Union of India - Act
The Electricity (Supply) Act, 1948
UNION OF INDIA
India
India
The Electricity (Supply) Act, 1948
Act 54 of 1948
- Published on 10 September 1948
- Commenced on 10 September 1948
- [This is the version of this document from 10 September 1948.]
- [Note: The original publication document is not available and this content could not be verified.]
9.
/475Statement of Objects and Reasons.-The co-ordinated development of electricity in India on a regional basis is a matter of increasingly urgent importance for post-war reconstruction and development. The absence of co-ordinated system, in which generation is concentrated in the most efficient units and bulk supply of energy centralised under the direction and control of one authority is one of the factors that impedes the healthy and economical growth of electrical development in this country. Besides, it is becoming more and more apparent that if the benefits of electricity are to be extended to semi-urban and rural areas in the most efficient and economical manner consistent with the needs of an entire region, the area of development must transcend the geographical limits of a Municipality, a Cantonment Board or a Notified Area Committee, as the case maybe. It 17 as, therefore, become necessary that the appropriate Governments should be vested with the necessary legislative powers to link together under one control electrical development in contiguous areas by the establishment of what is generally known as the "Grid-System". In the circumstances of this country such a system need not necessarily involve inter-connection throughout the length and breadth of a Province; regional co-ordination inclusive of some measure of inter-connection may be all that is needed. An essential pre-requisite is, however, the acquisition of necessary legislative power not only to facilitate the establishment of this system in newly licensed areas but also to control the operations of existing licensees so as to secure fully co-ordinated development.Government feel that it is not possible to legislate for this purpose within the frame-work of the Indian Electricity Act, 1910, which was conceived for a very different purpose. In their view what is needed is specific legislation; on the broad lines of the Electricity (Supply) Act, 1926, in force in the United Kingdom, which will enable Provincial Governments to set up suitable organisations to work out "Grid Schemes" within the territorial limits of the Provinces. Although executive power under the proposed Bill will necessarily vest in the Provinces, two considerations indicate the necessity for Central legislation:-(i) the need for uniformity in the organisation and development of the "Grid System",and(ii) the necessity for the constitution of semi-autonomous bodies like Electricity Boards to administer the "Grid Systems". In the view of Government it is bodies like these which are likely to be the most suitable organisations for working the "Grid Systems" on quasi-commercial lines. Such Boards cannot, however, be set up by Provincial Governments under the existing Constitutional Act as they would be in the nature of trading corporations within the meaning of Entry 33 of the Federal Legislative List...Amendment Act 101 of 1956-Objects and Reasons.-The object of this Bill is to remove anomalies and difficulties which have come to notice in the working of the Electricity (Supply) Act since its enactment in 1948.2. The amendments proposed in the Bill have been under prolonged deliberation and are largely the result of decisions taken at the inter-State conference held in February this year at which the representatives of the electricity supply industry were also heard.3. To ensure the co-ordination of development policies of the State Electricity Boards with those of Government Departments, it is necessary to vest certain supervisory powers in the State Governments. Accordingly, it is proposed to empower the State Governments to exercise control over the activities of the Boards in matters of policy and to require the Boards to consult State Governments in the preparation of schemes estimated to cost over Rs. 10 lakhs. Because of the interest of State Governments in the financial policies of local authorities, it is proposed also to subject to the approval of the State Governments the directions that may be given by the Boards to local authority licensees in connection with their amortisation and tariff policies.4. When the principal Act was passed in 1948, the Reserve Bank rate was 3 per cent, and the standard rate of 'reasonable return' for electricity supply licensees was fixed at 5 per cent, that is, two per cent over the Bank rate. The Bank rate rose to 3 ' /z per cent in 1951 and, therefore, an increase in the standard rate by' /Z per cent is justified. It is proposed to link the standard rate with the Bank rate at 2 per cent above the latter to enable its automatic adjustment with the money market.5. The working of the Act has shown that some of the provisions of the Sixth Schedule to the Act enable the licensees to earn return in excess of that intended under the scheme of the Schedule. These entitle the licensees to earn interest as well as 'reasonable return' on assets created out of debenture and loan capital and from amounts invested out of accruals in the depreciation reserved outside their business of electricity supply. The licensees are also able to earn return on capital assets acquired from consumers' money such as consumers' security deposits and amounts invested in business out of Tariffs and Dividends Control Reserve. The licensees can also charge the pay of a managing director or manager as an item of business expense in addition to the remuneration and office allowance paid to the managing agents. It is proposed to make suitable provisions to close these loopholes.6. It is further proposed to prevent licensees from paying dividends on share capital in excess of 3 per cent or distributing other profits so long as any arrears of depreciation or previous losses remain to be written off in their books and to require them to reduce their rates when their clear profits exceed the amount of 'reasonable return' by 15 per cent as against the existing limit of 30 per cent.7. It is also proposed to provide for the electricity supply industry to avail of the benefits of the Development Rebate permitted under the provisions of section 8 of the Finance Act, 1955, by allowing the creation of the Development Reserve. The accumulations in this Reserve will be utilised for the development of the undertakings. Licensees, however, are not to be permitted to earn 'reasonable return' on the assets financed from this reserve.8. Under the existing provisions of the Act interest-free loans granted to the Board by the State Government are repayable out of its revenues. With a view to reducing the financial liabilities of the Board, such loans are proposed to be treated on the same footing as interest-bearing loans advanced by the State Government and they will not be repayable out of the revenues of the Board. With the same object, provision is proposed to be made to enable the Board to repay the loans borrowed from sources other than the State Government out of the accumulations in the depreciation reserve instead of its revenues.9. With a view to tightening control over the financial operations of the Boards, it is proposed to subject their accounts to the audit of the Comptroller and Auditor-General of India.10. The Bill also provides for some consequential and minor amendments and clarifications.Amendment Act 30 of 1966-Objects and Reasons.