(2)Nothing in this Act shall be deemed to affect the terms of any license which was granted, or of any agreement which was made, by or with the sanction of the Government for the supply or use of electricity before the commencement of this Act.THE SCHEDULEPROVISIONS TO BE DEEMED TO BE INCORPORATED WITH, AND TO FORM PART OF, EVERY LICENSE GRANTED UNDER PART II, SO FAR AS NOT ADDED TO, VARIED OR EXCEPTED BY THE LICENSE[See section 3, sub-section (2), clause (f)]Security and accountsI. Security for execution of works of licensee not being local authority.-Where the licensee is not a local authority, the following provisions as to giving security shall apply, namely :(a)The licensee shall, within the period fixed in that behalf by his license or any longer period which the State Government may substitute therefor by order under [section 4-A, sub-section (1)], of the Indian Electricity Act, 1910, before exercising any of the powers by the license conferred on him in relation to the execution of works, show, to the satisfaction of the State Government, that he is in a position fully and efficiently to discharge the duties and obligations imposed upon him by the license throughout the area of supply.(b)The licensee shall also, within the period fixed in that behalf by his license or any longer period which the State Government may substitute therefor by order under [section 4-A, sub-section (1)] [Substituted by Act 32 of 1959, Section 40, for "Section 4, sub-Section (3), clause (b)".], of the-Indian Electricity Act, 1910, and before exercising any of the powers conferred on him in relation to the execution of works, deposit or secure to the satisfaction of the State Government such sum (if any) as may be fixed by the license or, if not so fixed, by the State Government.(c)The said sum deposited or secured by the licensee under the provisions of this clause shall be repaid or released to him on the completion of the works or at such earlier date or dates and by such instalments, as may be approved by the State Government:[Provided that if the works referred to in clause IV are not executed to the satisfaction of the State Government within the period specified in that clause, that Government may by order direct that the whole or any part of the sum so deposited or secured shall be forfeited to it.] [Added by Act 32 of 1959, Section 40]II. Audit of accounts of licensee not being local authority.-Where the licensee is not a local authority, the following provisions as to the audit of accounts shall apply, namely:(a)The annual statement of accounts of the undertaking shall, before being rendered under section 11 of the Indian Electricity Act, 1910, be examined and audited by such person as the State Government may appoint or approve in this behalf, and the remuneration of the auditor shall he such as the State Government may direct, and his remuneration and all expenses incurred by him in or about the execution of his duties, to such an amount as the State Government shall approve, shall he paid by the licensee on demand.(b)The licensee shall afford to the auditor, his clerks and assistants, access to all such books and documents relating to the undertaking as are necessary for the purposes of the audit, and shall, when required, furnish to him and them all vouchers and information including technical data and statements of energy generated and sold)] requisite for that purpose, and afford to him and them all facilities for the proper execution of his and their duty.(c)The audit shall be made and conducted in such manner as the State Government may direct.(d)Any report made by the auditor, or such portion thereof as the State Government may direct, shall be appended to the annual statement of accounts of the licensee, and shall thenceforth form part thereof.(e)Notwithstanding the foregoing provisions of this clause, the State Government may, if it thinks fit, accept the examination and audit of an auditor appointed by the licensee.III. Separate accounts.-The licensee all, unless the State Government otherwise directs, at all times keep the accounts of the [undertaking relating to the generation, supply or distribution of energy] [Substituted by Act 32 of 1959, Section 40, for "capital employed for the purposes of the undertaking"] distinct from the accounts kept by him of any other undertaking or business.Compulsory works and supplyIV. Execution of work after commencement of license.-The licensee shall, within a period of three years after the commencement of the license, execute to the satisfaction of the State Government all such works as may be specified in the license in this behalf or, if not so specified, as the State Government may, by order in writing issued within six months of the date of the commencement of the license, direct.V. Provisions as to laying down of further distributing mains.-(1) Where, after the expiration two years and six months from the commencement of the license, a requisition is made [two or more] [Substituted by Act 32 of 1959, Section 40, for "six or more] owners or occupiers of premises in or upon any street or part of a street within the area of supply or by the State Government or a local authority charged with the public lighting thereof, requiring the licensee to provide distributing mains throughout such street or part thereof, the licensee shall comply within six months with the requisition, unless,--(a)where it is made by such owners or occupiers as aforesaid, the owners or occupiers making it do not, within fourteen clear days after the service on them ' the licensee of a notice in writing in this behalf, tender to the licensee a written contract [in a form approved by the State Government] [Substituted by Act 32 of 1959, Section 40, for certain words] duly executed and with sufficient security binding themselves to take, or guaranteeing that there shall been, a supply of energy for not less than two years to such amount as will in the aggregate [assure to the licensee at the current rates charged by him, an annual revenue not exceeding fifteen per centum of the cost of the distributing mains (not including transformers and other sub-section equipment) required to comply with the requisition] [Substituted by Act 32 of 1959, Section 40, for certain words]; or(b)where it is made by the State Government or a local authority, the State Government or local authority, as the case may be, does not, within the like period, tender a like contract binding itself to take a supply of energy for not less than seven years for the public lamps in such streets or part thereof.
