Section 5 in Tamil Nadu Electricity (Reorganisation and Reforms) Transfer Scheme, 2010
5. Transfer of Undertaking by the State.
(1)The Undertakings forming part of Generation & Distribution Undertakings as set out in Schedule - A together with all assets and liabilities vested in the State Government shall stand transferred to and re-vested by the State Government in the "Tamil Nadu Generation and Distribution Corporation Limited" (hereinafter referred to as "TANGEDCO") on and from the First day of November 2010 subject to terms and conditions, of the provisions of the Act and this Scheme.(2)The Undertakings forming part of Transmission Undertakings as set out in Schedule - B together with all assets and liabilities vested in the State Government shall stand transferred to and re-vested by the State Government in the "Tamil Nadu Transmission Corporation Limited" (hereinafter referred to as "TANTRANSCO") on and from the First day of November 2010 subject to terms and conditions, of the provisions of the Act and this Scheme.(3)The Undertakings forming part of Holding Undertakings as set out in Schedule C together with all assets and liabilities till further orders of the State Government shall stand transferred to and re- vested by the State Government in the "TNEB Limited" on and from the First day of November 2010 subject to terms and conditions, of the provisions of the Act and this Scheme.(4)On such transfer and re-vesting of the Undertakings in terms of subclauses (1) to (3) and except as otherwise provided, the respective Transferee, shall be responsible for all functions, contracts, rights, deeds, schemes, bonds, agreements and other instruments of whatever nature relating to the respective Undertakings transferred to it to which the Boatti was a party, subsisting or having effect on the date of the transfer, in the same manner as the Board was liable immediately before the date of the transfer, and the same shall be in force and effective against or in favour of the respective Transferee and may be enforced effectively as if the respective Transferee had been a party thereto instead of the Board.(5)As consideration for the transfer and re-vesting of the Undertakings transferred as specified in this Scheme, TANGEDCO and TANTRANSCO shall have the financial and opening balance sheet and shall issue shares and instruments in favour of TNEB Limited, as the State Government may notify by order (as specified in Part-II of Schedules A and B to this Scheme).(6)As consideration for the transfer and vesting of the Undertakings transferred as specified in this Scheme, TNEB Limited shall have the financial and opening balance sheet and shall issue shares and instruments in favour of the State Government, as the State Government may notify by order (as specified in Part-II of Schedule C to this Scheme).(7)The transfer and re-vesting of the Undertakings in the Transferees in terms of this Scheme shall take effect immediately on the First day of November 2010 for the purpose notwithstanding that the value of such Undertaking transferred have not been finally determined but have been determined only on provisional basis and is subject to updating, finalization and adjustments at a later date or in terms of clause 11. The Transferee shall continue to function as an agent of the Board till further orders of the State Government.(8)The State Government may, by an order, to be issued for the purpose amend, vary, modify, add, delete or otherwise change the terms and conditions specified in the Schedules at any time during the provisional period mentioned in clause 9 of this Scheme.(9)The transfer value of the fixed Assets forming part of Schedules A, B and C of the respective Transferees have been done at book values excluding the land which was revalued based on the guideline value resulting into Revaluation Reserve of Rs. 6868.70 Crores adjusted against the accumulated loss of the Board. However, within the provisional period specified in clause 9 of this Scheme, the final transfer value of the Fixed Assets shall be determined keeping in view the revenue potential of such assets as per section 131 of the Act and shall be determined and effected as if done before the First day of November 2010.