-The object of this Bill is to remove certain anomalies and difficulties which have come to notice in the working of the Electricity (Supply) Act, 1948. Certain changes are being made in order to facilitate raising of capital required for development. Few amendments are also proposed to tighten the control over the financial operations of private licensees.2. The changes that are proposed to be made in the Sixth Schedule to the Act in regard to the measures for regulating the financial operations of licensees are as follows:-(i) In the scheme of the said Schedule at present there is a distinction between the loans obtained by the licensees from Electricity Boards and from other sources. It is proposed to dispense with this distinction by applying the same conditions as are applicable to the borrowings from the Board, to loans borrowed from organisations approved by the State Governments.(ii) It is being clarified that the intangible assets will include expenses on account of new capital issue.(iii) It is provided in the Act that a licensee shall not be deemed to have failed to adjust his rates if the clear profit in any year of account has not exceeded the amount of reasonable return by 15 per cent of the amount of reasonable return. This cushion of 15 per cent has been found to be inadequate and is, therefore, proposed to be raised to 20 per cent without giving the licensee any additional benefit.(iv) It is proposed to provide that the licensees, while fixing the charges for supply of electricity, will be competent to levy minimum charges. This is considered necessary, particularly in the case of industrial consumers, to ensure that the consumer pays at least such monthly charges as would cover the cost on account of arrangements made by the licensee to give the supply.(v) It is now provided that on the purchase of an undertaking of the licensee by the Board or State Government, compensation due to the employees of the licensee under any Act, may be paid out of the Contingencies Reserve.(vi) At present, clear profit of a licensee has been linked with the Reserve Bank rate ruling at the beginning of the year of account through the mechanism of standard rate and reasonable return. Any increase in the Bank rate has a direct effect on the reasonable return which the licensees can earn. If the Bank rate increases, it is justifiable to allow the licensees to earn reasonable return based on increased Bank rate on new investments. But it is not desirable to allow them to earn unduly large return due to the rise in the Bank rate on past investments at the cost of the consumers. It is, therefore, proposed to amend the Act to ensure that return on any block of capital invested in any year of account is limited to the rate of 2 per cent above the Bank rate prevailing at the beginning of that year of account.(vii) With a view to tightening control over the financial operations of the private licensees, it is being provided where an undertaking is purchased by the Board or the State Government, the amount standing to the credit of the Tariffs and Dividends Control, the Contingencies, and the Development Reserves shall be deducted from the price payable to the licensee. It is also being provided that the annual contributions to the Contingencies Reserve shall be invested in securities within a period of six months of the close of the relevant year. Licensees are at present permitted to set apart from revenue, contributions to the provident fund, staff pension, gratuity and apprentice and other training schemes. It is proposed to provide that contributions to the provident fund, staff pension and gratuity will be made in accordance with any scheme approved by the State Government.(viii) It is proposed to empower the Central Government to allow, in computing the reasonable return, such amount as may be considered necessary having regard to the prevailing taxation policy.It is proposed to bring into force the new provisions relating to the financial operations of the licensees retrospectively with effect from the 1st day of April, 1965.3. Under the existing provisions of the Act, Members of Parliament or of the State Legislatures and members of local authorities have to wait for a period of 12 months after they cease to be such members before becoming eligible for appointment as members of the State Electricity Boards. Some of the State Governments have, in view of this provision, been complaining about the difficulty in finding suitable personnel for manning the Boards on full-time basis. With a view, therefore, to enlarging the field of choice of membership for the Boards, it is proposed to amend the Act to permit appointment of Members of Parliament, etc., as members of the Board immediately after they cease to be such members.4. The Bill also makes the following amendments in certain provisions of the Act which relate to the activities of the Electricity Boards:-(i) In accordance with the procedure laid down in the Act in respect of sanctioning of its schemes by the State Electricity Board, all schemes are required to be published in the Official Gazette and local newspapers twice; first as draft schemes, and again as sanctioned schemes. This procedure has been found to be wasteful and unnecessary in the case of small schemes. Provision has, therefore, been made in the Bill to provide that schemes costing up to rupees 25 lakhs need not be published at all. It is also proposed to amend the relevant provisions of the Act to provide that the schemes costing between rupees 25 lakhs and rupees 1 crore each may be published only once after they are sanctioned; the schemes costing more than rupees 1 crore will continue to be published twice as at present.(ii) The Electricity Boards, as soon as they were established in the various States, took over the business of generation, supply and distribution of electricity from the State Electricity Departments, along with their assets and liabilities. The period of limitation, under the Indian Limitation Act, 1908, applicable in the case of the Boards is only three years, whereas it was 60 years in the case of the State Government Electricity Departments. Because of the longer period of limitation applicable in their case, the Government Electricity Departments did not find it necessary to initiate legal proceedings for recovery of certain dues from the consumers even though they had not been paid for periods longer than three years. Such cases stood time-barred as soon as the business was taken over by the Boards, and resulted in substantial financial loss to the Board. In view of this difficulty, it is proposed to extend the period of limitation applicable to the State Electricity Boards under the Indian Limitation Act, 1908, so that the time-barred dues, as explained above, can be recovered by them.(iii) It is proposed to provide that the revenue of the Board after meeting the operating, maintenance and management expenses and other liabilities regarding interest, depreciation, etc., as laid down in clauses (i) and (ix) of section 67, shall be credited to a fund to be utilised for purpose beneficial to electrical development in the State and for repayment of loans advanced to the Board by the State Government. It has also been provided that where the loans are not required to be repaid, contributions to the aforesaid fund will be cut down to one-half, and the remaining one-half shall, as at present, be credited to the Consolidated Fund of the State.(iv) The maximum accumulation permitted in the general reserve of the Boards is 8 per centum of the cost of the fixed assets. With a view to providing larger internal finance, the aforesaid ceiling is proposed to be raised to 15 per centum.