twenty sets of the fo''owin&
docu$ents na$e'yC !
i. An eAecutive su$$ary containin& the sa'ient features of the ro>ect both in
+n&'ish as we'' as the 'oca' 'an&ua&e a'on& with +nviron$enta' I$act
Assess$ent :+IA;. Gowever< for ie'ine ro>ect< +nviron$enta' I$act
Assess$ent reort wi'' not be re=uired. But +nviron$enta' Mana&e$ent P'an
inc'udin& ris4 $iti&ation $easures is re=uired.
i. 8or$ 5III rescribed under 3ater :Prevention and 7ontro' of Po''ution; #u'es<
1,)5 where dischar&e of sewa&e< trade eff'uents< treat$ent of water in any
for$< is re=uired.
ii. 8or$ I rescribed under Air :Prevention and 7ontro' of Po''ution; ?nion
1erritory #u'es< 1,*3 where dischar&e of e$issions are invo'ved in any
rocess< oeration or industry.
iii. Any other infor$ation or docu$ent which is necessary in the oinion of the
Board for their fina' disosa' of the a'ication.
:2; Notice o8 P/7lics DearingC 3:i; 1he State Po''ution 7ontro' Board sha'' cause a notice for
environ$enta' ub'ic hearin& which sha'' be ub'ished in at 'east two newsaers wide'y
circu'ated in the re&ion around the ro>ect< one of which sha'' be in the vernacu'ar 'an&ua&e of
the 'oca'ity concerned. State Po''ution 7ontro' Board sha'' $ention the date< ti$e and 'ace of
ub'ic hearin&. Su&&estions< views< co$$ents and ob>ections of the ub'ic sha'' be invited
within thirty days fro$ the date of ub'ication of the notification.
:ii; A'' ersons inc'udin& bona fide residents< environ$enta' &rous and others 'ocated at
the ro>ect site(sites of dis'ace$ent(sites 'i4e'y to be affected can articiate in the
ub'ic hearin&. 1hey can a'so $a4e ora'(written su&&estions to the State Po''ution
7ontro' Board.
E>planation6 3 8or the urose of the ara&rah erson $eansC !
a. any erson who is 'i4e'y to be affected by the &rant of environ$enta'
c'earanceJ
b. any erson who owns or has contro' over the ro>ect with resect to
which an a'ication has been sub$itted for environ$enta' c'earanceJ
c. any association of ersons whether incororated or not 'i4e to be
affected by the ro>ect and(or functionin& in the fi'ed of environ$entJ
d. any 'oca' authority within any art of whose 'oca' 'i$its is within the
nei&hbourhood wherein the ro>ect is roosed to be 'ocated.
:3; Composition o8 p/7lic 5earing panel6 3 1he co$osition of Pub'ic Gearin& Pane' $ay
consist of the fo''owin&< na$e'yC !
:i; #eresentative of State Po''ution 7ontro' BoardJ
:ii; 2istrict 7o''ector or his no$ineeJ
:iii; #eresentative of State -overn$ent dea'in& with the sub>ectJ
:iii; #eresentative of 2eart$ent of the State -overn$ent dea'in& with
+nviron$entJ
:iv; Not $ore than three reresentatives of the 'oca' bodies such as
Municia'ities or anchayatsJ
:v; Not $ore than three senior citiEens of the area no$inated by the
2istrict 7o''ector.
:4; Access to t5e E>ec/tive S/mmary and Environmental Impact Assessment report63
1he concerned ersons sha'' be rovided access to the +Aecutive Su$$ary and
+nviron$enta' I$act Assess$ent reort of the ro>ect at the fo''owin& 'aces< na$e'yC!
:i; 2istrict 7o''ector 9fficeJ
:ii; 2istrict Industry 7entreJ
:ii; In the 9ffice of the 7hief +Aecutive 9fficers of @i'a Praishad or 7o$$issioner of
the Municia' 7ororation(0oca' body as the case $ay beJ
:iii; In the head office of the concerned State Po''ution 7ontro' Board and its
concerned #e&iona' 9fficeJ
:iv;In the concerned 2eart$ent of the State -overn$ent dea'in& with the sub>ect of
environ$ent.
5. 1i$e eriod for co$'etion of ub'ic hearin&C
1he ub'ic hearin& sha'' be co$'eted within a eriod of ". days fro$ the date of
receit of co$'ete docu$ents as re=uired under ara&rah 1.

Amendment in Environment Protection +/les; %AC' $%A#A#%AAE*

Copy o8 T5e 2aHette o8 India
EXT+A"+DINA+1
PA+T II 33 Section ) S/7 Section $I*
P,!ISDED 1 A,TD"+IT1
0INIST+1 "F EN.I+"N0ENT AND F"+ESTS
Ne: Del5i; t5e %A
TD
Septem7er ;%%AE
-S#. 5".:+; 6 In eAercise of the owers conferred by sections " and 25 of the +nviron$ent
:Protection; Act< 1,*" :2, of 1,*"; the 7entra' -overn$ent hereby $a4es the fo''owin& ru'es
further to a$end the +nviron$ent :Protection; #u'es na$e'yQ
1. :1 ; 1hese ru'es $ay be ca''ed the +nviron$ent :Protection; A$end$ent #u'es<
1,,).
: 2 ; 1hey sha'' co$e into force on the date of their ub'ication in the 9fficia'
-aEette.
2. In the +nviron$ent :Protection; #u'es< 1,*"< after sub!ru'e :); of
ru'e3<thefo''owin& sub!ru'e sha'' be inserted na$e'yC!
: *; 9n and fro$ the 1
st
Fune< 2..1< the fo''owin& coa' based ther$a' ower
'ants sha'' Juse beneficiated coa' with an ash content not eAceedin& thirty!
four er cent< na$e'yC!
: a ; any ther$a' ower 'ant 'ocated beyond one thousand 4i'o$eters fro$
the it!head and
: b; ; any ther$a' ower 'ant 'ocated in urban area or sensitive area or critica''y
o''uted area irresective of their distance fro$ it!head ower 'ant.
+A'anationC! 8or the urose this ru'eC!!
:a ; Kbeneficiated coa'D $eans coa' containin& hi&her ca'orific va'ue but 'ower ash than the
ori&ina' ash content in the raw coa' obtained throu&h hysica' searation or washin& rocessJ
:b; Kit!head ower 'ant K $eans ower stations havin& cative
transortation syste$ for its eAc'usive use for transortation of coa' fro$ the
'oadin& oint at the $inin& end uto Jthe un'oadin& oint at the ower station
without usin& the nor$a' ub'ic transortation syste$J
:c; Ksensitive areaD $eans an area whose eco'o&ica' ba'ance is rone to be
easi'y disturbedJ
Kcritica''y o''uted areaD $eans the area where o''ution 'eve' has reached
or 'i4e'y to reach to the critica' 'eve's which has been identified as such
by the 7entra' -overn$ent or 7entra' Po''ution 7ontro' Board or a State
Po''ution 7ontro' Board.
:8.No. @.1".11(1(,4!7P3;
/IFAI SGA#MA
F9IN1 S+7#+1A#L
8991 N91+C Princia' ru'es were ub'ished in the -aEette of India vide S.9.
*44:+; dated the 1,
th
Nove$ber< 1,*" and subse=uent'y a$ended videC!
:1; S... No. 433:+; dated 1*.4.1,*)
:2; S... No. "4:+; dated 1*.1.1,**
:3; S... No.12:+; dated *.1.1,,.
:4; S... No. 3:+; dated 3.1.1,*,
:5; S... No. 1,.:+; dated 15.3.1,*,
:"; S... No. ,13:+; dated 24.1..1,*,
:); S... No. )42:+; dated 3..*.1,,.
:*; S... No.23:+; dated 1".1.1,,1
:,; S... No. ,13:+; dated 21.2.1,,1
:1.; S... No. ,5:+; dated 12.2.1,,2
:11; S... No. 32,:+; dated 13.3.1,,2
:12; S... No. 4)5:+; dated 5.5.1,,2
:13; S... No.),):+; dated 1.1..1,,2
:14; S... No. 3*":+; dated 2*.4.1,,3
:15; S... No. 422:+; dated 1,.5.1,,3
:1"; S... No.*.1:+; dated 31.12.1,,3
:1); S... No.35":+; dated 4.5.1,,4
:1*; S... No.5,5:+; dated 1**.1,,4
:1,; S... No. )3:+; dated 31.1.1,,)
:2.; S... No. 4,4:+; dated ,.). 1,,)
,se o8 ra:J 7lendedJ 7ene8iciated coal in TPSs $)#E#%AAC*
Copy o8 T5e 2aHette o8 India
EXT+A"+DINA+1
PA+T II 33 Section ) S/7 Section $i*
P,!ISDED 1 A,TD"+IT1
Ne: Del5i; Friday -/ly ); %AAC
0INIST+1 "F EN.I+"N0ENT AND F"+ESTS
N"TIFICATI"N
Ne: Del5i; t5e )&
TD
-/ne ;%AAC
-S#. 3)*:+; 6 In eAercise of the owers conferred by sections " and 25 of the +nviron$ent
:Protection; Act< 1,*" :2, of 1,*"; the 7entra' -overn$ent hereby $a4es the fo''owin& ru'es
further to a$end the +nviron$ent :Protection; #u'es< 1,*"< na$e'yC!
1. :1 ; 1hese #u'es $ay be ca''ed the +nviron$ent :Protection; A$end$ent
#u'es< 1,,*.
: 2 ; 1hey sha'' co$e into force on the date of their ub'ication in the 9fficia'
-aEette.
2. In the +nviron$ent :Protection; #u'es< 1,*"< in ru'e :3;< sub!ru'e:*;< !
i. for the words P beneficiated coa' with an ash content not eAceedin&
thirty!four er centQ< the words Praw or b'ended or beneficiated coa'
with an ash content not eAceedin& thirty!four er cent on an annua'
avera&e basisQ sha'' be substitutedJ
ii. after c'ause :b;< the fo''owin& roviso sha'' be inserted< na$e'yC!
PProvided that any ther$a' ower 'ant usin& 8'uidiEed Bed
7o$bustion or circu'atin& 8'uidiEed Bed 7o$bustion or At$osheric
8'uidiEed Bed 7o$bustion or Pressurised 8'uidiEed Bed 7o$bustion or
Inte&rated -asification 7o$bined 7yc'e 1echno'o&ies or any other
c'ean techno'o&ies as $ay be notified by the 7entra' -overn$ent in the
9fficia' -aEette sha'' be eAe$ted fro$ c'auses :a; and :b;QJ
iii. after eA'anation :d;< the fo''owin& eA'anation sha'' be inserted
na$e'yC!
P:e; K?rban areaD $eans an area 'i$it of a city havin& ou'ation of
$ore than 1 $i''ion accordin& to 1,,1 census.Q
:8.No. @.1".11(1(,4!7P3;
/IFAI SGA#MA
F9IN1 S+7#+1A#L
8991 N91+C Princia' ru'es were ub'ished in the -aEette of India vide S.9.
*44:+; dated the 1,
th
Nove$ber< 1,*" and subse=uent'y a$ended videC!
:1; S... No. 433:+; dated 1*.4.1,*)
:2; S... No. "4:+; dated 1*.1.1,**
:3; S... No. *:+; dated .3.1.1,*,
:4; S... No. 1,.:+; dated 15.3.1,*,
:5; -.S.#. No. ,13:+; dated 24.1..1,*,
:"; S... No.12:+; dated *.1.1,,.
:); -.S.#. No. )42:+; dated 3...*.1,,.
:*; S... No.23:+; dated 1".1.1,,1
:,; -.S.# No. ,13 :+; dated 21..2.1,,1
:1.; -.S.# No. ,5 :+; dated 12..2.1,,2
:11; -.S.# No. 32, :+; dated 13..3.1,,2
:12; -.S.# No. 4)5 :+; dated 5..5.1,,2
:13; -.S.# No. ),) :+; dated 1.1..1,,2
:14; -.S.# No. 3*" :+; dated 2*..4.1,,3
:15; -.S.# No. 422 :+; dated 1,..5.1,,3
:1"; -.S.# No. *.1 :+; dated 31.12.1,,3
:1); S... No.35" :+; dated 4.5.1,,4
:1*; S... No.5,5 :+; dated 1*.*.1,,4
:1,; S... No.)3 :+; dated 31.1.1,,)
:2.; S... No.4,4 :+; dated ,.).1,,)
:21; -.S.#. No.5". :+; dated 1,.,.1,,)
MINIS1#L 98 +N/I#9NM+N1 % 89#+S1S
:2eart$ent of +nviron$ent< 8orests and 3i'd'ife;
N91I8I7A1I9N ?N2+# S+71I9N 3:1; AN2 S+71I9N 3:2;:v; 98 1G+
+N/I#9NM+N1 :P#91+71I9N; A71< 1,*" AN2 #?0+ 5:3;:d; 98 1G+
+N/I#9NM+N1 :P#91+71I9N; #?0+S< 1,*" 2+70A#IN- 79AS1A0
S1#+17G+S AS 79AS1A0 #+-?0A1I9N @9N+ :7#@; AN2
#+-?0A1IN- A71I/I1I+S IN 1G+ 7#@.
New 2e'hi< the 1,
th
8ebruary< 1,,1
:as a$ended u to 3
rd
9ctober 2..1;
S.9.114 :+;. ! 3hereas a Notification under Section 3:1; and Section
3:2;:v; of the +nviron$ent :Protection; Act< 1,*"< invitin& ob>ections a&ainst
the dec'aration of 7oasta' Stretches as 7oasta' #e&u'ation @one :7#@; and
i$osin& restrictions on industries< oerations and rocesses in the 7#@ was
ub'ished vide S.9. No.,44 :+; dated 15
th
2ece$ber< 1,,..
And whereas a'' ob>ections received have been du'y considered by the
7entra' -overn$entJ
Now< therefore< in eAercise of the owers conferred by 7'ause :d; of
sub!ru'e :3; of #u'e 5 of the +nviron$ent :Protection; #u'es< 1,*"< and a''
other owers vestin& in its beha'f< the 7entra' -overn$ent hereby dec'ares the
coasta' stretches of seas< bays< estuaries< cree4s< rivers and bac4waters which
are inf'uenced by tida' action :in the 'andward side; uto 5.. $etres fro$ the
Gi&h 1ide 0ine :G10; and the 'and between the 0ow 1ide 0ine :010; and the
G10 as 7oasta' #e&u'ation @oneJ and i$oses with effect fro$ the date of this
Notification< the fo''owin& restrictions on the settin& u and eAansion of
industries< oerations or rocesses< etc. in the said 7oasta' #e&u'ation @one
:7#@;. 8or t5e uroses of this notification< the Gi&h 1ide 0ine means t5e
line on t5e land /pto :5ic5 t5e 5ig5est :ater line reac5es d/ring t5e
spring tide# T5e Dig5 Tide !ine s5all 7e demarcated /ni8ormly in all parts
o8 t5e co/ntry 7y t5e demarcating a/t5ority or a/t5orities so a/t5orised
7y t5e Central 2overnment; in accordance :it5 t5e general g/idelines
iss/ed in t5is regard#
%;'#

NoteC !1he distance fro$ the Gi&h 1ide 0ine s5all
%
a'y to 7ot5 sides
%
in the case of rivers< cree4s and bac4 waters and $ay be $odified on a case by
case basis for reasons to be recorded whi'e rearin& the 7oasta' @one
Mana&e$ent P'ans.Gowever< this distance sha'' not be 'ess than *01 +12"is
3ro#ision "as /een struc4 down /y t"e u3re%e -ourt ; 1.. $etres or the
width of the cree4< river or bac4water whichever is 'ess.
T5e distance /pto :5ic5 development along rivers; cree9s and 7ac93
:aters is to 7e reg/lated s5all 7e governed 7y t5e distance /pto :5ic5 t5e
tidal e88ect o8 sea is e>perienced in rivers; cree9s or 7ac93:aters; as t5e
case may 7e; and s5o/ld 7e clearly identi8ied in t5e Coastal Pone
0anagement Plans#
%

