4. Classification of assets etc., into Undertakings.
(1)The assets, liabilities and proceedings vested in the State in terms of Rule 3 and such other assets liabilities and Proceedings as the State Government consider to be appropriate but excluding those specified in sub-rule (3) of this rule shall stand classified into:(a)Generation Undertakings as set out in Schedule A. and(b)Transmission and Distribution Undertakings as set out in Schedule B.(2)If the assets under sub-rule (1) are subject to security documents or arrangements in favour of third parties for any financial assistance or obligation taken by the Board and the liabilities in respect thereof are to be classified in different Undertakings, the State Government, may by order to be issued for the purpose, provide for the apportionment of the liabilities secured by such properties, assets and rights between the different Undertakings and upon such apportionment, the security shall be applicable to the apportioned liability only.(3)The liabilities specified in Schedule C shall not form a part of the liabilities classified in Generation and transmission and Distribution undertakings in Schedule A or B and they shall be retained by the State Government as residuary liabilities.