(v) Contributions to the Depreciation Reserve of the Board are, at present, required to be made on the basis of the compound interest method which involves complicated calculations and accounting. It is proposed to replace this procedure of computing depreciation by the simpler straight-line method.(vi) It has recently been held by the Bombay High Court that section 49 of the Act does not permit the framing of a uniform tariff with a view to helping consumers in sparse areas by substantially overcharging the consumers in compact areas. In the interest of power development in the country, the general policy is towards adoption of uniform rates throughout the State for each class of service or purpose. But at the same time there may be need for divergent rates in some areas, because of certain special circumstances. The Act is, therefore, proposed to be given retrospective effect in order to remove the legal lacunae, if any, in the action taken by various Boards to adopt uniform tariff in the past.Amendment Act 115 of 1976-Objects and Reasons.-The country experienced serious power shortages during the last few years affecting the overall economy. A study in depth revealed that it was necessary to restructure and reorganise the electricity supply industry. The Electricity (Supply) Act, 1948, forms the basis for the organisational structure of the electricity supply industry in the country. It was, therefore, considered necessary to amend certain provisions of that Act and the Electricity (Supply) Amendment Bill, 1976, was introduced in the Rajya Sabha mainly to achieve the following objectives.2. It was proposed to enlarge the scope and functions of the Central Electricity Authority in the interest of overall power development and to strengthen the Central Electricity Authority to undertake much larger responsibilities in evolving a national power policy, preparation of perspective and rolling plans, assisting in the timely completion of the power projects, maximising output from the existing power plants, developing a national grid and initiating programmes for research, development and training of personnel, etc.3. With a view to develop expertise in the construction and operation of power generating stations, it was considered necessary to provide for creation of Generating Companies both by the Centre and the States mainly for power generation. Provisions were, therefore, proposed to be made in the Act for the establishment of Generating Companies by the Central and State Governments, individually or jointly, which would be responsible for the construction and operation of power stations, as well as for the allocation of functions and duties in relation to the generation and supply of electricity between the Generating Companies and the State Electricity Boards.4. Certain modifications also were proposed to be made as to the existing procedure relating to the preparation and sanctioning of schemes for the establishment, and the acquisition of generating stations, tie-lines, sub-stations or transmission lines. Itwas proposed to provide that every scheme prepared by a State Electricity Board or Generating Company and estimated to involve a capital expenditure exceeding one crore of rupees shall be submitted to the Central Electricity Authority for its concurrence so that the scheme may conform to the national power policy evolved by the Authority.5. Since the Bill was not passed before both the Houses of Parliament were prorogued and as the matter was of great urgency, an Ordinance, namely, the Electricity (Supply) Amendment Ordinance, 1976, was promulgated for the same purpose. The Bill seeks to replace the said Ordinance.AmendmentAct23 of 1978-Objects and Reasons.-In order to ensure that the Electricity Boards are able to function on sound commercial principles, the financial provisions of the Electricity (Supply) Act, 1948, are proposed to be amended by the Bill. The main changes proposed to be made in that Act by the Bill are the following.2. With a view to make the Electricity Boards financially viable, it is proposed that a State Government may provide funds to the State Electricity Board in the form of equity, if the State Government so desires. This is necessary because the interest liability devolving on the State Electricity Boards makes it difficult for them to present a picture of financial stability. For this purpose, a new section 12-A is proposed to be inserted in the Act by clause 4 of the Bill.3. Section 59 of the Electricity (Supply) Act, 1948 is proposed to be amended by clause 8 of the Bill to give a positive direction to the Electricity Boards that after meeting all their expenses, there should be provision for surplus for contribution towards immediate investment needs. A similar amendment is also proposed to be made in regard to the Generating Companies by inserting a new sub-section (3-A) in section 75-A by clause 18 of the Bill.4. A new section 66-A is proposed to be inserted in the Electricity (Supply) Act, 1948 by clause 13 of the Bill so as to enable the State Government to convert any loan advanced by it to the State Electricity Board into share capital.5. The amount of capital provided by a State Government under section 12-A (3) or that capital together with the amount converted into capital under section 66-A should not exceed the aggregate of the outstanding loans of the Electricity Board.6. Clause 14 of the Bill seeks to amend section 67 of the Act to re-arrange the priorities for distribution of the revenues of the State Electricity Boards after meeting the operation, maintenance and management expenses and the liabilities, if in any year the revenue receipts are not adequate to enable compliance with the requirements of section 59. This is being done to ensure that the Boards discharge their liability towards interest on loans from financial institutions as well as repayment of principal amount before the operating surplus is appropriated towards depreciation and general reserve.7. Section 68 of the Act is proposed to be amended by clause 15 of the Bill to provide that the method of calculating depreciation should be in accordance with the principles laid down by the Central Government in consultation with the Central Electricity Authority. A similar provision is proposed to be made in regard to licensees by the amendment of the Sixth Schedule by clause 23 (2) of the Bill.Amendment Act 16 of 1983-Objects and Reasons.-The Electricity (Supply) Act, 1948 provides the statutory basis for the functioning of State Electricity Boards and lays down the basic framework for the constitution, functions, financial performance and accounts of State Electricity Boards. The financial provisions contained in the Act with respect of the Boards were last amended in 1978 with a view to ensuring that Electricity Boards are able to function on sound commercial principles. Experience since then has shown the need for further changes for achieving this object.2. Though section 59 of the Act, as amended in 1978, casts an obligation on the State Governments to specify the surplus to be earned by the State Electricity Boards, no State Government has so far specified the quantum of such surplus. At present there is no uniformity in the manner of classification and presentation of accounts of the Boards and this renders inter-Board comparison of financial performance difficult. It is also considered necessary to re-arrange the priorities with regard to distribution of revenues of the Boards. It is, therefore, proposed to amend the Act-(a) to provide that each Board shall have a surplus which shall not be less than three per cent, or such higher percentage as the State Government may specify, of the value of the fixed assets of the Board in service at the beginning of the year;(b) to re-arrange the priorities for distribution of revenues of the Boards;(c) to bring the financial reporting system of the Boards in line with commercial accounting practice; and(d) to empower, with a view to securing uniformity in the manner of classification and presentation of accounts, the Central Government to prescribe the forms in which the accounts of the Boards and other records in relation thereto may be maintained.Amendment Act50 of 1991-Objects and Reasons.