2. 2.Prohibited ActivitiesC
1he fo''owin& activities are dec'ared as rohibited within the 7oasta'
#e&u'ation @one< na$e'yC
:i; :i;settin& u ofnew industries and eAansion of eAistin& industries< eAcet $a*
%&
those direct'y re'ated to water front or direct'y needin& foreshore faci'ities and
$7* Pro=ects o8 Department o8 Atomic EnergyJ
%&

:ii; :ii;$anufacture or hand'in& or stora&e or disosa' of
haEardous substances as secified in the Notifications of
the -overn$ent of India in the Ministry of +nviron$ent
and 8orests No. S.9. 5,4:+; dated 2*
th
Fu'y 1,*,< S.9.
,"":+; dated 2)
th
Nove$ber< 1,*, and -S# 1.3):+;
dated 5
th
2ece$ber< 1,*,J e>cept trans8er o8 5aHardo/s
s/7stances 8rom s5ips to ports; terminals and
re8ineries and vice versa in t5e port areas6
)


Provided t5at;8acilities 8or receipt and storage o8 petrole/m
prod/cts and !i@/e8ied Nat/ral 2as as speci8ied in Anne>/re3III
appended to t5is noti8ication and 8acilities 8or regasi8ication o8
!i@/e8ied Nat/ral 2as; may 7e permitted :it5in t5e said Pone in
areas not classi8ied as C+P3I $i*; s/7=ect to implementation o8 sa8ety
reg/lations incl/ding g/idelines iss/ed 7y t5e "il Ind/stry Sa8ety
Directorate in t5e 2overnment o8 India; 0inistry o8 Petrole/m and
Nat/ral 2as and g/idelines iss/ed 7y t5e 0inistry o8 Environment
and Forests and s/7=ect to s/c5 8/rt5er terms and conditions 8or
implementation o8 ameliorative and restorative meas/res in
relation to t5e environment as may 7e stip/lated 7y t5e
2overnment o8 India in t5e 0inistry o8 Environment and Forests
:iii; Settin& u and eAansion of fish rocessin& units
inc'udin& warehousin& :eAc'udin& hatchery and natura'
fish dryin& in er$itted areas;J
Provided t5at e>isting 8is5 processing /nits 8or
modernisation p/rposes may /tilise t:enty 8ive per cent additional
plint5 area re@/ired 8or additional e@/ipment and poll/tion control
meas/res only s/7=ect to e>isting Floor Space inde>J Floor Area
+atio norms and s/7=ect to t5e condition t5at t5e additional plint5
area s5all not 7e to:ards sea:ard side o8 e>isting /nit and also
s/7=ect to t5e approval o8 State Poll/tion Control oard or
Poll/tion Control Committee#
:iv; :iv;settin& u and eAansion of units($echanis$ for
disosa' of waste and eff'uents< eAcet faci'ities re=uired
for dischar&in& treated eff'uents into the water course
with arova' under the 3ater :Prevention and 7ontro'
of Po''ution; Act< 1,)4J and eAcet for stor$ water
drainsJ
:v; :v;dischar&e of untreated wastes and eff'uents fro$
industries< cities or towns and other hu$an
sett'e$ents.Sche$es sha'' be i$'e$ented by the
concerned authorities for hasin& out the eAistin&
ractices< if any< within a reasonab'e ti$e eriod not
eAceedin& three years fro$ the date of this notificationJ
:vi; du$in& of city or town waste for the uroses of
'andfi''in& or otherwiseJ the eAistin& ractice< if any<
sha'' be hased out within a reasonab'e ti$e not
eAceedin& three years fro$ the date of this NotificationJ
:vii; :vii;du$in& of ash or any wastes fro$ ther$a' ower
stationsJ
:viii; :viii;0and rec'a$ation< bundin& or disturbin& the natura'
course of sea water eAcet those re=uired
for construction or modernisation or e>pansion of
orts< harbours< >etties< wharves< =uays< s'iways<
brid&es and sea!'in4s and for other faci'ities that are
essentia' for activities er$issib'e under the notification
or for contro' of coasta' erosion and $aintenance or
c'earin& of water ways< channe's and orts or for
revention of sandbars or for tida' re&u'ators< stor$
water drains or for structures for revention of sa'inity
in&ress and sweet water rechar&eC
provided t5at reclamation 8or commercial p/rposes
s/c5 as s5opping and 5o/sing comple>es; 5otels and
entertainment activities s5all not 7e permissi7leQ
:iA; $i>*Minin& of sands< roc4s and other substrata $ateria's<
eAcet $a* those rare $inera's not avai'ab'e outside the
7#@ areas and $7* e>ploration and e>traction o8 "il
and Nat/ral 2as
Provided t5at in t5e ,nion Territory o8 t5e Andaman and
Nico7ar islands; mining o8 sands may 7e permitted 7y t5e
Committee :5ic5 s5all 7e constit/ted 7y t5e !ie/tenant
2overnor o8 t5e Andaman and Nico7ar Islands consisting o8
C5ie8 SecretaryQ Secretary; Department o8 EnvironmentQ
Secretary; Department o8 Water +eso/rcesQ and Secretary;
P/7lic Wor9s Department# T5e said Committee may permit
mining o8 sand 8rom non3degraded areas 8or constr/ction
p/rposes 8rom selected sites; in a reg/lated manner on a case
to case 7asis; 8or a period /pto t5e )&
t5
day o8 Septem7er;
(&&(#T5e @/antity o8 sand mined s5all not e>ceed t5e
essential re@/irements 8or completion o8 constr/ction :or9s
incl/ding d:elling /nits; s5ops in respect o8 5al8 yearly
re@/irements o8 (&&%3(&&( and (&&(3(&&) ann/al plans#T5e
permission 8or mining o8 sand may 7e given on t5e 7asis o8 a
mining plan 8rom s/c5 sites and in s/c5 @/antity :5ic5 s5all
not 5ave adverse impacts on t5e environment#
:A; :A;harvestin& or drawa' of &round water and construction
of $echanis$s therefor within 2.. $ of G10J in the
2..$ to 5..$ Eone it sha'' be er$itted on'y when done
$anua''y throu&h ordinary we''s for drin4in&<
horticu'ture< a&ricu'ture and fisheriesJ
Provided t5at dra:al o8 gro/nd :ater is permitted; :5ere
no ot5er so/rce o8 :ater is availa7le and :5en done
man/ally t5ro/g5 ordinary :ells or 5and p/mps; 8or
drin9ing and domestic p/rposes; in t5e Hone 7et:een B& to
(&& m 8rom Dig5 Tide !ine in case o8 seas; 7ays and
est/aries and :it5in (&& m or t5e C+P; :5ic5ever is less;
8rom Dig5 Tide !ine in case o8 rivers; cree9s and
7ac9:aters s/7=ect to s/c5 restrictions as may 7e deemed
necessary; in areas a88ected 7y sea :ater intr/sion; t5at may
7e imposed 7y an a/t5ority designated 7y State
2overnmentJ,nion Territory Administration#
:Ai; :Ai;construction activities in 7#@ !I eAcet as secified
in AnneAure !I of this notificationJ
:Aii; :Aii;any construction activity between the 0ow 1ide 0ine
and Gi&h 1ide 0ine eAcet faci'ities for carryin& treated
eff'uents and waste water dischar&es into the sea<
faci'ities for carryin& sea water for coo'in& uroses< oi'<
&as and si$i'ar ie'ines and faci'ities essentia' for
activities er$itted under this NotificationJ and
:Aiii; :Aiii;dressin& or a'terin& of sand dunes< hi''s< natura'
features inc'udin& 'andscae chan&es for beautification<
recreationa' and other such urose< eAcet as
er$issib'e under this Notification.
3. 3.#e&u'ation of Per$issib'e ActivitiesC
A'' other activities< eAcet those rohibited in ara 2 above< wi'' be
re&u'ated as underC
:1; :1;7'earance sha'' be &iven for any activity within the
7oasta' #e&u'ation @one on'y if it re=uires water front
and foreshore faci'ities.
:2; :2;1he fo''owin& activities wi'' re=uire environ$enta'
c'earance fro$ the Ministry of +nviron$ent and 8orests<
-overn$ent of India< na$e'yC
:i; :i;7onstruction activities re'ated to pro=ects o8
Department o8 Atomic Energy or 2efence
re=uire$ents for which foreshore faci'ities are
essentia' such as. s'iways< >etties< wharves<
=uaysJ eAcet for c'assified oerationa'
co$onent of defence ro>ects for which a
searate rocedure sha'' be fo''owed.:#esidentia'
bui'din&s< office bui'din&s< hosita' co$'eAes<
wor4shos sha'' not co$e within the definition of
oerationa' re=uire$ents eAcet in very secia'
cases and hence sha'' not nor$a''y be er$itted
in the 7#@J
:ii; $ii*9erationa' constructions for orts and
harbours and 'i&ht houses and constructions for
activities such as >etties< wharves< =uays and
s'iways< pipelines; conveying systems
incl/ding transmission linesQ
$ii* a E>ploration and e>traction o8 oil and nat/ral
gas and all associated activities and 8acilities
t5eretoQ
:iii; :iii;1her$a' Power P'ants :on'y foreshore
faci'ities for transort of raw $ateria's faci'ities
for inta4e of coo'in& water and outfa'' for
dischar&e of treated waste water(coo'in& water;J
and
:iv; $iv*A'' other activities with invest$ent eAceedin&
ruees five crores e>cept t5ose activities :5ic5
are to 7e reg/lated 7y t5e concerned
a/t5orities at t5e StateJ,nion Territory level
in accordance :it5 t5e provisions o8
paragrap5 '; s/73paragrap5 $(* o8 Anne>/re %
o8 t5e noti8ication#
:3; :i; 1he 7oasta' States and ?nion 1erritory Ad$inistrations
sha'' reare< within a eriod of one year fro$ the date
of this Notification< 7oasta' @one Mana&e$ent P'ans
identifyin& and c'assifyin& the 7#@ areas within their
resective territories in accordance with the &uide'ines
&iven in AnneAures I and II of the Notification and
obtain arova' :with or without $odifications; of the
7entra' -overn$ent in the Ministry of +nviron$ent %
8orestsJ
:ii; 3ithin the fra$ewor4 of such aroved 'ans< a''
deve'o$ent and activities within the 7#@ other than
those covered in ara 2 and ara 3:2; above sha'' be
re&u'ated by the State -overn$ent< ?nion 1erritory
Ad$inistration or the 'oca' authority as the case $ay be
in accordance with the &uide'ines &iven in AnneAure!I
and II of the NotificationJ and
:iii; :iii;In the interi$ eriod ti'' the 7oasta' @one
$ana&e$ent P'ans $entioned in ara 3:3; :i; above are
reared and aroved< a'' deve'o$ents and activities
within the 7#@ sha'' not vio'ate the rovisions of this
Notification.State -overn$ents and ?nion 1erritory
Ad$inistrations sha'' ensure adherence to these
re&u'ations and vio'ations< if any< sha'' be sub>ect to the
rovisions of the +nviron$ent :Protection; Act< 1,*".
4. 4.Procedure for $onitorin& and enforce$entC
1he Ministry of +nviron$ent % 8orests and the -overn$ent of State or
?nion 1erritory and such other authorities at the State or ?nion
1erritory 'eve's< as $ay be desi&nated for this urose< sha'' be
resonsib'e for $onitorin& and enforce$ent of the rovisions of this
notification within their resective >urisdictions.
ANN+5?#+ ! I
79AS1A0 A#+A 70ASSI8I7A1I9N AN2 2+/+09PM+N1
#+-?0A1I9NS
7'assification of 7oasta' #e&u'ation @oneC
":1; 8or re&u'atin& deve'o$ent activities< the coasta' stretches
within 5.. $etres of Gi&h 1ide 0ine on the 'andward side are c'assified into
four cate&ories< na$e'yC
7ate&ory I :7#@!I;C
:i; Areas that are eco'o&ica''y sensitive and i$ortant< such as
nationa' ar4s($arine ar4s< sanctuaries< reserve forests<
wi'd'ife habitats< $an&roves< cora's(cora' reefs< areas c'ose to
breedin& and sawnin& &rounds of fish and other $arine 'ife<
areas of outstandin& natura' beauty(historica''y(herita&e areas<
areas rich in &enetic diversity< areas 'i4e'y to be inundated due
to rise in sea 'eve' conse=uent uon &'oba' war$in& and such
other areas as $ay be dec'ared by the 7entra' -overn$ent or
the concerned authorities at the State(?nion 1erritory 'eve' fro$
ti$e to ti$e.
:ii; :ii;Area between 0ow 1ide 0ine and the hi&h 1ide 0ine.
7ate&ory!II :7#@!II;C
1he areas that have a'ready been deve'oed uto or c'ose to the
shore'ine.8or this urose< Pdeve'oed areaQ is referred to as that area within
the $unicia' 'i$its or in other 'e&a''y desi&nated urban areas which is a'ready
substantia''y bui't u and which has been rovided with draina&e and aroach
roads and other infrastructura' faci'ities< such as water su'y and sewera&e
$ains.
7ate&ory!III :7#@!III;C
Areas that are re'ative'y undisturbed and those which do not be'on& to
either 7ate&ory!I or II. 1hese wi'' inc'ude coasta' Eone in the rura' areas
:deve'oed and undeve'oed; and a'so areas within Municia' 'i$its or in other
'e&a''y desi&nated urban areas which are not substantia''y bui't u.
7ate&ory!I/ :7#@!I/;C
7oasta' stretches in the Anda$an % Nicobar< 0a4shadwee and s$a''
is'ands< eAcet those desi&nated as 7#@!I< 7#@!II or 7#@!III.
Nor$s for #e&u'ation of Activities.
":2; 1he deve'o$ent or construction activities in different
cate&ories of 7#@ area sha'' be re&u'ated by the concerned authorities at the
State(?nion 1erritory 'eve'< in accordance with the fo''owin& nor$sC
7#@!I
No ne: constr/ction s5all 7e permitted in C+P3 I e>cept $a*
Pro=ects relating to Department o8 Atomic Energy and $7* Pipelines;
conveying systems incl/ding transmission lines and $c* 8acilities t5at are
essential 8or activities permissi7le /nder C+P3I#et:een t5e !T! and t5e
DT!; activities as speci8ied /nder paragrap5 ( $>ii* may 7e permitted# In
addition; 7et:een !T! and DT! in areas :5ic5 are not ecologically
sensitive and important; t5e 8ollo:ing may 7e permitted6 $a* E>ploration
and e>traction o8 "il and Nat/ral 2as; $7* activities as speci8ied /nder
proviso o8 s/73paragrap5 $ii* o8 paragrap5 (; and $c* Constr/ction o8
