Section 5 in The Orissa Electricity Reform (Transfer of Undertakings, Assets, Liabilities, Proceedings and Personnel) Scheme Rules, 1996
5. Transfer of Undertakings by the State.
(1)The State Government may, from time to time by order to be notified in the Orissa Gazette transfer and vest the Undertakings classified together with such residuary assets, residuary liabilities and residuary proceedings in OHPC or Gridco ("the Transfer") based on the classification under Rule 4.(2)Upon such transfer the Transferee shall be responsible for all contracts, deeds, schemes, bonds, agreements and other instruments of whatever nature to which the Board was a party, subsisting or having effect on the effective date in the same manner as the Board and the State were liable immediately before the effective date and the same shall be in force and effect against or in favour of the Transferee and may be enforced as fully and effectively as if, instead of the Board or the State Government the Transferee had been a party thereto.(3)Subject to the provisions of the Act, the terms and conditions for the transfer of the undertakings or residuary assets, residuary liabilities and residuary proceedings shall be notified by the State Government and in consideration of the transfer to the Transferee as mentioned in Sub-rules (1) and (2) such terms and conditions may provide for cash consideration to the State Government or in lieu thereof cause to issue in favour of the State Government or any nominee of the State Government such shares securities, debentures stocks or any other instrument as the State Government may consider appropriate.