-The Indian Electricity Act, 1910 deals with the supply and use of electrical energy and the rights and obligations of the licensees. The Electricity (Supply) Act, 1948 deals with the statutory powers and functions of the Central Electricity Authority, State Electricity Boards and Generating Companies.2. It is proposed to widen the scope of private sector participation in power generation, supply and distribution by suitably amending the aforesaid Acts. The main amendments are as follows,(a) Section 6 of the Indian Electricity Act, 1910 which deals with the period of license is sought to be amended to enhance the said period of license to 30 years followed by subsequent extensions for 20 years at time. This will ensure reasonable stability in the operation of the license.(b) Section 2 of the Electricity (Supply) Act, 1948 (hereinafter referred to as the said Act), which defines various expressions, is proposed to be amended to give effect to certain changes in the definitions and also to define certain new expressions. Clause (4-A) is proposed to be substituted to remove the exclusion of private sector from the definition of "Generating Company", as it permits only the companies formed by the Central Government or by any State Government or jointly by the Central Government and one or more State Governments.(c) Section 15-A of the said Act which deals with the formation, objects, etc., of Generating Companies is proposed to be amended so as to provide for the establishment of Generating Companies in the private sector as well as in the joint sector.(d) Section 29 of the said Act which deals with the submission of schemes involving capital expenditure exceeding rupees five crores to the Central Electricity Authority is proposed to be amended in the interest of flexibility, keeping in view the escalation in the cost of projects and to provide for revision from time to time of the prescribed limit of project cost requiring such clearance.(e) A new section 43-A is proposed to be inserted to the said Act to provide for the terms and conditions and tariff for sale of electricity by the Generating Companies.(f) Section 55 of the said Act which provides for the licensees' compliance with the Board's directions is proposed to be amended to ensure that the licensees as well as Generating Companies shall comply with the directions issued by the designated coordinating agencies in the matter of generation and supply of power.(g) Paragraph XVII (10)(b) of Schedule VI to the said Act is proposed to be amended to raise the standard rate from the existing level of 2 per cent over the Reserve Bank of India rate to 5 per cent over the Reserve Bank of India rate to motivate equity investment in the power projects set up by licensee companies.[10th September, 1948]An Act to provide for the rationalisation of the production and supply of electricity, and generally for taking measures conducive to [electrical development] [ Substituted by A.O. 1950, for " the electrical development of the Provinces of India" .].Whereas it is expedient to provide for the rationalisation of the production and supply of electricity, for taking measures conducive to [electrical development] [Substituted by A.O. 1950, for " the electrical development of the Provinces of India" . ] and for all matters incidental thereto;It is hereby enacted as follows:-| The Act has been extended to the new Provinces and Merged States by the Merged States (Laws) Act, 1949 and to the States of Manipur, Tripura and Vindhya Pradesh by the Union Territories (Laws) Act, 1950. The Act has been extended to Dadra and Nagar Haveli by Regn. 6 of 1963, Section 2 and Sch. I (w.e.f. 1.7.1965). |
Chapter I
Introductory
1. Short title, extent and commencement .-(1) This Act may be called The Electricity (Supply) Act, 1948.
2. Interpretation .-In this Act, unless there is anything repugnant in the subject or context,-
Chapter II
The Central Electricity Authority
3. Constitution of the Central Electricity Authority .-(1) The Central Government shall constitute a body called the Central Electricity Authority generally to exercise such functions and perform such duties under the Act and in such manner as the Central Government may prescribe or direct, and in particular to-
(i)develop a sound, adequate and uniform national power policy, [formulate short-term and perspective plans for power development and co-ordinate the activities of the planning agencies] in relation to the control and utilisation of national power resources;(ii)act as arbitrators in matters arising between the State Government or the Board and a licensee or other person as provided in this Act;(iii)[ collect and record the data concerning the generation, distribution and utilisation of power and carry out studies relating to cost, efficiency, losses, benefits and such like matters;] [ Substituted by Act 115 of 1976, Section 4, for Clause (iii) (w.e.f. 8.10.1976).](iv)make public from time to time information secured under this Act and to provide for the publication of reports and investigations;(v)[ advise any State Government, Board, Generating Company or other agency engaged in the generation or supply of electricity on such matters as will enable such Government, Board, Generating Company or agency to operate and maintain the power system, under its ownership or control, in an improved manner and, where necessary, in co-ordination with any other Government, Board, Generating Company or other agency owning or having the control of another power system; [ Inserted by Act 115 of 1976, Section 4 (w.r.e.f. 8.10.1976).](vi)promote and assist in the timely completion of schemes sanctioned under Chapter V;(vii)make arrangements for advancing the skill of persons in the generation and supply of electricity;(viii)carry out, or make arrangements for, any investigation for the purpose of generating or transmitting electricity;(ix)promote research in matter affecting the generation, transmission and supply of electricity;(x)advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the generation, distribution and utilisation of electricity; and(xi)discharge such other functions as may be entrusted to it by or under any other law.]4. Power to require accounts, statistics and returns .-It shall be the duty of each [State Electricity Board, Generating Company,] State Government Electricity Department or other licensee or person supplying electricity for public or private purposes, or generating electricity for its or his own use [or consuming electricity ] [ Inserted by Act 115 of 1976, Section 6 (w.r.e.f. 8.10.1976).]to furnish to the Authority such accounts, statistics [, returns or other information] [ Substituted by Act 115 of 1976, Section 5, for " State Electricity Board" and " and returns" , respectively (w.r.e.f. 8.10.1976).] relating to the generation, supply and use of electricity as it may require and at such times and in such form and manner as it may direct.