dispensaries; sc5ools; p/7lic rain s5elters; comm/nity toilets; 7ridges;
roads; =etties; :ater s/pply; drainage; se:erage :5ic5 are re@/ired 8or
traditional in5a7itants o8 t5e S/nder7ans io3sp5ere reserve area; West
engal; on a case to case 7asis; 7y t5e West engal State Coastal Pone
0anagement A/t5ority
7#@!II
:i; $i*Bui'din&s sha'' be er$itted only on t5e land:ard side o8
t5e e>isting road $or roads approved in t5e Coastal Pone
0anagement Plan o8 t5e area* or on t5e land:ard side o8
e>isting a/t5orised str/ct/res#Bui'din&s er$itted on the
'andward side of the eAistin& and roosed roads(eAistin&
authorised structures sha'' be sub>ect to the eAistin& 'oca' 1own
and 7ountry P'annin& #e&u'ations inc'udin& the eAistin& nor$s
of Floor Space Inde>JFloor Area +atio6
Provided t5at no permission 8or constr/ction o8 7/ildings
s5all 7e given on land:ard side o8 any ne: roads $e>cept
roads approved in t5e Coastal Pone 0anagement Plan*
:5ic5 are constr/cted on t5e sea:ard side o8 an e>isting
road#
:ii; :ii;#econstruction of the authorised bui'din&s to be er$itted
sub>ect to the eAistin& 8SI(8A# nor$s and without chan&e in
the eAistin& use.
:iii; :iii;1he desi&n and construction of bui'din&s sha'' be consistent
with the surroundin& 'andscae and 'oca' architectura' sty'e.
7#@!III
:i; :i;1he area uto 2.. $etres fro$ the Gi&h 1ide 0ine is to be
ear$ar4ed as KNo 2eve'o$ent @oneD.No construction sha'' be
er$itted within this Eone eAcet for reairs of eAistin&
authorised structures not eAceedin& eAistin& 8SI< eAistin& 'inth
area and eAistin& density< and 8or permissi7le activities /nder
t5e noti8ication incl/ding 8acilities essential 8or s/c5
activities# An a/t5ority designated 7y t5e State
2overnmentJ,nion Territory Administration may permit
constr/ction o8 8acilities 8or :ater s/pply; drainage and
se:erage 8or re@/irements o8 local in5a7itants#Gowever< the
fo''owin& uses $ay be er$issib'e in this Eone 6 a&ricu'ture<
horticu'ture< &ardens< astures< ar4s< 'ay fie'ds< forestry and
sa't $anufacture fro$ sea water.
:ii; :ii;2eve'o$ent of vacant 'ots between 2.. and 5.. $etres of
Gi&h 1ide 0ine in desi&nated areas of 7#@!III with rior
arova' of Ministry of +nviron$ent and 8orests :M+8;
er$itted for construction of hote's(beach resorts for te$orary
occuation of tourists(visitors sub>ect to the conditions as
stiu'ated in the &uide'ines at AnneAure!II.
:iii; :iii;7onstruction(reconstruction of dwe''in& units between 2..
and 5.. $etres of the Gi&h 1ide0ine er$itted so 'on& it is
within the a$bit of traditiona' ri&hts and custo$ary uses such as
eAistin& fishin& vi''a&es and &aothans. Bui'din& er$ission for
such construction(reconstruction wi'' be sub>ect to the
conditions that the tota' nu$ber of dwe''in& units sha'' not be
$ore than twice the nu$ber of eAistin& unitsJ tota' covered area
on a'' f'oors sha'' not eAceed 33 ercent of the 'ot siEeJ the
overa'' hei&ht of construction sha'' not eAceed , $etres and
construction sha'' not be $ore than 2 f'oors &round f'oor 'us
one f'oor. Constr/ction is allo:ed 8or permissi7le activities
/nder t5e noti8ication incl/ding 8acilities essential 8or s/c5
activities#An a/t5ority designated 7y State
2overnmentJ,nion Territory Administration may permit
constr/ction o8 p/7lic rain s5elters; comm/nity toilets;
:ater s/pply; drainage; se:erage; roads and 7ridges#T5e
said a/t5ority may also permit constr/ction o8 sc5ools and
dispensaries; 8or local in5a7itants o8 t5e area; 8or t5ose
panc5ayats t5e ma=or part o8 :5ic5 8alls :it5in C+P i8 no
ot5er area is availa7le 8or constr/ction o8 s/c5 8acilities#
:iv; :iv;#econstruction(a'terations of an eAistin& authorised bui'din&
er$itted sub>ect to :i; to :iii; above.
7#@!I/
Anda$an % Nicobar Is'andsC
:i; :i;No new construction of bui'din&s sha'' be er$itted
within 2.. $etres of the G10J
:ii; :ii;1he bui'din&s between 2.. and 5.. $etres fro$ the
Gi&h 1ide 0ine sha'' not have $ore than 2 f'oors
:&round f'oor and first f'oor;<the tota' covered area on a''
f'oors sha'' not be $ore than 5. er cent of the 'ot siEe
and the tota' hei&ht of construction sha'' not eAceed ,
$etresJ
:iii; :iii;1he desi&n and construction of bui'din&s sha'' be
consistent with the surroundin& 'andscae and 'oca'
architectura' sty'e.
:iv; $a* Corals 8rom t5e 7eac5es and coastal :aters s5all not
7e /sed 8or constr/ction and ot5er p/rposes#
$7* sand may 7e /sed 8rom t5e 7eac5es and coastal
:aters; only 8or constr/ction p/rpose /pto t5e )&
t5
day o8 Septem7er (&&( and t5erea8ter it s5all not 7e
/sed 8or constr/ction and ot5er p/rposes#
:ii; :iv;2red&in& and underwater b'astin& in and around cora'
for$ations sha'' not be er$ittedJ and
:iii; :v;Gowever< in so$e of the is'ands< coasta' stretches $ay a'so
be c'assified into cate&ories 7#@!I or II or III with the rior
arova' of Ministry of +nviron$ent and 8orests and in such
desi&nated stretches< the aroriate re&u'ations &iven for
resective 7ate&ories sha'' a'y.
0a4shadwee and s$a'' Is'andsC
:i; :i;8or er$ittin& construction of bui'din&s< the distance
fro$ the Gi&h 1ide 0ine sha'' be decided deendin& on
the siEe of the is'ands.1his sha'' be 'aid down for each
is'and< in consu'tation with the eAerts and with arova'
of the Ministry of +nviron$ent % 8orests< 4eein& in
view the 'and use re=uire$ents for secific uroses vis!
[!vis 'oca' conditions inc'udin& hydro'o&ica' asects
erosion and eco'o&ica' sensitivityJ
:ii; :ii;1he bui'din&s within 5.. $etres fro$ the G10 sha''
not have $ore than 2 f'oors :&round f'oor and 1
st
f'oor;<
the tota' covered area on a'' f'oors sha'' not be $ore than
5. er cent of the 'ot siEe and the tota' hei&ht of
construction sha'' not eAceed , $etresJ
:iii; :iii;1he desi&n and construction of bui'din&s sha'' be
consistent with the surroundin& 'andscae and 'oca'
architectura' sty'eJ
:iv; :iv;7ora's and sand fro$ the beaches and coasta' waters
sha'' not be used for construction and other urosesJ
:v; :v;2red&in& and underwater b'astin& in and around cora'
for$ations sha'' not be er$ittedJ and
:vi; :vi;Gowever< in so$e of the is'ands< coasta' stretches
$ay a'so be c'assified into cate&ories 7#@!I or II or III<
with the rior arova' of Ministry of +nviron$ent %
8orests and in such desi&nated stretches< the aroriate
re&u'ations &iven for resective 7ate&ories sha'' a'y.
AnneAure 6 II
-?I2+0IN+S 89# 2+/+09PM+N1 98 B+A7G #+S9#1S(G91+0S IN
1G+ 2+SI-NA+2 A#+AS 98 7#@!III 89# 1+MP9#A#L 977?PA1I9N
98 19?#IS1(/ISI19#S< 3I1G P#I9# APP#9/A0 98 1G+ MINIS1#L
98 +N/I#9NM+N1 % 89#+S1S.
):1; 7onstruction of beach resorts(hote's with rior arova' of M+8
in the desi&nated areas of 7#@!III for te$orary occuation of
tourists(visitors sha'' be sub>ect to the fo''owin& conditionsC
:i; :i;1he ro>ect roonents sha'' not underta4e any
construction :inc'udin& te$orary constructions and
fencin& or such other barriers; within 2.. $etres :in the
'andward wide; fro$ the Gi&h 1ide 0ine and within the
area between the 0ow 1ide and Gi&h 1ide 0ineJ
$ia* live 8encing and 7ar7ed :ire 8encing :it5 vegetative
cover may 7e allo:ed aro/nd private properties
s/7=ect to t5e condition t5at s/c5 8encing s5all in no
:ay 5amper p/7lic access to t5e 7eac5Q
$i7* no 8lattening o8 sand d/nes s5all 7e carried o/tQ
$ic* no permanent str/ct/res 8or sports 8acilities s5all 7e
permitted e>cept constr/ction o8 goal posts; net posts
and lamp posts#
$id* constr/ction o8 7asements may 7e allo:ed s/7=ect to
t5e condition t5at no o7=ection certi8icate is o7tained
8rom t5e State 2ro/nd Water A/t5ority to t5e e88ect
t5at s/c5 constr/ction :ill not adversely a88ect 8ree
8lo: o8 gro/nd :ater in t5at area#T5e State 2ro/nd
Water A/t5ority s5all ta9e into consideration t5e
g/idelines iss/ed 7y t5e Central 2overnment 7e8ore
granting s/c5 no o7=ection certi8icate#
E>planation6
T5o/g5 no constr/ction is allo:ed in t5e no development Hone 8or t5e
p/rposes o8 calc/lation o8 FSI; t5e area o8 entire plot incl/ding 5.B of t5e
portion :5ic5 8alls :it5in t5e no development Hone s5all 7e ta9en into
acco/nt#
:ii; :ii;1he tota' 'ot siEe sha'' not be 'ess than ..4 hectares
and the tota' covered area on a'' f'oors sha'' not eAceed
33 er cent of the 'ot siEe i.e. the 8SI sha'' not eAceed
..33.1he oen area sha'' be suitab'y 'andscaed with
aroriate ve&eta' coverJ
:iii; :iii;1he construction sha'' be consistent with the
surroundin& 'andscae and 'oca' architectura' sty'eJ
:iv; :iv;1he overa'' hei&ht of construction uto hi&hest rid&e
of the roof< sha'' not eAceed , $etres and the
construction sha'' not be $ore than 2 f'oors :&round
f'oor 'us one uer f'oor;J
:v; :v;-round water sha'' not be taed within 2..$ of the
G10J within the 2.. $etre 6 5.. $etre Eone< it can be
taed on'y with the concurrence of the 7entra'(State
-round 3ater BoardJ
:vi; :vi;+Atraction of sand< 'eve''in& or di&&in& of sandy
stretches eAcet for structura' foundation of bui'din&<
swi$$in& oo' sha'' not be er$itted within 5.. $etres
of the Gi&h 1ide 0ineJ
:vii; :vii;1he =ua'ity of treated eff'uents< so'id wastes<
e$issions and noise 'eve's< etc. fro$ the ro>ect area
$ust confor$ to the standards 'aid down by the
co$etent authorities inc'udin& the 7entra'(State
Po''ution 7ontro' Board and under the +nviron$ent
:Protection; Act< 1,*"J
:viii; :viii;Necessary arran&e$ents for the treat$ent of the
eff'uents and so'id wastes $ust be $ade.It $ust be
ensured that the untreated eff'uents and so'id wastes are
not dischar&ed into the water or on the beachJ and no
eff'uent(so'id waste sha'' be dischar&ed on the beachJ
:iA; :iA;1o a''ow ub'ic access to the beach< at 'east a &a of
2. $etres width sha'' be rovided between any two
hote's(beach resortsJ and in no case sha'' &as be 'ess
than 5.. $etres aartJ and
:A; :A;If the ro>ect invo'ves diversion of forest 'and for
non!forest uroses< c'earance as re=uired under the
8orest :7onservation; Act< 1,*. sha'' be obtained.1he
re=uire$ents of other 7entra' and State 'aws as
a'icab'e to the ro>ect sha'' be $et with.
:Ai; :Ai;Arova' of the State(?nion 1erritory 1ouris$
2eart$ent sha'' be obtained.
):2; In eco'o&ica''y sensitive areas :such as $arine ar4s<
$an&roves< cora' reefs< breedin& and sawnin& &rounds of fish< wi'd'ife
habitats and such other areas as $ay notified by the 7entra'(State
-overn$ent(?nion 1erritories; construction of beach resorts(hote's
sha'' not be er$itted.
Anne>/re 3 III
NSee paragrap5 (; s/73paragrap5 $ii*O
!ist o8 Petrole/m Prod/cts Permitted 8or Storage in Coastal +eg/lation
Pone e>cept C+P I3 $i*
:i; $i*Cr/de "ilQ
:ii; $ii*!i@/e8ied Petrole/m 2asQ
:iii; $iii*0otor SpiritQ
:iv; $iv*FeroseneQ
:v; $v*Aviation F/elQ
:vi; $vi*Dig5 Speed DieselQ
:vii; $vii*!/7ricating "ilQ
:viii; $viii*/taneQ
:iA; $i>*PropaneQ
:A; $>*Compressed Nat/ral 2asQ
:Ai; $>i*Nap5t5aQ
:Aii; $>ii*F/rnace "ilQ
:Aiii; $>iii*!o: S/lp5/r Deavy Stoc9#
:Aiv; $>iv*!i@/e8ied Nat/ral 2as $!N2*
+nviron$enta' c'earances accorded by the Ministry of Surface 1ransort fro$ ,
th
Fu'y
1,,) ti'' the ub'ication of this notification are va'id. A'' roosa's for environ$ent
c'earance endin& with the Ministry of Surface 1ransort stand transferred to Ministry
of +nviron$ent and forests fro$ the date of ub'ication of this notification.
1he rincia' notification was ub'ished in the -aEette of India vide nu$ber S.9. 114:+;<
dated< the 1,
th
8ebruary< 1,,1 :7orri&endu$ nu$ber S.9 1,.:+; dated 1*
th
March 1,,1; and
subse=uent'y a$ended videC !
:i; :i;S.9. 5,5 :+; dated 1*
th
Au&ust 1,,4:7orri&endu$ S.9.",. :+; dated 1,
th
Sete$ber 1,,4.;
:ii; :ii;S.9. )3 :+; dated 31
st
Fanuary 1,,).
:iii; :iii; S.9. 4,4 :+; dated ,
th
Fu'y 1,,).:7orri&endu$ S.9.)35:+; dated 21
st
9ctober 1,,).;
:iv; :iv;S.9. 334 :+; dated 2.
th
Ari' 1,,*.
:v; :v;S.9. *)3 :+; dated 3.
th
Sete$ber 1,,*.
:vi; :vi;S.9. 1122 :+; dated 2,
th
2ece$ber 1,,*.
:vii; :vii;S.9.,,* :+; dated 2,
th
Sete$ber 1,,,.
:viii; :viii;S.9.)3. :+; dated 4
th
Au&ust 2...
:iA; :iA;S.9. ,..:+; dated 2,th Sete$ber 2...
:A; :A;S.9. 32, :+; dated 12
th
Ari' 2..1:7orri&endu$ S.9. ))" :+; dated 13
th
Au&ust 2..1.;
:Ai; :Ai;S.9. ,** :+; dated 3
rd
9ctober 2..1.
2/idelines 8or determination o8 tari88 7y 7idding process 8or proc/rement o8 po:er 7y
distri7/tion licensees $%A#&%#(&&B*
1he -aEette of India
+51#A9#2INA#L
PA#1 I ! Section 1
P?B0ISG+2 BL A?1G9#I1L
Ministry of Power

New 2e'hi<
2ated the 1,
th
Fanuary< 2..5
RESOLUTION
No. 23(11(2..4!#%# :/o'.II;

Guidelines for eter!ination of Tari" #$ %idding &rocess for
&rocure!ent of &o'er #$ istri#ution Licensees

1 1! 9ream4le
Pro$otion of co$etition in the e'ectricity industry in India is one of the 4ey
ob>ectives of the +'ectricity Act< 2..3 :the Act;. Power urchase costs constitute the 'ar&est
cost e'e$ent for distribution 'icensees. 7o$etitive rocure$ent of e'ectricity by the
distribution 'icensees is eAected to reduce the overa'' cost of rocure$ent of ower and
faci'itate deve'o$ent of ower $ar4ets. Internationa''y< co$etition in who'esa'e e'ectricity
$ar4ets has 'ed to reduction in rices of e'ectricity and in si&nificant benefits for consu$ers.
Section "1 % "2 of the Act rovide for tariff re&u'ation and deter$ination of tariff of
&eneration< trans$ission< whee'in& and retai' sa'e of e'ectricity by the Aroriate
7o$$ission. Section "3 of the Act states that 6
PNotwithstandin& anythin& contained in section "2< the Aroriate
7o$$ission sha'' adot the tariff if such tariff has been deter$ined
throu&h transarent rocess of biddin& in accordance with the &uide'ines
issued by the 7entra' -overn$ent.Q
1hese &uide'ines have been fra$ed under the above rovisions of section "3 of the
Act. 1he secific ob>ectives of these &uide'ines are as fo''owsC
1 1. Pro$ote co$etitive rocure$ent of e'ectricity by distribution 'icenseesJ
2 2. 8aci'itate transarency and fairness in rocure$ent rocessesJ
3 3. 8aci'itate reduction of infor$ation asy$$etries for various biddersJ
4 4. Protect consu$er interests by faci'itatin& co$etitive conditions in rocure$ent of
e'ectricityJ
5 5. +nhance standardiEation and reduce a$bi&uity and hence ti$e for $ateria'iEation of
ro>ectsJ
" ". Provide f'eAibi'ity to su'iers on interna' oerations whi'e ensurin& certainty on
avai'abi'ity of ower and tariffs for buyers.
7 $! Scope o1 the @ui2elines
1 2.1. 1hese &uide'ines are bein& issued under the rovisions of Section "3 of the
+'ectricity Act< 2..3 for rocure$ent of e'ectricity by distribution 'icensees
:Procurer; forC
2 :a; 'on&!ter$ rocure$ent of e'ectricity for a eriod of ) years and aboveJ
3 :b; Mediu$ ter$ rocure$ent for a eriod of uto ) years but eAceedin& 1
year.
4 2.2. 1he &uide'ines sha'' a'y for rocure$ent of base!'oad< ea4!'oad and
seasona' ower re=uire$ents throu&h co$etitive biddin&< throu&h the
fo''owin& $echanis$sC
5 :i; 3here the 'ocation< techno'o&y< or fue' is not secified by the rocurer
"Case 1*J
" :ii; 8or hydro!ower ro>ects< 'oad center ro>ects or other 'ocation secific
ro>ects with secific fue' a''ocation such as cative $ines avai'ab'e< which the
rocurer intends to set u under tariff based biddin& rocess "Case $*.
) 2.3. ?n'ess eA'icit'y secified in these &uide'ines< the rovisions of these
&uide'ines sha'' be bindin& on the rocurer. 1he rocess to be adoted in event
of any deviation roosed fro$ these &uide'ines is secified 'ater in these
&uide'ines under ara 5.1".
* 2.4. Procure$ent by $ore than one distribution 'icensee throu&h a co$bined
bid rocess sha'' be er$itted. 8or such co$bined rocure$ent< each rocurer
sha'' rovide the necessary infor$ation re=uired as er these &uide'ines. 1o
ensure standardiEation in eva'uation of bids< the ay$ent security and other
co$$ercia' ter$s offered to the bidders by the various rocurers sha'' not vary.
1he rice offered by the bidders sha'' a'so be the sa$e for the distribution
'icensees invitin& the bid.
, 2.5. A'' ob'i&ations on art of the rocurers for the bid rocess sha'' be
considered to be $et on'y when each and every rocurer $eets such
ob'i&ations set out in the #e=uest for Proosa' :#8P;. 1his sha''< however< not
rec'ude the bidder fro$ waivin& such stiu'ation if the bidder finds it
reasonab'e to do so< and the sa$e sha'' not be construed to be vio'ation of these
&uide'ines.
(
' 3! 9reparation 1or in5iting 4i2s
1 3.1. 1o eAedite the bid rocess< the fo''owin& conditions sha'' be $et by the
rocurerC
2 :i; 1he bid docu$entation sha'' be reared in accordance with these
&uide'ines and the arova' of the aroriate #e&u'atory 7o$$ission sha'' be
obtained un'ess the bid docu$ents are as er the standard bid docu$ents issued
by the 7entra' -overn$ent. In such cases< an inti$ation sha'' be sent by the
rocurer to the aroriate #e&u'atory 7o$$ission about initiation of the
biddin& rocess.
3 :ii; Arova' of the Aroriate 7o$$ission sha'' be sou&ht in event of the
deviations fro$ the biddin& conditions contained in these &uide'ines< fo''owin&
the rocess described in ara 5.1" of these &uide'ines.
4 :iii; Arova' of the Aroriate 7o$$ission sha'' be sou&ht rior to initiatin&
the biddin& rocess in resect of the fo''owin& asectsC

1 :a; 8or the =uantu$ of caacity ( ener&y to be rocured< in case the sa$e is eAceedin& the
ro>ected additiona' de$and forecast for neAt three years :Both for Case 1 and Case $;.
2 :b; 8or the transfer rice of fue'< in case of fue' secific rocure$ent en=uiry< if such rice
has not been deter$ined by &overn$ent< &overn$ent aroved $echanis$ or a fue'
re&u'ator :under 7ase 2;.
. 3.2. 8or 'on&!ter$ rocure$ent fro$ hydro e'ectric ro>ects or for ro>ects for
which re!identified sites are to be uti'iEed :7ase 2;< the fo''owin& activities shou'd
be co$'eted by the rocurer< or authoriEed reresentative of the rocurer< before
co$$encin& the bid rocessC
1 M Site identification and 'and ac=uisition re=uired for the ro>ect
2 M +nviron$enta' c'earance
3 M 8ue' 'in4a&e< if re=uired :$ay a'so be as4ed fro$ bidder;
4 M 3ater 'in4a&e
5 M #e=uisite Gydro'o&ica'< &eo'o&ica'< $eteoro'o&ica' and seis$o'o&ica' data
necessary for rearation of 2etai'ed Pro>ect #eort :2P#;< where a'icab'e.
1he bidder sha'' be free to verify &eo'o&ica' data throu&h his own sources< as the
&eo'o&ica' ris4 wou'd 'ie with the ro>ect deve'oer.
1he ro>ect site sha'' be transferred to the successfu' bidder at a dec'ared rice.
1 3.3. It is reco$$ended that the rocurer shou'd obtain the trans$ission c'earances
necessary for receivin& ower at the de'ivery oints rior to invitin& bids. Gowever
this sha'' not be a bindin& condition for the bid rocess. ?n'ess otherwise secified in
the bid docu$ents< it sha'' be the resonsibi'ity of the se'ected bidder to obtain
trans$ission 'in4a&e for evacuation and inter!State trans$ission of ower :where
a'icab'e;.

1 %! #ari; Structure
. 4.1. 8or rocure$ent of e'ectricity under these &uide'ines< tariff sha'' be aid and
sett'ed for each ay$ent eriod :not eAceedin& one $onth;. A $u'ti!art tariff
structure featurin& searate caacity and ener&y co$onents of tariff sha''
ordinari'y for$ the basis for biddin&. Gowever< for $ediu$ ter$ rocure$ent the
rocurer $ay< at his otion< er$it bids on a sin&'e art basis< and the sa$e sha''
be c'ear'y secified in the #e=uest for Hua'ification :#8H; ( #e=uest for Proosa'
:#8P;.
1 4.2. In case of 'on& ter$ rocure$ent with secific fue' a''ocation :7ase 2;< the
rocurer sha'' invite bids on the basis of caacity char&e and net =uoted heat rate.
1he net heat rate sha'' be eA!bus ta4in& into account interna' ower consu$tion of
the ower station. 1he ener&y char&es sha'' be ayab'e as er the fo''owin&
for$u'a C
Energ$ )harges * Net +uoted heat rate , Scheduled
Generation , -onthl$ .eighted
/0erage &rice of 1uel 2 -onthl$ /0erage
Gross )alori3c 4alue of 1uel.

If the rice of the fue' has not been deter$ined by the -overn$ent of India<
&overn$ent aroved $echanis$ or the 8ue' #e&u'ator< the sa$e sha'' have to be
aroved by the aroriate #e&u'atory 7o$$ission.
In case of coa' ( 'i&nite fue'< the cost of secondary fue' oi' sha'' be factored in the
caacity char&es.