[4-A. Directions by Central Government to the Authority.-(1) In the discharge of its functions, the Authority shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.4.
-B. Power of Central Government to make rules .-(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.4.
-C. Power of Authority to make regulations .- [(1)][The Authority may [, by notification in the Official Gazette,] [Inserted by Act 115 of 1976, Section 6 (w.r.e.f. 8.10.1976). ][make regulations, not inconsistent with the provisions of this Act and the rules made by the Central Government thereunder, to provide for all or any of the following matters, namely:-(a)summoning and holding of meetings of the Authority, the times and places at which such meetings shall be held, the conduct of business thereat and the number of members required to constitute a quorum;(b)any other matter arising out of the functions of the Authority under this Act for which is it is necessary or expedient to make regulations.Chapter III
[STATE ELECTRICITY BOARDS, GENERATING COMPANIES, STATE ELECTRICITY CONSULTATIVE COUNCILS AND LOCAL ADVISORY COMMITTEES] [ Substituted by Act 115 of 1976, Section 7, for " STATE ELECTRICITY BOARDS" (w.r.e.f. 8.10.1976).]
5. Constitution and composition of the State Electricity Boards .-(1) The State Government shall, as soon as may be after the issue of the notification under sub-section (4) of section 1, constitute by notification in the Official Gazette a State Electricity Board under such name as shall be specified in the notification.
6. Inter-State agreement to extend Board's jurisdiction to another State .-(1) Subject to the provisions of this section, the Government of any State may, after it has issued a notification under sub-section (4) of section 1, in lieu of constituting a Board under section 5 enter into an agreement with the Government of a contiguous State to provide that the Board constituted for the latter State shall exercise the functions of a Board under this Act in the former State.
7. Effect of inter-State agreement .-Where an agreement is entered into under section 6, the participating State Governments shall, by notification in the Official Gazette, declare a date on which the agreement shall come into force, and on and after that date-
8. [ Term of office and conditions for re-appointment of members of the Board
.-The Chairman and other members of the Board shall hold office for such period, and shall be eligible for re-appointment under such conditions, as may be prescribed.] [ Substituted by Act 101 of 1956, Section 4, for sub-Section (4) (w.e.f. 30.12.1956).]9. Members not to hold interest in certain concerns .-(1) A member of the Board shall, prior to his appointment, give to the State Government intimation of, and shall, before taking charge of his office, sell or divest himself of, any interest which he may have for his own benefit whether in his own name or otherwise, in any firm or company carrying on the business of supplying electricity or any rule for the generation of electricity, or of the manufacture, sale or hire of machinery, plant, equipment, apparatus or fittings for the generation, transmission, distribution or use of electricity, or any interest in the managing agency or shares or securities of any such company; and it shall not be lawful for a member of the Board, so long as he holds office, to acquire or purchase any such interest in any such firm or company and if he, under any will or by succession or gift becomes entitled for his own benefit to any such interest, he shall sell the same within three months after becoming so entitled thereto; and he shall also, within three months, sever any connection he may have and cease to have any interest, direct or indirect, in any such concern.
10. Removal or suspension of members .- [(1)] The State Government may suspend from office for such period as it thinks fit or remove from office any member of the Board who-
(a)is found to be a lunatic or becomes of unsound mind; or(b)is adjudged insolvent; or(c)fails to comply with the provisions of section 9; or(d)becomes or seeks to become a member of [Parliament] [ Substituted by A.O. 1950, for " the Central" .] or any State Legislature or any local authority; or(e)[ in the opinion of the State Government- [ Substituted by Act 101 of 1956, Section 5, for Clause (e) (w.e.f. 30.12.1956).](i)has refused to act; or(ii)has become incapable of acting; or(iii)has so abused his position as a member as to render his continuance on the Board detrimental to the interests of the general public; or(iv)is otherwise unfit to continue as a member; or](f)is convicted of an offence involving moral turpitude.11. Temporary absence of members .-If the Chairman or any other member of the Board is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment, the State Government may appoint another person to officiate for him and carry out his functions under this Act or any rule or regulation made thereunder.
12. Incorporation of Board .-The Board shall be a body corporate by the name notified under sub-section (1) of section 5, having perpetual succession and a common seal, with power to acquire and hold property both movable and immovable, and shall by the said name sue and be sued.
[12-A. Board may have capital structure.-(1) The State Government may, if it considers expedient so to do, by notification in the Official Gazette, direct that the Board shall, with effect from such date as may be specified in the notification, be a body corporate with such capital, not exceeding ten crores of rupees, as the State Government may specify from time to time.13. Authentication of orders and other instruments of the Board .-All orders and decisions of the Board shall be authenticated by the signature of the Chairman or any other member authorised by the Board in this behalf, and all other instruments issued by the Board shall be authenticated by the signature of such member or officer of the Board as may in like manner be authorised in this behalf.