1 4.3. 1ariffs sha'' be desi&nated in Indian #uees on'y. 8orei&n eAchan&e ris4s< if any<
sha'' be borne by the su'ier. 1rans$ission char&es in a'' cases sha'' be borne by the
rocurer.
Capacity c5arges
1 4.4. 7aacity char&e sha'' be aid based on actua' avai'abi'ity in 4wh< as er char&es
=uoted in #s(4wh and sha'' be 'i$ited to the nor$ative avai'abi'ity :or nor$ative
caacity indeA for hydro e'ectric stations;. 1he nor$ative avai'abi'ity sha'' be a'i&ned to
the 'eve' secified in the tariff re&u'ations of the 7entra' +'ectricity #e&u'atory
7o$$ission :7+#7; revai'in& at the ti$e of the bid rocess< and sha'' be co$uted on
annua' basis. 1he caacity co$onent of tariffs $ay feature searate non!esca'ab'e
:fiAed; and esca'ab'e :indeAed; co$onents. 1he indices to be adoted for esca'ation of
the esca'ab'e co$onent sha'' on'y be 3ho'esa'e Price IndeA :3PI; or 7onsu$er Price
IndeA :7PI; and the Base year sha'' be secified in the bid docu$ent.
2 4.5. 7aacity char&es for su'y beyond the nor$ative avai'abi'ity sha'' be a re!
secified ercenta&e of the non!esca'ab'e co$onent of the caacity char&es< and sha''
be based on the avai'abi'ity of the 'ant beyond the nor$ative avai'abi'ity. 1he
ercenta&e a'icab'e sha'' be secified in the #8P< and sha'' be 'i$ited to a 4.B of the
non!esca'ab'e co$onent of the caacity char&es. 8or rocure$ent of 7ase!2 tye :in
reference to ara 2.2.;< the rocurer sha'' have first ri&ht of refusa' on ener&y &enerated
beyond nor$ative avai'abi'ity. In case actua' avai'abi'ity is 'ess than the nor$ative
avai'abi'ity< caacity char&es sha'' not be ayab'e for the shortfa'' co$ared to the
nor$ative avai'abi'ity. In such case a ena'ty at the rate of 2.B of the caacity char&e
sha'' be a'icab'e to the eAtent of the shortfa'' in avai'abi'ity.
3 4.". 1he se''er :successfu' bidder; sha'' dec'are avai'abi'ity on a dai'y basis in
accordance with the schedu'in& rocedure as stiu'ated in the Indian +'ectricity -rid
7ode :I+-7; fro$ ti$e to ti$e. 8urther the se''er and rocurer sha'' co$'y with a''
re'evant rovisions of the I+-7. If the rocurer does not avai' &eneration u to dec'ared
avai'abi'ity< the sa$e can be so'd in $ar4et by the se''er< and sa'e rea'iEation in eAcess of
variab'e char&es sha'' be e=ua''y shared with the rocurer.
4 4.). Any chan&e in taA on &eneration or sa'e of e'ectricity as a resu't of any chan&e in
0aw with resect to that a'icab'e on the date of bid sub$ission sha'' be ad>usted
searate'y.
5 4.*. #atio of $ini$u$ and $aAi$u$ caacity char&e for any year sha'' not be 'ess than
..) to avoid eAcessive front 'oadin& or bac4 'oadin& durin& the eriod of contract.
" 4.,. In case ea4'oad or seasona' re=uire$ents are distinct fro$ base'oad re=uire$ents<
the bidders sha'' indicate distinct rices for such ea4'oad or seasona' su'y which sha''
be eva'uated searate'y. 2ifferentia' rates =uoted for the sa$e source of ower for base
and ea4(seasona' 'oad sha'' not constitute vio'ation of &uide'ine or unfair ractice.
) 4.1.. Ade=uate ay$ent security sha'' be $ade avai'ab'e to the bidders. 1he ay$ent
security $ay constituteC
:i; 0etter of 7redit :07;
1 :ii; 0etter of 7redit :07; bac4ed by credib'e escrow $echanis$.
In the case the se''er does not rea'iEe fu'' ay$ent fro$ the rocurer by the due date as
er ay$ent cyc'e< the se''er $ay after ) days< ta4e recourse to ay$ent security
$echanis$ by encashin& the 07 to the eAtent of short fa'' or ta4e recourse to escrow
$echanis$. 1he rocurer sha'' restore the ay$ent security $echanis$ rior to the
neAt date of ay$ent. 8ai'ure to rea'iEe ay$ent even throu&h ay$ent security
$echanis$ sha'' constitute an event of ay$ent defau't. In the event of ay$ent
defau't the se''er< after &ivin& ) days notice< can se'' u to 25B of the contracted ower
to other arties without 'oosin& c'ai$ on the caacity char&es due fro$ the rocurer. If
the ay$ent security $echanis$ is not fu''y restored within 3. days of the event of the
ay$ent defau't< the se''er can se'' fu'' contracted ower to other arties without
'oosin& c'ai$ on the caacity char&es due fro$ the rocurer. 1he sur'us over ener&y
char&es recovered fro$ sa'e to such other arties sha'' be ad>usted a&ainst the caacity
char&e 'iabi'ity of the rocurer. In case the sur'us over ener&y char&es is hi&her than
the caacity char&e 'iabi'ity of the rocurer< such eAcess over the caacity char&e
'iabi'ity sha'' be retained by the se''er.
Energ$ )harges
1 4.11. 3here a'icab'e< the ener&y char&es ayab'e durin& the oeration of the
contract sha'' be re'ated on the base ener&y char&es secified in the bid with
suitab'e rovision for esca'ation. In case the bidder rovides fir$ ener&y char&e
rates for each of the years of the contract ter$< the sa$e sha'' be er$itted in the
tariffs. In other cases< the ener&y char&es sha'' be ayab'e in accordance with fue'
esca'ation indeA used for eva'uation of the bid. In case of bids based on net heat
rate< the rice of fue' sha'' be ta4en as stiu'ated under ara 4.2. Gowever< the fue'
esca'ation wi'' be sub>ect to any ad$inistered rice $echanis$ of -overn$ent or
indeendent re&u'atory rice fiAation in case of fue' roduced within the country.
1he a'icab'e indices for various fue's sha'' be identified in the #8P docu$ents.
2 4.12. No ad>ust$ent sha'' be rovided for heat rate de&radation of the &eneratin&
stations. +ven in case of bids based on net heat rate< the bidder sha'' factor in site
conditions< 'oadin& conditions< fre=uency variations etc and no ad>ust$ent sha'' be
a''owed on the =uoted net heat rate for the duration of the contract.
3 4.13. In case a bidder offers hydro ower< under Case 1 or the rocurer invites
bids of hydro ower under Case $< the hydro'o&ica' ris4 sha'' be borne by the
Procurer< rovided the hydro'o&ica' data of such a ro>ect is based on authentic
sources and is 4nown to the arties in advance. Any hydro'o&ica' advanta&es
resu'tin& in ener&y avai'abi'ity beyond the desi&n ener&y sha'' be assed on to the
Procurer without any char&e. 1he &eo'o&ica' ris4 for the hydro ro>ect sha'' be
borne by the deve'oer.
4 4.14. +ner&y char&es sha'' be ayab'e by the rocurer to the se''er for the
schedu'ed ener&y. 2eviations beyond a&reed ener&y schedu'es sha'' be sett'ed
under the AB1(?I $echanis$.
)o!#ined ca5acit$ and energ$ charges
1 4.15. In cases where the rocure$ent rocess er$its bidders to sub$it co$bined
caacity and ener&y char&es< the char&es roosed sha'' be fir$ for each of the
years of the ter$ of the Power Purchase A&ree$ent :PPA;< and no esca'ation of
tariffs sha'' be er$itted over and above the rates roosed by the se''er in the
rice bid.
2 4.1". 1he bidder sha'' secify the nor$ative avai'abi'ity fro$ the ro>ect on an
annua' basis. 1he $ode' PPA $ade avai'ab'e to the bidders at the #8H(#8P sta&e
sha'' feature aroriate rovisions for ena'ties in event of the nor$ative
avai'abi'ity not bein& $et by the se''er. 1he #8H(#8P sha'' a'so secify $ini$u$
offta4e conditions for rocure$ent fro$ such stations.
3 4.1). 1he er 4wh rates ayab'e to the se''er for offta4e by the rocurer over and
above the nor$ative 'eve's sha'' be the sa$e as the rates a'icab'e ti'' nor$ative
avai'abi'ity. In case the rocurer does not schedu'e the ener&y $ade avai'ab'e by
the se''er as er the contract< the se''er sha'' be free to se'' to other arties. 1he
se''er sha'' not be re=uired to $a4e any ay$ents to the rocurer for such sa'es to
third arties.
B# idding Process
T:o3stage process
1 5.1. 8or 'on&!ter$ rocure$ent under these &uide'ines< a two!sta&e rocess featurin&
searate #e=uest for Hua'ification :#8H; and #e=uest for Proosa' :#8P; sta&es sha''
be adoted for the bid rocess under these &uide'ines. 1he rocurer $ay< at his otion<
adot a sin&'e sta&e tender rocess for $ediu$ ter$ rocure$ent< co$binin& the #8P
and #8H rocesses. Procurer or authoriEed reresentative sha'' reare bid docu$ents
inc'udin& the #8H and #8P in 'ine with these &uide'ines and standard bid docu$ents.
2 5.2. 1he rocurer sha'' ub'ish a #8H notice in at 'east two nationa' newsaers<
co$any website and referab'y in trade $a&aEines a'so to accord it wide ub'icity.
1he biddin& sha'' necessari'y be by way of Internationa' 7o$etitive Biddin& :I7B;.
8or the urose of issue of #8H $ini$u$ conditions to be $et by the bidder sha'' be
secified by the rocurer in the #8H notice.
3 5.3. Procurer sha'' rovide on'y written interretation of the tender docu$ent to any
bidder ( articiant and the sa$e sha'' be $ade avai'ab'e to a'' other bidders. A''
arties sha'' re'y so'e'y on the written co$$unication and accetances fro$ the
bidders.
4 5.4. Standard docu$entation to be rovided by the rocurer in the #8H sha'' inc'ude<
. :i; 2efinition of ProcurerDs re=uire$ents< inc'udin&C
1 Huantu$ of e'ectricity roosed to be bou&ht in M3. 1o rovide f'eAibi'ity to the
bidders< this $ay be secified as a ran&e< within which bids wou'd be acceted.
8urther< the rocurer $ay a'so rovide the bidders the f'eAibi'ity to bid for a art of the
tendered =uantity< sub>ect to a &iven $ini$u$ =uantity.
2 1he rocurer $ay searate'y secify distinct base'oad re=uire$ents and ea4'oad
re=uire$ents throu&h the sa$e bid rocess. Seasona' ower re=uire$ents< if any< sha''
a'so be secifiedJ
3 1er$ of contract roosedJ :as far as ossib'e< it is advisab'e to &o for contract
coincidin& with 'ife of the ro>ect in case of 'on& ter$ rocure$ent;. 1he bidder sha''
be re=uired to =uote tariff structure for eAected 'ife of the ro>ect deendin& uon fue'
roosed by hi$. 1he eAected 'ife ro>ect is esti$ated to be 15 years for &as('i=uid
fue' based ro>ects< 25 years for coa' based ro>ects and 35 years for hydro ro>ects.
4 Nor$ative avai'abi'ity re=uire$ent to be $et by se''er :searate'y for ea4 and off!
ea4 hours< if necessary;J
5 2efinition of ea4 and off!ea4 hoursJ
" +Aected date of co$$ence$ent of su'yJ
) Point:s; where e'ectricity is to be de'iveredJ
* 3herever a'icab'e< the rocurer $ay re=uire construction $i'estones to be
secified by the biddersJ
, 8inancia' re=uire$ents to be $et by bidders inc'udin&< $ini$u$ net!worth<
revenues< etc with necessary roof of the sa$e< as out'ined in the bid docu$entsJ
% :ii; Mode' PPA roosed to be entered into with the se''er of e'ectricity. 1he
PPA sha'' inc'ude necessary detai's onC
1. #is4 a''ocation between artiesJ
11 1echnica' re=uire$ents on $ini$u$ 'oad conditionsJ
12 Assured offta4e 'eve'sJ
13 8orce $a>eure c'auses as er industry standardsJ
14 0ead ti$es for schedu'in& of owerJ
15 2efau't conditions and cure thereof< and ena'tiesJ
1" Pay$ent security roosed to be offered by the rocurer.
% :iii; Period of va'idity of offer of bidderJ
( :iv; #e=uire$ent of transfer of assets by the se'ected bidder :if any; to the
rocurer at the end of the ter$ of the PPA.
) :v; 9ther technica'< oerationa' and safety criteria to be $et by bidder<
inc'udin& the rovisions of the I+-7(State -rid 7ode< re'evant orders of the
Aroriate 7o$$ission :e.& 6 the AB1 9rder of the 7+#7;< e$ission nor$s<
etc.< as a'icab'e.
4 :vi; 1he rocurer $ay< at his otion< re=uire de$onstration of financia'
co$$it$ents fro$ 'enders at the ti$e of sub$ission of the bids. 1his wou'd
acce'erate the rocess of financia' c'osure and de'ivery of e'ectricityJ
B :vii; 1he rocurer and the su'ier $ay eAercise eAit otion sub>ect to the
condition that the new 'ayer satisfies a'' #8P conditions.
' 5.5. #8P sha'' be issued to a'' bidders who have =ua'ified at the #8H sta&e. In
case the bidders see4 any deviations and rocurer finds that deviations are
reasonab'e< the rocurer sha'' obtain arova' of the Aroriate 7o$$ission
before a&reein& to deviation. 1he c'arification(revised!biddin& docu$ent sha''
be distributed to a'' who had sou&ht the #8H docu$ent infor$in& about the
deviations and c'arifications. 3herever revised biddin& docu$ents are issued<
the rocurer sha'' rovide bidders at 'east two $onths after issue of such
docu$ents for sub$ission of bids.
E 5.". Standard docu$entation to be rovided by the rocurer in the #8P sha''
inc'ude<
C :i; Str/ct/re o8 tari88 to 7e detailed 7y 7iddersQ
A :ii; &&/ 5ro5osed to #e entered 'ith the selected #idder#
1he $ode' PPA roosed in the #8H sta&e $ay be a$ended based on the inuts
received fro$ the interested arties< and sha'' be rovided to a'' arties resondin& to
the #8P. No further a$end$ents sha'' be carried out beyond the #8P sta&eJ
% :iii; &a$!ent securit$ to #e !ade a0aila#le #$ the 5rocurer#
1he ay$ent security indicated in the #8H sta&e cou'd be $odified based on feedbac4
received in the #8H sta&e. Gowever no further a$end$ent to ay$ent security wou'd
be er$issib'e beyond the #8P sta&e.
% :iv; %id e0aluation !ethodolog$ to #e ado5ted #$ the
5rocurer including the discount rates for e0aluating the #ids#
1he bids sha'' be eva'uated for the co$osite 'eve''ised tariffs co$binin& the caacity
and ener&y co$onents of the tariff =uoted by the bidder. In case of assorted en=uiry
for rocure$ent of base 'oad< ea4 'oad and seasona' ower< the bid eva'uation for
each tye of re=uire$ent sha'' be carried out searate'y. 1he caacity co$onent of
tariffs $ay feature searate non!esca'ab'e :fiAed; and esca'ab'e :indeAed; co$onents.
1he indeA to be adoted for esca'ation of the esca'ab'e co$onent sha'' be secified in
the #8P. 8or the urose of bid eva'uation< $edian esca'ation rate of the re'evant fue'
indeA in the internationa' $ar4et for the 'ast 3. years for coa' and 15 years for &as (
0N- :as er 7+#7Ds notification in :vi; be'ow; sha'' be used for esca'atin& the ener&y
char&e =uoted by the bidder. Gowever this sha'' not a'y for cases where the bidder
=uotes fir$ ener&y char&es for each of the years of roosed su'y< and in such case
the ener&y char&es roosed by the bidder sha'' be adoted for bid eva'uation. 1he rate
for discountin& the co$bination of fiAed and variab'e char&es for co$utin& the
'eve''ised tariff sha'' be the revai'in& rate for 1. year -oI securitiesJ
1 :v; 1he #8P sha'' rovide the $aAi$u$ eriod within which the se'ected bidder $ust
co$$ence su'ies after the PPA is entered into by the rocurer with the se'ected
bidder< sub>ect to the ob'i&ations of the rocurer bein& $et. 1his sha'' ordinari'y not
be 'ess than four years fro$ the date of si&nin& of the PPA with the se'ected bidder in
case su'y is ca''ed for 'on& ter$ rocure$ent. 1he #8P sha'' a'so secify the
'i=uidated da$a&es that wou'd a'y in event of de'ay in su'ies.
2 :vi; 8o''owin& sha'' be notified and udated by the 7+#7 every siA $onths for the
urose of bid eva'uationC
1 1. A'icab'e discount rate
2 2. +sca'ation rate for coa'
3 3. +sca'ation rate for &as (0N-
4 4. Inf'ation rate to be a'ied to indeAed caacity char&e co$onent.
%id su#!ission and e0aluation
1 5.). 1o ensure co$etitiveness< the $ini$u$ nu$ber of =ua'ified bidders shou'd be at
'east two other than any affi'iate co$any or co$anies of the rocurer. If the nu$ber
of =ua'ified bidders resondin& to the #8H(#8P is 'ess than two< and rocurer sti''
wants to continue with the biddin& rocess< the sa$e $ay be done with the consent of
the Aroriate 7o$$ission.
2 5.*. 8or$ation of consortiu$ by bidders sha'' be er$itted. In such cases the
consortiu$ sha'' identify a 'ead $e$ber and a'' corresondence for the bid rocess
sha'' be done throu&h the 'ead $e$ber. 1he rocurer $ay secify technica' and
financia' criteria< and 'oc4 in re=uire$ents for the 'ead $e$ber of the consortiu$< if
re=uired.
3 5.,. 1he rocurer sha'' constitute a co$$ittee for eva'uation of the bids with at 'east
one $e$ber eAterna' to the rocurerDs or&anisation and affi'iates. 1he eAterna'
$e$ber sha'' have eAertise in financia' $atters ( bid eva'uation. 1he rocurer sha''
revea' ast associations with the eAterna' $e$ber ! direct'y or throu&h its affi'iates !
that cou'd create otentia' conf'ict of interest.
5.1.. +'i&ib'e bidders sha'' be re=uired to sub$it searate technica' and rice bids.
Bidders sha'' a'so be re=uired to furnish necessary bid!&uarantee a'on& with the bids.
Ade=uate and reasonab'e bid!&uarantee sha'' be ca''ed for to e'i$inate non!serious
bids. 1he bids sha'' be oened in ub'ic and reresentatives of bidders desirin& to
articiate sha'' be a''owed to re$ain resent.
1 5.11. 1he technica' bids sha'' be scored to ensure that the bids sub$itted $eet
$ini$u$ e'i&ibi'ity criteria set out in the #8P docu$ents on a'' technica' eva'uation
ara$eters. 9n'y the bids that $eet a'' e'e$ents of the $ini$u$ technica' criteria set
out in the #8P sha'' be considered for further eva'uation on the rice bids.
2 5.12. 1he rice bid sha'' be re>ected if it contains any deviation fro$ the tender
conditions for sub$ission of rice bids.
3 5.13. 3herever a'icab'e< the rice bid sha'' a'so secify the ter$ina' va'ue ayab'e
by the Procurer for the transfer of assets by the se'ected bidder in accordance with the
ter$s of the #8P.
4 5.14. 1he bidder $ay =uote the rice of e'ectricity at the &eneratin& station bus!bar
:net of auAi'iaries;< or at the interface oint with the State trans$ission networ4. 8or
uroses of standardiEation in bid eva'uation< the tariffs sha'' be co$ared at the
interface oint of the &enerator(su'ier with the State trans$ission networ4. In case
the bidder =uotes his rate at the &eneratin& station bus!bar< nor$ative trans$ission
char&es for the re&iona'(inter!re&iona' networ4< if a'icab'e< based on the revai'in&
7+#7 orders sha'' be added to the rice bid sub$itted. 1he char&es for the State
trans$ission networ4 sha'' be ayab'e by the rocurer< and sha'' not be a art of the
eva'uation criteria.
5 5.15. 1he bidder who has =uoted 'owest 'eve''ised tariff as er eva'uation rocedure<
sha'' be considered for the award. 1he eva'uation co$$ittee sha'' have the ri&ht to
re>ect a'' rice bids if the rates =uoted are not a'i&ned to the revai'in& $ar4et rices.
e0iation fro! 5rocess de3ned in the guidelines
1 5.1". In case there is any deviation fro$ these &uide'ines< the sa$e sha'' be sub>ect to
arova' by the Aroriate 7o$$ission. 1he Aroriate 7o$$ission sha'' arove
or re=uire $odification to the bid docu$ents within a reasonab'e ti$e not eAceedin&
,. days.
Ar7itration
1 5.1). 1he rocurer wi'' estab'ish an A$icab'e 2isute #eso'ution :A2#; $echanis$
in accordance with the rovisions of the Indian Arbitration and 7onci'iation Act< 1,,".
1he A2# sha'' be $andatory and ti$e!bound to $ini$iEe disutes re&ardin& the bid
rocess and the docu$entation thereof.
If the A2# fai's to reso've the disute< the sa$e wi'' be sub>ect to >urisdiction of the
aroriate #e&u'atory 7o$$ission under the rovisions of the +'ectricity Act 2..3.
Ti!e Ta#le for %id &rocess
1 5.1*. A su&&ested ti$e!tab'e for the bid rocess is indicated be'ow. 1he rocurer $ay
&ive eAtended ti$e!fra$e indicated herein based on the revai'in& circu$stances and
such a'terations sha'' not be construed to be deviation fro$ these &uide'ines.
+vent
Ela!sed Time from 1ero
date
Pub'ication of #8H
1ero date
Sub$ission of #esonses of #8H
20 da3s
Short'istin& based on resonses and issuance of
#8P
+0 da3s
Bid c'arification< conferences etc 140 da3s
8ina' c'arification and revision of #8P 1"0 da3s
1echnica' and rice bid sub$ission 320 da3s
Short'istin& of bidder and issue of 09I 3+0 da3s
Si&nin& of A&ree$ents .24 da3s
2.-. A suggested time6ta"le 7or the $ingle stage "id process is indicated "elo8. %he procurer
may gi9e e:tended time67rame indicated herein "ased on the pre9ailing circumstances and
such alterations shall not "e construed to "e de9iation 7rom these guidelines.
+vent +'ased 1i$e fro$
@ero date
Pub'ication of #8P @ero date