14. Meetings of the Board .-(1) The Board shall hold ordinary meetings at such intervals as may be provided in the regulations; and a meeting may be convened by the Chairman at any other time for the transaction of urgent business.
15. Appointment of staff .-The Board may appoint a Secretary and such other officers and [employees] as may be required to enable to Board to carry out its functions under this Act:
[Provided that the appointment of the Secretary shall be subject to the approval of the State Government.] [ Inserted by Act 101 of 1956, Section 7 (w.e.f. 30.12.1956).][15-A. [* * *] Objects, jurisdiction, etc., of Generating Companies.- [* * *] [ Sub-Ss. (1), (4), (6) and (7) omitted by Act 50 of 1991, Section 4 (w.e.f. 15.10.1991).][2) The objects of a Generating Company shall include-(a)establishment, operation and maintenance of generating stations and tie-lines, sub-stations and main transmission lines connected therewith;(b)operation and maintenance of such generating stations, tie-lines, sub-stations and main transmission lines as are assigned to it by the Government or Governments.16. State Electricity Consultative Council .-(1) The State Government shall constitute a [State Electricity Consultative Council] for the State, and in cases to which sections 6 and 7 apply, the State Governments concerned shall constitute such one or more [State Electricity Consultative Council] [Substituted by Act 101 of 1956, Section 8, for " State Electricity Council" (w.e.f. 30.12.1956). ] or Councils and for such areas as they may by agreement determine.
17. Local Advisory Committee. -(1) The State Government may from time to time constitute for such area as it may determine Local Advisory Committees, consisting of such number of persons as it may think fit in each case and on such terms and conditions as may be prescribed.
Chapter IV
Powers And Duties Of [State Electricity Boards And Generating Companies]
18. [ General duties of the Board
.-Subject to the provisions of this Act, the Board shall be charged with the following general duties, namely:-18.
-A. Duties of Generating Company .-(1) Subject to the provisions of this Act, a Generating Company shall be charged with the following duties, namely:-(a)to establish, operate and maintain such generating stations and tie-lines, sub-stations and main transmission lines connected therewith, as may be required to be established by the [competent Government or Governments][in relation to the Generating Company; [ Substituted by Act 115 of 1976, Section 11, for Section 18 (w.r.e.f. 8.10.1976).](b)to operate and maintain in the most efficient and economical manner the generating stations, tie-lines, sub-stations and main transmission lines, assigned to it by the [competent Government or Governments][in co-ordination with the Board or Boards, as the case may be, and the Government or agency having control over the power system, if any, connected therewith; and [ Substituted by Act 115 of 1976, Section 11, for Section 18 (w.r.e.f. 8.10.1976).](c)to carry out, subject to the provisions of section 21, detailed investigations and prepare schemes, in co-ordination with the Board or Boards, as the case may be, for establishing generating stations and tie-lines, sub-stations and transmission lines connected therewith, in such manner as may be specified by the Authority.19. Powers of the Board to supply electricity .-(1) The Board may, subject to the provisions of this Act, supply electricity to any licensee or person requiring such supply in any area in which a scheme sanctioned under Chapter V is in force:
Provided that the Board shall not-(a)supply electricity for any purpose directly to any licensee for use in any part of the area of supply of a bulk-licensee without the consent of the bulk-licensee, unless the licensee to be supplied has an absolute right of veto on any right of the bulk-licensee to supply electricity for such purpose in the said part of such area, or unless the bulk-licensee is unable or unwilling to supply electricity for such purpose in the said part of such area on reasonable terms and conditions and within a reasonable time; or(b)supply electricity for any purpose to any person, not being a licensee for use in any part of the area of supply of a licensee without the consent of the licensee, unless-(i)the actual effective capacity of the licensee's generating station computed in accordance with paragraph IX of the First Schedule at the time when such supply was required was less than twice the maximum demand asked for by any such person; or(ii)the maximum demand of the licensee, being a distributing licensee and taking a supply of energy in bulk is, at the time of the request, less than twice the maximum demand asked for by any such person; or(iii)the licensee is unable or unwilling to supply electricity for such purpose in the said part of such area on reasonable terms and conditions and within a reasonable time.20. Power to Board to engage in certain undertakings .-(1) The Board may, in accordance with any regulations made in this behalf, manufacture, purchase, sell or let on hire on the execution of a hire-purchase agreement or otherwise, any electric machinery, control-gear, fittings, wires or apparatus for lighting, heating, cooling, or motive power or for any other purpose for which electricity can or may be used, or any industrial or agricultural machinery operated by electricity, and may install, connect, repair, maintain or remove such fittings, wires apparatus, machinery or control-gear and in respect thereof demand and take such remuneration or rents and charges and make such terms and conditions as it deems fit.
21. Powers of Board in relation to water-power .- [The Board or a Generating Company may], with the previous approval of the State Government, take such measures as [in the opinion of the Board or the Generating Company, as the case may be,] [Substituted by Act 115 of 1976, Section 13, for " The Board may" and " in the opinion of Board" , respectively (w.r.e.f. 8.10.1976). ] are calculated to advance the development of water-power in the State, and may organise and carry out power and hydrometric survey work and cause to be made such maps, plans, sections and estimates as are necessary for any of the said purposes [and in such manner as the Authority may, from time to time, specify] [Inserted by Act 115 of 1976, Section 13 (w.r.e.f. 8.10.1976). ]:
Provided that, where any such measures relate to a source of water-power already operated upon by a licensee under a license, the Board shall give the licensee notice of such measure and an opportunity to be heard on any representations he may desire to make in that behalf and may consider such representation.22. Power to Board to conduct investigations .-Subject so far as the provisions of this section relate to water-power to the previous approval of the State Government, the Board may at its own expense conduct such investigations, experiments and trials as it thinks fit for the improvement of the methods of transmission, distribution and supply of electricity or of the utilisation of fuel, water-power or other means of generating electricity, and may establish and maintain laboratories for the testing and standardisation of electrical instruments and equipment.