Bid c'arification< conferences etc. % revision of #8P

,. days
1echnica' and rice bid sub$ission

1*. days
Short!'istin& of bidder and issue of 09I 21. days

Si&nin& of A&ree$ents 24. days

'# Contract a:ard and concl/sion
. ".11. 1he PPA sha'' be si&ned with the se'ected bidder conse=uent to the
se'ection rocess in accordance with the ter$s and conditions as fina'iEed in
the bid docu$ent before the #8P sta&e.
1 ".12. 7onse=uent to the si&nin& of the PPA between the arties< the eva'uation
co$$ittee sha'' rovide aroriate certification on adherence to these
&uide'ines and to the bid rocess estab'ished by the rocurer.
2 ".13. 1he rocurer sha'' $a4e eva'uation of bid ub'ic by indicatin& ter$s of
winnin& bid and anony$ous co$arison of a'' other bids. 1he rocurer sha''
a'so $a4e ub'ic a'' contracts si&ned with the successfu' bidders.
3 ".14. 1he fina' PPA a'on& with the certification by the eva'uation co$$ittee
sha'' be forwarded to the Aroriate 7o$$ission for adotion of tariffs in
ter$s of Section "3 of the Act.
:A>ay Shan4ar;
Additiona' Secretary to the -overn$ent of India
0E2A P"WE+ P+"-ECTS 6 +E.ISED P"!IC1 2,IDE!INES
1he &uide'ines for settin& u of $e&a ower ro>ects of caacity 1... M3 or $ore su'yin&
ower to $ore than one State had been issued vide 2.9. 'etter N. 7.!2*"(,5!IP7< dated 1.th
Nove$ber< 1,,5. After considerin& the eAerience of this o'icy< the o'icy has been recast and is
su$$arised be'owC
1. Inter!state and Inter!re&iona' $e&a ower ro>ects are roosed to be set u both in the ub'ic
and rivate sectors. In the ub'ic sector< the Nationa' 1her$a' Power 7ororation :N1P7; and
2a$odar /a''ey 7ororation :2/7; wou'd be settin& u the fo''owin& ro>ectsC Iaha'&aon Sta&e II
:15.. M3;< North Iaranura S1PP:2... M3;< Barh S1PP:2... M3;< Maithon Pro>ect :1...
M3; and 7heyyur :15.. M3;. In addition< N1P7 wou'd be eAandin& the four &as based 'ants<
na$e'y< Anta< Auriya< Iawas and -andhar to an additiona' caacity of 13.. M3 each.
1he Nationa' Gydro!+'ectric Power 7ororation:NGP7; wou'd be ta4in& u the fo''owin&
Inter!state ro>ectsC Ioe'!Iaro :)1. M3;< 7ha$era!II :3.. M3;< 1eesta!/ :51. M3;< Io'da$ :*..
M3;and Parvati :*.. M3;.
In the rivate sector< in addition to Inter!re&iona' Gir$a :" A "". M3; ro>ect in 9rissa< the
fo''owin& ro>ects are a'so roosed to be ta4en uC 7udda'ore :1... M3; ! based on a b'end of
do$estic and i$orted coa'J Irishnaattana$ :15.. M3; ! based on a b'end of do$estic and
i$orted coa'J Piavav :2... M3; ! based on i$orted coa' and Nar$ada : 1... M3< which cou'd
be eAanded to 2... M3 ;< based on 0N-. 1wo or three $ore ro>ects based on 0N-< $ay be
deve'oed on the 3estern coast 'ater.1hese fue' otions can be revised based on feasibi'ity and cost.
2. 1he Standin& Indeendent -rou :SI-; which had been constituted by the -overn$ent of
India in Nove$ber< 1,,)< to estab'ish ara$eters for ne&otiation of 'ar&e ower &eneration ro>ects
wou'd initia''y be the aeA body to oversee the i$'e$entation of the $e&a rivate ower ro>ects.
1he rinci'es of co$etitive biddin& wou'd be adhered to as far as ossib'e< whi'e obtainin& tariff
offers.
3. A Power 1radin& 7o$any:P17; wou'd be estab'ished with $a>ority e=uity articiation by
Power -rid 7ororation of India 0td. :P-7I0;< a'on& with N1P7< Power 8inance 7ororation :P87;
and other financia' institutions. 7oncerned State -overn$ents(State +'ectricity Boards :S+Bs; wou'd
a'so be co!oted< if found feasib'e. 1he P17 wou'd urchase ower fro$ the identified rivate
ro>ects and se'' it to the identified State +'ectricity Boards. As ower wou'd be so'd to the States<
the concurrence of the concerned State -overn$ents wou'd be ta4en. Security to the P17 wou'd be
rovided by $eans of a 0etter of 7redit and recourse to the StateDs share of 7entra' P'an A''ocations
and other devo'utions. Gowever< P17 $ay a'so< if feasib'e< su'y ower direct'y to a Kc'usterD< 'i4e
'icensees and industria' estab'ish$ents. 1he settin& u of P17 wou'd enab'e $e&a!ro>ects to
ne&otiate with one buyer on'y and wou'd e'i$inate $e&a!ro>ects ris4 re&ardin& ay$ents. Such
security wou'd substantia''y brin& down the tariff fro$ such ro>ects.
4. A re!condition wou'd be that the beneficiary States shou'd have constituted their #e&u'atory
7o$$issions with fu'' owers to fiA tariffs as envisa&ed in the 7entra' Act. 1hey wou'd a'so have to
rivatise distribution in the cities havin& a ou'ation of $ore than one $i''ion. Si$i'ar co$forts
wou'd be &iven to ub'ic sector ro>ectsJ however< they wou'd dea' direct'y with the S+Bs and not
throu&h the P17.
5. 1he i$ort of caita' e=ui$ent wou'd be free of custo$s duty for these ro>ects. In order to
ensure that do$estic bidders are not adverse'y affected< rice reference of 15B wou'd be &iven for
the ro>ects under ub'ic sector< whi'e dee$ed eAort benefits as er the +5IM o'icy wou'd be &iven
to do$estic bidders for ro>ects both under ub'ic and rivate sector. 1he do$estic bidders wou'd be
a''owed to =uote in ?S 2o''ars or any other forei&n currency of their choice. In addition< the inco$e!
taA ho'iday re&i$e wou'd be continued with the rovision that the taA ho'iday eriod of 1. years can
be c'ai$ed by a ro$oter in any b'oc4 of 1. years< within the first 15 years. 1he State -overn$ents
are re=uested to eAe$t su'ies $ade to $e&a ower 'ants fro$ sa'es taA and 'oca' 'evies.
". A'' such $easures and the econo$ies of sca'e in $e&a ro>ects wou'd substantia''y brin&
down tariffs fro$ such identified $e&a ro>ects to rovide $uch needed re'ief to State +'ectricity
Boards fro$ risin& tariffs fro$ &eneratin& stations< both in ub'ic and rivate sector. 1he o'icy
wou'd a'so enab'e i$'e$entation of a o'icy where 'ar&e ro>ects are set u at viab'e it head sites<
coasta' 'ocations and hyde' source< thus e'i$inatin& the unnecessary $ove$ent of fue' by rai' and
encoura&in& the settin& u of nationa' trans$ission &rid. 1he taA concessions are necessary as these
ro>ects wou'd he' in cata'ysin& refor$s which are crucia' to the restoration of the financia' hea'th of
the State +'ectricity Boards and wou'd a'so he' to acce'erate the estab'ish$ent of syste$s that wou'd
transfer ower across states and re&ions.
). 1he ro>ects wou'd be offered to the deve'oers on'y after a'' the c'earances('and have been
obtained so that ro>ects can start soon after they are &ranted to the $ost co$etitive bidder. 1he
environ$enta' c'earance wou'd be &iven in two hases by the Ministry of +nviron$ent and 8orest !
the site c'earance bein& &iven initia''y. Initia' ro>ect deve'o$ent eAenses wou'd be incurred by
desi&nated 7entra' Pub'ic Sector ?nderta4in& which wou'd be recoued fro$ the successfu'
deve'oers. P-7I0 wou'd be entrusted with deve'oin& the re=uired trans$ission networ4. Since the
trans$ission networ4 wou'd deend uon the identification of the beneficiary States< P-7I0 wou'd
identify the sche$es and the corresondin& costs of these trans$ission sche$es. It wou'd interact
with the beneficiary states to identify the re=uisite invest$ent re=uired in trans$ission and
distribution on the states side to absorb the ower &enerated by the $e&a ro>ect.
*. It is visua'ised that the country wou'd be addin& 15<...!2.<... M3 of caacity throu&h this
o'icy at the $ost co$etitive tariffs ayab'e by State +'ectricity Boards and conse=uent'y by
consu$ers.
CAPTI.E 2ENE+ATI"N
1he 'ibera' rovision in the +'ectricity Act< 2..3 with resect to settin& u of cative ower 'ant has
been $ade with a view to not on'y securin& re'iab'e< =ua'ity and cost effective ower but a'so to
faci'itate creation of e$'oy$ent oortunities throu&h seedy and efficient &rowth of industry.
1he rovision re'atin& to cative ower 'ants to be set u by &rou of consu$ers is ri$ari'y ai$ed
at enab'in& s$a'' and $ediu$ industries or other consu$ers that $ay not individua''y be in a osition
to set u 'ant of oti$a' siEe in a cost effective $anner. It needs to be noted that efficient eAansion
of s$a'' and $ediu$ industries across the country wou'd 'ead to creation of enor$ous e$'oy$ent
oortunities.
A 'ar&e nu$ber of cative and standby &eneratin& stations in India have sur'us caacity that cou'd be
su'ied to the &rid continuous'y or durin& certain ti$e eriods. 1hese 'ants offer a siEeab'e and
otentia''y co$etitive caacity that cou'd be harnessed for $eetin& de$and for ower. ?nder the
Act< cative &enerators have access to 'icensees and wou'd &et access to consu$ers who are a''owed
oen access. -rid inter.connections for cative &enerators sha'' be faci'itated as er Section 3. of the
Act. 1his shou'd be done on riority basis to enab'e cative &eneration to beco$e avai'ab'e as
distributed &eneration a'on& the &rid. Aroriate co$$ercia' arran&e$ents wou'd need to be
instituted between 'icensees and the cative &enerators for harnessin& of sare caacity ener&y fro$
cative ower 'ants. 1he aroriate #e&u'atory 7o$$ission sha'' eAercise re&u'atory oversi&ht on
such co$$ercia' arran&e$ents between cative &enerators and 'icensees and deter$ine tariffs when a
'icensee is the off!ta4er of ower fro$ cative 'ant.
RCaptive generating plant $eans a ower 'ant set u by any erson to &enerate e'ectricity
ri$ari'y for his own use and inc'udes a ower 'ant set u by any cooerative society or association
of erson for &eneratin& e'ectricity ri$ari'y for use of $e$bers of such cooerative society or
association.
7ative -eneration has been free'y er$itted. 1he +'ectricity Act< 2..3 does away with the
re=uire$ent of arova' ( c'earance of any authority :S+B(7+A; for settin& u of cative &eneratin&
'ant. 1he new 'aw a'so ensures non!discri$inatory oen access for trans$ission of e'ectricity
&enerated fro$ a cative &eneratin& 'ant to the destination of its use< sub>ect to avai'abi'ity of
trans$ission caacity and have to ay trans$ission char&es and eAe$t fro$ ay$ent of surchar&e.
Any erson settin& u a cative ower 'ant can a'so estab'ish and $aintain dedicated trans$ission
'ines.
RCogeneration $eans a rocess viE. si$u'taneous'y roduces 2 or $ore for$s of usefu' ener&y
:inc'udin& e'ectricity;.
EXT+ACTS "F N"TIFICATI"N ISS,ED 1 DEPA+T0ENT "F +E.EN,E AS "N
%#)#(&&)
:B; Accessories of the $edica' e=ui$ent at
:A; aboveJ
5B ! !
:7; Parts re=uired for the $anufacture< and
sare arts re=uired for the $aintenance< of the
$edica' e=ui$ent at :A; aboveJ
5B Ni' 11
:2; 7ontinuous A$bu'atory Peritonea'
2ia'ysis :7AP2; 8'uid contained in a so'ution
ba& with or without tubin& syste$J
5B ! !
:+; Accessories of :2; aboveJ 5B ! !
:8; Parts re=uired for the $anufacture of :2;
above
5B Ni' 11RJ
:cAi; a&ainst S.No.3"4< !
:a; for the entry in co'u$n :4;< the entry P5BQ sha'' be substitutedJ and
:b; for the entry in co'u$n :5;< the entry P!Q sha'' be substitutedJ
:cAii; a&ainst S.No.3")< for the entry in co'u$n :5;< occurrin& a&ainst ite$ :A;< the entry P!Q sha'' be
substitutedJ
:cAiii; a&ainst S.No.3"*< for each of the entry in co'u$n :5;< occurrin& a&ainst ite$s :A; and :B;< the
entry P!Q sha'' be substitutedJ
:cAiv; a&ainst S.No.3",< for the entry in co'u$n :5;< the entry P!Q sha'' be substitutedJ
:cAv; a&ainst S.No.3)1<!
:a; for the entry in co'u$n :2;< the entry P,. or ,*.4 ,. ..R sha'' be substitutedJ
and
:b; for the entry in co'u$n :4;< the entry P5BQ sha'' be substitutedJ
:cAvi; a&ainst S.No.3)3<!
:a; for the entry in co'u$n :4;< the entry P5BQ sha'' be substitutedJ and
:b; for the entry in co'u$n :";< the entry P!Q sha'' be substitutedJ
:cAvii;a&ainst S.No.3)5<!
:a; for the entry in co'u$n :2;< the entry P,..1 1. ..R sha'' be substitutedJ and
:b; for the entry in co'u$n :4;< the entry P2.BQ sha'' be substitutedJ
:cAviii; a&ainst S.No.3)"< for the entry in co'u$n :2;< the entry P,.." ,1 ..R sha'' be
substituted.
:cAiA; a&ainst S.No.3))< for the entry in co'u$n :2;< the entry P,..)< ,.., ,1 ..<,.., ,2 ..<,..,
,3 ..<,.., ,, ..<,.1. 1. ..<,.1. 5. .. or ,.1. ,. ..R sha'' be substitutedJ
:cAA; a&ainst S.No.3*.< for the entry in co'u$n :2;< the entry P,.1) 1. .. or ,.1) 2.R sha'' be
substitutedJ
:cAAi; a&ainst S.No.3*1< for the entry in co'u$n :2;< the entry P,.1) ,. ..R sha'' be substitutedJ
:cAAii; a&ainst S.No.3*5< for the entry in co'u$n :4;< the entry PNi'Q sha'' be substitutedJ
:cAAiii;a&ainst S.No.3*)< the entries in co'u$ns :2; to :"; sha'' be o$ittedJ
:cAAiv;a&ainst S.No.3**< for the entry in co'u$n :2;< the entry P,1 or ,*.4 ,. ..R sha'' be
substitutedJ
:cAAv; a&ainst S.No.3,4< for the entry in co'u$n :2;< the entry P,5.3 1. .. and ,5.3 ,.R sha'' be
substitutedJ
:cAAvi;a&ainst S.No.3,*< for the entry in co'u$n :2;< the entry P,)." .. ..R sha'' be substitutedJ
:cAAvii;for S.No.4.. and the entries re'atin& thereto< the fo''owin& sha'' be substituted< na$e'yC!
:1; :2; :3; :4; :5; :";
P4... ,*.1 -oods re=uired for settin& u of Ni' Ni' *"RJ
any Me&a Power Pro>ect< that is
to say !
:a; an inter!State ther$a' ower
'ant of a caacity of 1... M3
or $oreJ or
:b; an inter!State hyde' ower
'ant of a caacity of 5.. M3
or $ore<Q
as certified by an officer not be'ow
the ran4 of a Foint Secretary to the
-overn$ent of India in the Ministry
of Power.
:cAAviii;a&ainst S.Nos. 4.2< 41.< 411< 412< 413 and 414< the entries in co'u$ns :2; to :"; sha'' be
o$ittedJ
:cAAiA; a&ainst S.No.415< for the entry in co'u$n :2;< the entry P)32. ,. ,.< *445< *44* 2. ..<
*4*3 ,. ..< *4*4 ,. .. or *4*5 ,. ..R sha'' be substitutedJ
+ESE+.E ANF "F INDIA
P+ESS +E!EASE
P+ESS +E!ATI"NS DI.ISI"NS; CENT+A! "FFICE; P"ST
"X 4&'; "0A1 4&&&() 2+A0 +ESE+.E ANF
PD"NE ()'&B&(
%&&? Foreign Investment in Privately ":ned Po:er Sector
-overn$ent of India in their -aEette Notification No. 23) dated 22
nd
9ctober 1,,1 have notified that
forei&n invest$ent to the eAtent of 1..B wi'' be er$itted in the ower sector in rivate'y owned
enterrises. It has since been c'arified by the Ministry of 8inance that the condition of dividend
ba'ancin& by eAort earnin&s which is nor$a''y bein& a'ied to cases of forei&n invest$ent uto
51B e=uity wi'' not be a'icab'e to such forei&n invest$ents in the ower sector.
Press #e'ease 1,,1!1,,2(2""
2".E+N0ENT "F INDIA
0inistry o8 Commerce < Ind/stry
Department o8 Ind/strial Policy < Promotion
SIA $FC DI.ISI"N*
P+ESS N"TE N"# E $(&&& Series*
S/7=ect6 +evie: o8 e>isting sectoral policy and sectoral e@/ity cap 8or Foreign Direct
Investment $FDI*JNon +esident Indian $N+I*J"verseas Corporate odies $"C*
Investment#
In ursuance of -overn$entDs 7o$$it$ent to further 'ibera'isin& the 82I re&i$e<
-overn$ent< on review of the o'icy on 82I< has decided to brin& about the fo''owin& chan&es
in the 82I o'icy.
I. 8orei&n 2irect Invest$ent uto 1..B is a''owed for e!co$$erce activities sub>ect to
the condition that such co$anies wou'd divest 2"B of their e=uity in favor of the
Indian ub'ic in 5 years< if these co$anies are 'isted in other arts of the wor'd.
8urther< these co$anies wou'd en&a&e on'y in business to business :B2B; e!co$$erce
and not in retai' tradin&< inter a'ia< i$'yin& that eAistin& restrictions on 82I do$estic
tradin& wou'd be a'icab'e to e!co$$erce as we''.
II. /ide Press Note No. 12 of 1,,2 series< it had been decided to withdraw the condition of
dividend ba'ancin& in a'' forei&n invest$ent arova's eAcet for industries in the 22
secified consu$er &oods sector. 9n review of the eAistin& o'icy on dividend
ba'ancin& a'icab'e to 22 secified consu$er &oods industries< and with a view to
attractin& 82I< it has been decided< with i$$ediate effect< to re$ove the condition of
dividend ba'ancin& on these 22 consu$er &oods industries. 1his decision wi'' co$e into
force fro$ the date of issue of this Press Note and the eAort ob'i&ation and
conco$itant dividend ba'ancin& wi'' re$ain a'icab'e unti' the date of issue of this
Press Note.
III. ?nder Press Note No.2 of 1,,* series< ro>ects for e'ectricity &eneration< trans$ission
and distribution with forei&n e=uity uto 1..B had been $ade e'i&ib'e for auto$atic
arova' rovided the forei&n e=uity in any such ro>ect does not eAceed #s.15.. crore.
1he cate&ories that =ua'ified for such auto$atic arova' are hydroe'ectric ower
'ants< coa'('i&nite based ther$a' ower 'ants< oi' based ther$a' ower 'ants and &as
based ther$a' ower 'ants. -eneration< trans$ission and distribution of e'ectrica'
ener&y roduced in ato$ic reactor ower 'ants is not 'e&ib'e for auto$atic arova'.
Ieein& in view the &rowin& de$and for ower in the country and the need for $ore
invest$ent in this sector< -overn$ent< as art of further 'ibera'iEation of 82I re&i$e<
has decided to re$ove the uer 'i$it for forei&n direct invest$ent in resect of
ro>ects re'atin& to e'ectric &eneration< trans$ission and distribution :other than ato$ic
reactor ower 'ants;.
I/. As er eAistin& &uide'ines for 82I in etro'eu$ sector< 82I in refinin& is er$itted uto
2"B :ub'ic sector ho'din& of 2"B and ba'ance 4*B by ub'ic;. In case of rivate
Indian co$anies< 82I in refinin& is er$itted uto 4,B. -overn$ent< as art of
'iberation of 82I re&i$e has decided to increase the 'eve' of 82I in oi' refinin& sector
under auto$atic route fro$ the eAistin& 4, B to 1..B
:M.S. S#INI/ASAN;
Foint Secretary to the -overn$ent of India
No.):4;(2...!IP dated 14
th
Fu'y 2....
I# Contact Addresses o8 0inistry o8 Po:er
Designation Name Telep5oneJ Fa>
Minister of Power Shri P.M. Sayeed
1e'C 23)1!)4)4< 23)1!.411
8aAC 23)1!.."5
PS to M9P Shri @.A. Na=vi
1e'C 23)1!.411
8aAC 23)1!.."5
9S2 to M9P Shri P.7. 1anwar
1e'C 23)1!)4)4
8aAC 23)1!.."5
Secretary:Power; Shri #./. Shahi
1e'C 23)1!131"< 23)1!.2)1
8aAC 23)2!14*)
Secia' Secretary

Gyde'< 1rans$ission< 9M< IP7<
1%#< Ad$inistration
Shri 2.N.Padhi
1e'C 23)1!43")
8aAC 23)3!12""
Additiona' Secretary
Po'icy % P'annin&< S+Bs<
+Aterna' Assistance< /i&i'ance %
Security< #+7< P87< #efor$s %
#estructurin&< 90
Shri A>ay Shan4ar 1e'efaAC 23)1!53)*
-oint Secretaries
8inancia' Adviser Shri M.Sahoo 1e'C 23)1!.1)1
Ad$inistration< 1her$a'<
9M % 90
Shri Garish 7handra 1e'C 23)1!.3*,
2istribution< 1her$a'<
AP2#P< I1 % #+S1
Shri Arvind Fadhav 1e'efaAC 23)1!4*42
Gyde'< Invest$ent
Pro$otion 7e''< 9M<
7oordination and Press %
Pub'icity
Shri A.I. Iutty 1e'efaAC 23)1!.1,,
1rans$ission< +7 % ++<
1%#< Power 1radin&
Shri -ireesh B. Pradhan 1e'C 23)1!4..,
Directors
#efor$s % #estructurin&< /%S<
I7 % #+
Shri A'o4 Iu$ar 1e'C 23)1!4...
Po'icy % P'annin&< P87 Shri Sudha4ar Shu4'a 1e'. 23)1!))53
IP7 % Gyde'!II Shri San>ay 7hadha 1e'C 23)1!532)
1her$a' Shri Ashwini Iaoor 1e'C 23)1!13,4
1rans$ission< -enera'<
7ash< Ad$in!III< 0ibrary<
Par'ia$ent
Shri 2.7. Srivastava 1e'C 23)1!525.
Gyde'!I Shri #. /er$a 1e'C 23)1!13.2
9M Shri A.I. SaAena 1e'C 23)1!"")4
Dep/ty Secretaries
8inance Shri Saurabh Iu$ar 1e'C 23)1!)1,"
7oordination Shri 7handan Sin&h 1e'C 23)1!55,5
1%# 0s# ina Prasad 1e'C 23)5!24,"
1her$a'!I S5ri F#F#C5/g5 1e'. 23)5!24,)
Ad$inistration!I<II % III Shri 9.S. Naru'a Tel#()E%34%&&
-rievance S$t. Nir$a' #ao Tel6 ()E%4%'C
9.0. Ms. Asha Nayyar ()EB(4AB
I.1. S$t. 2haritri Panda ()E%'&(&
Contacts State Electricity +eg/latory Commissions
Name and designation Code
Telep5one No#
Fa>
"88ice +es#
Shri N. Barua<7hair$an< Assa$
+'ectricity #e&u'atory
7o$$ission.A!12(334< Gousin&
7o$'eA< 1riura #oad<
Ihannaara<
-uwati! )*1 .22.
.3"1 541.,. 2"5)3.
Shri -.P.#ao< 7hair$an< Andhra
Pradesh +'ectricity #e&u'atory
7o$$ission
No.*!2!2*3(B(1< #oad No.3
Ban>ara Gi''s< Gyderabad 5.. .34
.4. 3542"** 354251, 335""4.
Shri /.I. Sood< 7hair$an< 2e'hi
+'ectricity #e&u'atory
7o$$ission</inaya4 Bhavan<
Shiva'i4< Ma'viya Na&ar< New
2e'hi 6 1).
.11
2"")3".*
:1e'efaA;
2"")3".2
2"*"*1)3
2"514.4,
Fustice S.2.2ave. 7hair$an<
-u>arat +'ectricity #e&u'atory
7o$$ission< /th 8'oor< 7entre
Point< Panchavati< e''isbrid&e<
Ah$edabad 6 3*. .."
.), "5*4542 "5*4"*4
Shri S. S. -uta< 7hair$an<
Gi$acha' Pradesh +'ectricity
#e&u'atory 7o$$ission<
Ieontha' 7o$$ercia' 7o$'eA<
Iha'ini< Shi$'a ! 1)1..2
.1)) 22)1"2 22)2"2
Shir I.S. 7haube< 7hair$an<
Garyana +'ectricty #e&u'atory
7o$$ission< S79!1*.< Sector! 5<
Panch4u''a! 134 1.,
1)2 5)235, 5)2,," 5*25*1
1he 7hair$an< Fahar4hand State
+'ectricty #e&u'atory
7o$$ission< 2
nd
8'oor< #a>endra
Fawan Bhawan!cu$! Saini4
BaEar< Main #oad< #anchi !
*34..1
."51
233.,23
233.,22 233.,24
1he 7hair$an< Iera'a +'ectricty
#e&u'atory 7o$$ission<
1hiruvanthaura$
Shri Phi''ioose Mathai<
7hair$ain
Iarnata4a +'ectricity #e&u'atory
7o$$ission< No.,(2<
Maha'aAa$i 7ha$bers< "
th
% )
th

8'oor< M.-. #oad< Ban&a'ore 6
5". ..1
.*.
532.33"(3*
532.35" 353"*"3
Shri P.I Mehrotra< 7hair$ain
Madhya Pradesh +'ectricity
#e&u'atory 7o$$ission< ?r>a
Bhawan< Shiva>i Na&ar< Bhoa' !
4"2.1"
.)55 )""*51
55)*1,
,*45..1*,2
:M;
2,1,,,
Shri P.Subra$anya$< 7hair$ain
Maharashtra +'ectricity
#e&u'atory 7o$$ission< 3or'd
1rade 7enter< 7enter No. 1< 13
th

8'oor< 7uffee Parade< 7o'a$ba<
Mu$bai ! 4....5.
.22
21"3,)"
21"3,".
,*21234)"1
:M;
3").555(1555
Shi 9.7.Sahoo< 7hair$an<9rissa
+'ectricty #e&u'atory
7o$$ission< Bidyut Niya$a4
.")4
4133."
41,)*1
41*233 531"5"
Bhawan< ?nit!/III<
Bhubaneshwar!)51.12.
Shri #.S. Mann< 7hair$an<
Pub>ab State +'ectricity<
#e&u'atory 7o$$ission< 51)<
Sector 33B< 7handi&arh.
.1)2 ""*..2 ""4)5* 54,3"2
Shri Arun Iu$ar< 7hair$an<
#a>asthan 7o$$ission< Shed No.
5< /idyut Bhawan< /idyut Mar&<
Fyoti Na&ar<Faiur!3.2..5.
.141 )4..") 5"1324
1hiru A. Ba'ra>< 7hair$an< 1a$i'
Nadu +'ectricity #e&u'atory
7o$$ission< /etha Manssion<
No. 1)< 3
rd
#oad< Seeta$$a'
7o'ony< A'waret< 7hennai!
"...1*<
.44
4354,*2
4322.3)
4354,3. 4*1*124
Shri F.0. Ba>a>< 7hair$an< ?ttar
Pradesh +'ectricity #e&u'atory
7o$$ission< Iisan Mandi< 2
nd

8'oor< 0uc4now !22".1..
.522 3..2,2(35* 3..35*(3*)
21..51
,14512144
:Noida;
Shri Satyendra Nath -hosh<
7hair$an< 3est Ben&a'
+'ectricity #e&u'atory
7o$$ission< 8'at No. 2%3<
Bui'din& No. B!5< 82 415A<
Poura Bhaban :3
rd
8'oor;< Sector!
III< Bidhanna&ar< 7a'cutta
!)...,1.
.33
5,33,)1
35,,)2.
35,3553 21"2"**
Shri 2iva4ar 2ev< 7hari$an<
?ttrancha' +'ectricity #e&u'atory
7o$$ission< *. /asant /ihar
:Phase!I;< 2ehradun.
.135
)"21."
,*3).5,
52.:M;
Contacts 3 Secretary $Po:erJEnergy* States
Name and designation Code
Telep5one No#
Fa>
"88ice +es#
Shri /.S. Sa$ath<
Princia' Secretary<
+ner&y 2eart$ent -overn$ent
of Andhra Pradesh< Gyderabad
5.. ..1
.4.
3455452
34533.5
.,*4*.53.52
33,12,"

354*45.
3455452
34533.5
Shri Su$eet Ferath<
7o$$issioner :Power;< +ner&y
2eart$ent<
-overn$ent of Assa$<
2isur )*1 ..5
.3"1 2".23) 2"1312
2".,..

Shri A.I.?adhyay<
Princia' Secretary< +ner&y
2eart$ent< -overn$ent of
Bihar< Patna *.. ..*
."12
225412
23,"52
23"2**
232*52
231".4
Shri A.I.-uha
7o$$issioner :P32% Power;<
-overn$ent of Arunacha'
Pradesh< Itana&ar ),1 111
.3". 21254. 212523 215"")
Shri A>ay Pa' Sin&h<
Secretary: +ner&y ;<
-overn$ent of 7hattisharh< #aiur
.))1 221145
331.14
331.1)
22115.
Shri /i>ay Madan<
2eve'o$ent 7o$$issioner<
+'ectricity 2eart$ent< -ovt. of
.*32 2231,"
2225,)
223,,5
3.).)"5:2e
';
2225,)
225254
224.).
-oa<Pana>i 4.3 ..1
2r. :Ms; Man>u'a Subra$ania$
Princia' Secretary<
+ner&y % Petroche$ica' 2ett.<
-overn$ent of -u>arat<
Sachivaya'ay< B'oc4 No.5<
-andhina&ar 3*2 .1.
.), 322..)2 32"14*)
322.1,*

Shri Sudhir Prasad<
Secretary :3#%+ner&y;< -overn$ent of
Fhar4hand<
Nea'
Gouse< #anchi.
."51
2525)3
5.3.12
24224" 2525)3
Shri #.B.Budhira>a
Secretary< +ner&y 2eart$ent<
-overn$ent of Maharashtra<
Bo$bay 4.. ..1
.22
2.2")")
.,*2..44)13
2.4)2)1 2.2,3**
Shri I. Shan4ar Narayan
Princia' Secretary< -ovt. of
Madhya Pradesh< +ner&y 2ett.
Bhoa' 4"2 ..1
.)55
5514"3
5511,,
55)3.* 55,"42
Shri P.B.9. 3ar>ri
Princia' Secretary
-overn$ent of Maniur<
Maniur Secretariat
I$ha' ),5 ..1
.3*5 22.513 221)*1 222"2,
Shri 7.2. Iyn>in&
Secretary< +ner&y 2eart$ent<
-overn$ent of Me&ha'aya<
Shi''on&
.3"4 22"424 223),) 225,)*
Shri Gau4hu$ GauEe'<
Secretary :Power;
-overn$ent of MiEora$<
.3*, 325"53 34.*)* 322))"
2eart$ent of Power
AiEwa' )," ..1
Shri Banuo @. @a$ir<
7o$$issioner< P32 %
+'ectricity 2eart$ent<
-overn$ent of Na&a'and
Iohi$a ),) ..1
.3). 2).11. 241*54 2214."
Ms. Meena4ashi Anand
7haudhary< 8inancia'
7o$$issioner % Secretary
:Power;<
-overn$ent of
Garyana<7handi&arh
.1)2 )4.1** 54*"2. )452),
Shri Ianver Sha$sher Sin&h<
7hief Secretary< 2eart$ent of
Power< -overn$ent of Gi$acha'
Pradesh<
Shi$'a 1)1..2
.1)) 221,.4 225,41 221145
Shri A>it Iu$ar<
Princia' ecretary<
Power 2eart$ent<
-overn$ent of Fa$$u %
Iash$ir< New Secretariat<
Fa$$u 1*. ..1
.1,1
.1,4
54"2."(54544
):Fa$$u;
45223"(45235
2 :Sri Na&ar;
43.,.2
453**3
54544):Fa$$
u;
452352 :Sri
Na&ar;
Shri N./. Madhavan<
Princia' Secretary<
-overn$ent of Iera'a<
Power 2eart$ent< Secretariat<
1hiruvananthaura$ ",5 ..1
.4)1
32)*.3

.,*4).)*111
4")1)) 32)*.3
Shri A>ay Srivastava<
7o$$!cu$!Secretary<
Power 2eart$ent<
-overn$ent of 1riura<
.3*1 3)511, 353).5
A&arta'a ),, ..1
Shri 2.N. Padhi<
Secretary< 2eart$ent of Power<
-overn$ent of 9rissa<
Bhubaneswar )51 ..1
.")4
53",".
4."".5
53.2.5
4.31)5
41213.