23. Loans by Board to licensees .-(1) Subject to any regulations made in this behalf, the Board may grant loans or advances to any licensee for the purposes of his undertaking on such terms as the Board thinks proper.
24. Power to Board to contribute to certain association .-The Board may, subject to any regulations made in this behalf,-
25. Consulting engineers .-The Board may, subject to such conditions as may be prescribed, from time to time appoint qualified persons to be consulting engineers to the Board and pay them such remuneration as it thinks proper.
26. Board to have powers and obligations of licensee under Act 9 of 1910.-Subject to the provisions of this Act, the Board shall, in respect of the whole State, have all the powers and obligations of a licensee under the Indian Electricity Act, 1910 (9 of 1910), and this Act shall be deemed to be the license of the Board for the purpose of that Act:
Provided that nothing in sections 3 to 11, sub-sections (2) and (3) of section 21 and [section 22, sub-section (2) of section 22-A and sections 23 and 27] of that Act or in [clauses I to V, clause VII and clauses IX to XII] [ Substituted by Act 101 of 1956, Section 10, for " clauses I to XII" (w.e.f. 30.12.1956).] of the Schedule to that Act relating to the duties and obligations of a licensee shall apply to the Board:[Provided further that the provisions of clause VI of the Schedule to that Act shall apply to the Board in respect of that area only where distribution mains have been laid by the Board and the supply of energy through any of them has commenced.] [ Inserted by Act 101 of 1956, Section 10 (w.e.f. 30.12.1956).][26-A. Applicability of the provisions of Act 9 of 1910 to Generating Company.-(1) Notwithstanding anything contained in sub-section (2), nothing in the Indian Electricity Act, 1910 (9 of 1910), shall be deemed to require a Generating Company to take out a license under that Act, or to obtain sanction of the State Government for the purpose of carrying on any of its activities.27. Other functions of [the Board or a Generating Company ]
.- [The Board or a Generating Company] [Substituted by Act 115 of 1976, Section 15, for " The Board" (w.e.f. 8.10.1976). ] shall have such further powers and duties as are provided in this Act.Chapter V
[THE WORKS AND TRADING PROCEDURE OF THE BOARD AND THE GENERATING COMPANY] [ Substituted by Act 115 of 1976, Section 16, for the heading (w.r.e.f. 8.10.1976).]
28. [ Preparation and sanctioning of schemes
.-(1) For the efficient performance of its duties under this Act, the Board or a Generating Company, as the case may be, may prepare one or more schemes, relating to the establishment or acquisition of generating stations, tie-lines, sub-stations or transmission lines as are referred to in clause (e) of section 18 or clause (c) of sub-section (1) of section 18-A, as the case may be.29. Submission of schemes for concurrence of Authority, etc .- [(1) Every scheme estimated to involve a capital expenditure exceeding such sum, as may be fixed by the Central Government, from time to time, by notification in the Official Gazette, shall, as soon as may be after it is prepared, be submitted to the Authority for its concurrence.]
30. Matters to be considered by the Authority .- [The Authority shall, before concurring in any scheme submitted to it under sub-section (1) of section 29, have particular regard to, whether or not in its opinion-]
31. [ Concurrence of Authority to scheme submitted to it by Board or Generating Company
.-(1) Where a scheme is submitted to the Authority under sub-section (1) of section 29, the Authority may, having regard to the matters referred to in section 30, either concur in the scheme without modification or require the Board or, as the case may be, the Generating Company to modify the scheme in such manner as the Authority specifies in the requisition so as to ensure that the scheme conforms to the national power policy evolved by the Authority in pursuance of the provisions contained in clause (i) of sub-section (1) of section 3 and in either case the Authority shall also communicate its decision to the State Government or State Governments concerned:Provided that where the scheme was submitted for concurrence by a Generating Company in relation to which the Central Government is the [competent Government or one of the competent Governments][, the decision shall be communicated also to that Government.32. Power to alter or extend schemes .-The Board or, as the case may be, the Generating Company may, from time to time, alter or extend a scheme by a supplementary scheme prepared and sanctioned in the manner specified in section 31:
Provided that any alterations or extensions of a scheme which are, in the opinion of the Board or, as the case may be, the Generating Company, minor in character may be made without preparing a supplementary scheme:Provided further that where any alteration or extension of the nature referred to in the first proviso is made in respect of a scheme concurred in by the Authority, details of such alteration or extension shall be intimated to the Authority as soon as may be after such alteration or extension is made.33. Provisions applicable to scheme prepared by State Government .-The provisions of sections 28 to 32 (both inclusive) shall, so far as may be, apply also in relation to a scheme prepared by a State Government for the generation, transmission or distribution of electricity.] [ Substituted by Act 115 of 1976, Section 19, for Sections 31 and 32 (w.r.e.f. 8.10.1976).]
34. Controlled stations .- [(1)] Where a generating station situate within an area for which a scheme is in force has been designated in the scheme as a controlled station, the relations between the Board and the licensee owning the station shall, subject to any arrangements agreed under section 47, be regulated by the provisions of the First Schedule.
35. Supply by the Board to licensees owning generating stations .-The Board may at any time declare to a licensee owning a generating station, other than a controlled station, situate within an area for which a scheme is in force that it is ready to make a supply of electricity available to the licensee for the purposes of his undertaking, and thereupon, but without prejudice to the provisions of section 47, the provisions of the Second Schedule shall apply in respect of the relations between the Board and the said licensee.