Shri 7.S. #a>an
Secretary< :Mines % +ner&y;<
-overn$ent of #a>asthan<Faiur
3.2 ..1
.141
3*."35
3*.222
511342 3*."35
Shri P.P. Ihare'
Secretary< 2eart$ent of Power<
-overn$ent of Si44i$< -an&to4
6 )3)1.1
.35,2
22244
2251.

22,.*

22,1"
231.3 22,2)
Shri I.P Pandey<
Princia' Secretary<
+ner&y 2eart$ent<
-overn$ent of
Iarnata4a<Sachiva'aya!II<
Ban&a'ore 5". ..1
.*.
22523)3
2.,25"1
*4".224 22".25"
Shri Ani' Iu$ar<
Princia' Secretary :+ner&y;<
-overn$ent of ?ttar Pradesh<
Power 2eart$ent<1.4 Bau
Bhawan
0uc4now 6 22"..1
.522 23)35) 23*)"1 23,32*
Shri Ieshav 2esira>u<
Secretary:+ner&y;< -overn$ent of
?ttarancha' Secretariat< 2ehradun !
24*..1<
.135
)12.""
,*3).43")"
)12.)4 )12.5.
Shri #.#athinasa$y< .44 53"14," "24*3"1 53"14,"
Secretary< 2eart$ent of Power<
-overn$ent of 1a$i' Nadu<
Secretariat 8ort St. -eor&e
Madras ".. ..,
Shri Sudhir Mitta'<
Secretary :Power;
-overn$ent of Pun>ab
I%P 2eart$ent
7handi&arh
.1)2
)42,2.

)435*)
54.",* )435*)
Shri I.I.Ba&chi
Pr. Secretary< Power 2eart$ent< -ovt.
of 3est Ben&a'< 1< I.S. #oy #oad<
7a'cutta ! ).. ..1.
.33 24*12") 24.41"1 2214,"1
Shri /.I. Sin&h
7o$$issioner % Secretary<
2eart$ent of Power< Anda$an
% Nicobar Ad$n<
Port B'air )44 1.1
.31,2 332.5 331*1
Shri Prashant -oya'<
Princia' Secretary :P;<
2eart$ent of Power
7hief Secretariat<
Pondicherry ".5..
.413
33444*

33*)24
254,41 33)5)5
Shri #./. /er$a<
Secretary :Power;
?.1. 0a4shadwee
Iavaratii via 7ochin "*2 555
.4*," "22)* "23*5 "214.
Shri #a$esh 7handra<
Princia' Secretary: Power;<
-overn$ent of N71 of 2e'hi<
/i4as Bhavan< New 2e'hi
.11 33,2131 33*)534 33,2.).
Shri #a4esh Sin&h< .1)2 )42..1 54,..3 )42..)
Adviser to Ad$inistrator %
Secretary :Power;<
?1 of 7handi&arh< 2efence
Bui'din&< Sector ,2<
#oo$ No.412< ?.1. Secretariat
7handi&arh.
54,..5
!ist o8 C5airman; State Electricity oards
S#N Name < Address Code
Telep5one
Fa>
"88ice +es#
1.
Shri F. Parthasarthy
7M2< Andhra Pradesh Power
-eneration 7o$any< /idyut
Soudha< Gyderabad 5.. .4,
.4.
33,11)4
331)"43
3).25)1

331)""3
2.
Shri P.#a$a4ant #eddy<
7M2< Andhra Pradesh Power
1rans$ission 7o$any< /idyut
Soudha< Gyderabad 5.. .4,
.4.
331)"5)
33,"...

332.5"5
3.
Shri #.Gussain
7hair$an< Assa$ State +'ectricity
Board< Bi>u'ee Bhavan< Pa'tan
BaEar< -uwahati!)*1..1
.3"1
54.311
541.**
454,2) 541.,.

4.
Shri N.I.A&&arwa'
7hair$an< Bihar State +'ectricity
Board< /idyut Bhawan< Bai'ey
#oad< Patna *.. ..1
."12
224534
2.5.3"
2*""35 222,"*
5.
Shri -oa' 1iwari
7hair$an< 7hattis&arh State +'ectricity
Board<
2.I. Bhawan #aiur
.))1 244,.2 2*3141 "",..
".
Shri Na'inbhai Bhatt
7hair$an< -u>arat +'ectricity Board<
/udyut Bhawan< #ace 7ourse<
Baroda 3,. ..)
.2"5 33*2,,
33."1)
34.22.

33*1"4
).
Shri. -.I.Bha&at
Mana&in& 2irector< -u>arat Industries
Power 7o$any 0i$ited. Baroda
.2"5 3)31)5 3)..2*
*.
Shri P.I.1ane>at
Mana&in& 2irector< -u>arat State
+'ectricity 7orn.< /udyut Bhawan< #ace
7ourse< /adodara ! 3,. ..)
.2"5
335"15
3551,3!,5
.,*24.3413
3
33**4)
,.
Shri San>ay -uta
Mana&in& 2irector< -u>arat State +ner&y
-eneration 0i$ited< B'oc4 15< 3rd 8'oor<
?dyo& Bhawan< Sector 11< -handina&ar
3*2.11
.2)12
3"3)1
3"3)2
3)3)2
2.33*
.,*24,*.,3
1
3"3)5
1..
Shri Sa$eer Mathur<
M2< Garyana /idyut Prasaran
Ni&a$ 0td< Sha4ti Bhavan< Sector
/I< Panch4u'a 134 1.,
.1)2
5"1,31
5".5),
5"."52
)44.).
5"."4.
5"5)4"
11.
Shri ?$a Shan4er<
2a4shin Garyana Bi>'ee /itran
Ni&a$ 0td.< /idyut Na&ar<
Gissar< Garyana
.1""2 21)24
)"3"3
12.
Shri S.I. Mon&a<
M2< Garyana Power -eneration
7ororation< Panch4u'a
.1)2 5".")2

5".13"
13.
Shri Ianwer Sha$sher Sin&h< Secretary %
7hair$an<
Gi$acha' Pradesh State +'ectricity Board<
/idyut Bhawan<
Shi$'a 1)1..2
.1)) 221,.4 225,41 221145
14.
Shri #a>iv #an>an<
7hair$an<
Fhar4hand State +'ectricity Board<
+n&ineerin& Bui'din&< G+7< 2hurwa<
#anchi 6 *34..4
."51
4.3*.)
4.3*.,
2.4.)3* 4.3),,
15.
Shri S.I. 2as&uta<
7hair$an<
Madhya Pradesh +'ectricity Board< P.9.
BoA No. 34< #a$ur< Faba'ur 4*2 ..*
.)"1
""3251
""15"5
""3*5.
""3*51
""15"5

""1","
1".
Shri /i$a' Bansa'<
7hair$an< Maharashtra State
+'ectricity Board< Pra4ash&ad< 4th
f'oor< Bandra :+ast;
Bo$bay 4.. .51
.22
2.253,3
.,*2.131
)"4
2.4.)3*
2.253,3
1).
Shri B.-. Ihar4on&or<
7hair$an< Me&ha'aya State
+'ectricity Board< Short #ound
#oad< Shi''on& ),3 ..1
.3"4
22"345
22"3")
22"2,4
22"345

222.)4
1*.
Shri P. Patnai4<
7hair$an % M2
-rid 7ororation of 9rissa
/idyut Bhawan Fanat<
Bhubaneswar )51 ..1
.")4
54..,*
4511,"
53.""3 541,.4
1,.
Shri Sudhir Mitta'
7hair$an< Pun>ab State +'ectricity
Board.
1he Ma''< Patia'a 14) ..1
.1)5

212..5
214,2)

)435*)
2..
Shri 2.7. Sa$ant<
7M2< #a>asthan /idyut Prasaran Ni&a$
0td.< Faiur 13)..1
.141 )4.11* 21241,
21.
Shri #.I. -uta<
7M2< #a>asthan #a>ya /idyut ?tadan
Ni&a$ 0td.< /idyut Bhawan< #.7. 2ave
Mar&< Faiur ! 3.2..5
.141 )4.3*1 21*.5. )4."33
22.
Shri 7.S. #an>an<
7M2< #a>asthan State Power
7ororation 0td.< +!1""<
Ludhisthar Mar&< 7!Sche$e< Faiur
13)..1
.141
3*4.55

3*4.))
3*22,*

3*2)5,

3*1*25
23.

Shri /.P. Ba'i&ar< IAS<
7hair$an % M2< Iarnata4a Power
1rans$ission 7ororation 0td.<
/auvery Bhawan< Ban&a'ore 6
5"...,
.*.
2214342
224455"
")*3232
221.)2*
24.
Shri I. Fothira$a'in&a$<
Mana&in& 2irector< Iarnata4a Power
-eneration 7ororation 0td.< Sha4ti
Bhawan< *2< #ace 7ourse #oad< Ban&a'ore
! 5"...1
.*.
22.4153
2255"."
""*"1", 22.2*11
25.

Shri 1.M. Manoharan<
7hair$an< Iera'a State +'ectricity
Board< /idyut Bhawan< Pato$<
1rivandru$ ",5 ..4
.4)1
44*12*
442125
333).4
3334."
44132*

44*24"
2".
Shri I. -nanadesi4an<
7hair$an< 1a$i' Nadu +'ectricity
Board< *.. NPI# #a$aswa$y
Ma'i&ai
Anna Sa'ai<Madras ".. ..2
.44
*5213..
*5223..
"25*.3, *54452*
2).

Shri #.I. Narayan< 7hair$an
?.P. State +'ectricity board< Sha4ti
Bhavan< 14<. Asho4 Mar&< 0uc4now
22" ..1
.522
2*)),2
2*)*2)
2."2." 2*.23)
2111",
2*.
Shri
?P Gydro Power 7ororation<
/i4as 2ee< Station #oad<
0uc4now
.522
23.".4
2*.215
"352)"
2,.
Shri #anbir Sin&h<
7hair$an % M2< ?P /idyut ?tadan
Ni&a$< Sha4ti Bhawan< 0uc4now
.522 2*.2.) 3)"1.1
. 3..
2r.-.2.-auta$
7hair$an< 3est Ben&a' State
+'ectricity Board< Bidyut Bhavan<
Sa't 0a4e B'oc4 No.2F< Sector!II<
7a'cutta ).. .,1
.33
35,1,15
35,2)23
24)2.3"

24.")4.
33)3..2
31.
Shri Fa&dish Sa&ar< IAS
7hair$an< 2e'hi /idyut Board<
Sha4ti Bhawan< Nehru P'ace< New
2e'hi 6 11..1,
.11
"4*4*.2
"4*4*33
"*2213"
"4".,41

"4".,42
"41.*.2
32.
Shri 2.N. Padhi<
7hair$an %
M2<
9rissa Gydro Power 7ororation
0td.< Fanath< Bhubaneswar
)51..1
.")4 542,22
53.2.5
4.31)5
!ist o8 C0DSs o8 Central Po:er Sector ,nits
S#N Name < Address Code
Telep5one
Fa>
"88ice +es#
1.
Sh. 7.P. Fain 7hair$an
% Mana&in& 2irector
Nationa' 1her$a' Power
7ororation<
79#+!*< Scoe 7o$'eA< N+3
2+0GI
.11
243"..44
243"11,,
2".1435)

243"3.5.
2.
Sh. #.P. Sin&h <
7hair$an%Mana&in& 2irector<
Power&rid 7ororation of India
0td.< B!,< Hutab Institutiona'
Area< Iatwaria Sarai<
N+32+0GI
.11
2"5"..)2

2"5"..)5
2"*,..)5
2"5"..54
3.
Sh.A.I.-an&oadhayay <
7hair$an % Mana&in& 2irector<
Nationa' Gydro!+'ectric Power
7ororation 0td.< NGP7 9ffice
7o$'eA< Sector!33<
8A#I2ABA2
.12,
,512,!
22)5,2.
,512,!
2"2)4"33
4.
Shri #.I.Shar$a<
7hairerson % Mana&in&
2irector< #ura' +'ectrification
7ororation< 79#+!4< Scoe
7o$'eA< N+3 2+0GI
.11
243"15"2
243"1*51
2"**)*."
243"",4*
5.
Shri #.Irishna$urthy<
7hair$an % Mana&in& 2irector<
Power 8inance 7ororation 0td.<
7handra'o4 Bui'din&<
3"< Fanath<
N+3 2+0GI!11...1
.11


23315*24
2335"15)

232311.3 23)1)3.*
".
Shri M. 0. -uta<
7hair$an % Mana&in& 2irector<
1ehri Gydro 2eve'o$ent 7orn.
0td.< A!1.< Sec.1< :I#IBG79
Bhawan;< N9I2A!2.13.1
.12. 253".)1 25."*1.
).
Sh.G.I.Shar$a<
7hair$an % Mana&in& 2irector<
SF/N0< Gi$fed Bui'din&<
N+3 SGIM0A ! 1)1..,
.1)) 22).*.4 2224,),
*.
Sh. S.7. Shar$a<
7hair$an % Mana&in& 2irector<
North!+astern +'ectric Power
7ororation 0td.< Broo4'and
7o$ound< 0ower New 7o'ony<
Shi'on& 6),3..3
.3"4
22244*)
222"453
222425,
,.
Sh. #a4esh Nath<

7hair$an <
Bha4ra Beas Mana&e$ent Board
:BBMB;< Madhya Mar&<
Sector!1,!B<
CDANDI2A+D
.1)2 254*542
254,*5)
1..
Sh. #.I.Sin&h<
7hairerson<
2a$odar /a''ey 7ororation
:2/7;< 2/7 1owers< /IP #oad<
7A07?11A!)...54
.33 2355),35
24)5335"
11.
Sh. 1.N. 1ha4ur< 7hair$an %
Mana&in& 2irector<
Power 1radin& 7ororation<
NB77 Bui'din&< 1hird 8'oor<
Bhi4a>i 7a$a P'ace< New 2e'hi
.11 2"431)*3 2"*)14*5
CENT+A! E!ECT+ICIT1 +E2,!AT"+1 C"00ISSI"N
AddressC 7entra' +'ectricity #e&u'atory 7o$$ission< 7ore!3< 5
th
8'oor< S79P+
7o$'eA< )< Institutiona' Area< 0odhi #oad< New 2e'hi 6 11. ..3.
PhoneC ,1!11!243"4*,5
8aAC ,1!11!243"..1. ( 243"..5*
+!$ai'C cerc\cercind.or&
3ebsiteC httC((www.cercind.or&
Me$bersC
1. Sh. A.I.Basu< 7hair$an ! 1e'C 243" ...4
2. Sh. I.N.Sinha< Me$ber ! 1e'C 243" 12*.
3. Sh. Bhanu Bhushan< Me$ber ! 1e'C 243" 125,
4. Sh.A.G.Fun&< Me$ber ! 1e'C 243" 1235