36. Power to Board to close down generating stations .-The Board may at any time declare to a licensee owning a generating station situate within an area for which a scheme is in force that the station shall be permanently closed down, and thereupon but without prejudice to the provisions of section 47, where the station is a controlled station the provisions of Part III of the First Schedule, or in other cases the provisions of the Third Schedule, shall apply in respect of the relations between the Board and the said licensee with reference to the station to be closed down.
37. Purchase of generating stations or undertakings or main transmission lines by the Board .-(1) Where under the First or Third Schedule any generating station or undertaking is to be purchased by the Board, or where a sanctioned scheme provides for the purchase by the Board of a main transmission line belonging to any licensee,-
(a)the generating station or undertaking from such date of purchase as may be fixed under the appropriate Schedule, or the main transmission line from such date of purchase as the Board shall, by notice in writing given not less than one month before the said date, intimate to the licensee, shall vest in the Board free, save as provided in sub-section (2), from any debt, mortgage, lien or other similar obligation of the licensee or attaching to the station or undertaking or line, as the case may be, and any such debt, mortgage, lien or obligation shall, save as aforesaid, attach to the purchase-money in substitution of the station or undertaking or line:Provided that notwithstanding any agreement to the contrary the licensee shall pay and the mortgagee, chargee, lien-holder or obligee shall accept the whole or part of the purchase-money as the case may be in full or part satisfaction of the debt according as the amount of the purchase-money is more or less than the amount of his debt;(b)without prejudice to the provisions of section 47, the Board shall pay, or tender payment of, the price to be determined in accordance with the Fourth Schedule as soon as the amount thereof has been determined, together with interest on such amount from the date of purchase to the date of payment or tender of payment as aforesaid at the rate of one per centum over the average of the Reserve Bank rates between the said dates;(c)the receipt of the licensee shall notwithstanding anything in any other law, be a full and sufficient discharge to the Board for the payment due in respect of the purchase.38. Provision of new generating stations .-[ Omitted by the Electricity (Supply) Amendment Act, 1976 (115 of 1976), section 21 (w.r.e.f.8-10-1976)].
39. Operation of Board's generating stations .- [(1)] Where the Board itself establishes a new generating station or acquires a generating station otherwise than for the purpose of closing it down, it shall operate the station itself, but the Board may with the sanction of the State Government, make arrangements with any licensee or other person for its operation, if in the opinion of the Board it is desirable so to do.
40. Provision regarding connections with main transmission lines purchased by the Board .-Where the Board has purchased a main transmission line and by reason of the user thereof by the Board any alteration or replacement of switch-gear or other apparatus of any licensee connected with the line becomes necessary, the Board may in its discretion itself carry out such alteration or replacement at its own cost or defray the reasonable expenses incurred by the licensee in effecting such alteration or replacement; and any question whether such alteration or replacement is necessary or whether the expenses incurred in connection therewith are reasonable shall in default of agreement be determined [by arbitration] as provided under section 76.
41. [ Use of transmission lines
.-(1) Until the Central Commission in established, the Central Government and thereafter the Central Commission in the case of inter-State transmission system and until the State Commission is established, the State Government and thereafter the State Commission in the case of intra-State transmission system may determine the charges payable to the Central Transmission Utility or State Transmission Utility, as the case may be, for the use of transmission system by a Board, its successor entity, generating company, licensee or any other person.42. Powers to Board for placing wires, poles, etc .- [(1)] Notwithstanding anything contained in sections 12 to 16 and 18 and 19 of the Indian Electricity Act, 1910 (9 of 1910), but without prejudice to the requirements of section 17 of that Act where provision in such behalf is made in a sanctioned scheme, the Board shall have, for the placing of any wires, poles, wall-brackets, stays, apparatus and appliances for the transmission and distribution of electricity, or for the transmission of telegraphic or telephonic communications necessary for the proper co-ordination of the works of the Board, all the powers which the telegraph authority possesses under Part III of the Indian Telegraph Act, 1885 (13 of 1885) with regard to a telegraph established or maintained by the Government or to be so established or maintained:
Provided that where a sanctioned scheme does not make such provision as aforesaid, all the provisions of sections 12 to 19 of the first-mentioned Act shall apply to the works of the Board.43. Power to Board to enter into arrangements for purchase or sale of electricity under certain conditions .-(1) The Board may enter into arrangements with any person producing electricity within the State for the purchase by the Board, on such terms as may be agreed, of any surplus electricity which that person may be able to dispose of.
44. Restriction on establishment of new generating stations or major additions or replacement of plant in generating stations .-(1) Notwithstanding anything contained in any other law for the time being in force or in any license, but subject to the provisions of this Act, it shall not be lawful for a licensee, or any other person, not being the Central Government or any Corporation created by [a Central Act], [or any Generating Company] [ Inserted by Act 115 of 1976, Section 26 (w.r.e.f. 8.10.1976).], except with the previous consent in writing of the Board, to establish or acquire a new generating station or to extend or replace any major unit of plant or works pertaining to the generation of electricity in a generating station:
Provided that such consent shall not, except in relation to a controlled station, be withheld unless within three months from the date of receipt of an application-(a)for consent to the establishment or acquisition of a new generating station, the Board-(i)gives to the applicant being a licensee an undertaking that it is competent to, and will, within twenty-four months from the said date, afford to him a supply of electricity sufficient for his requirements pursuant to his application; or(ii)shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source;(b)for consent to the extension of any major unit of plant or works as aforesaid, the Board-(i)gives to the applicant being a licensee an undertaking that within twenty-four months from the said date either the station to which the application pertains will become a controlled station in terms of section 34, or the Board will make a declaration to the applicant in terms of section 35 offering him a supply of electricity sufficient for his requirements pursuant to his application, or the Board will make a declaration to him in terms of section 36; or(ii)shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source or by other appropriate means;(c)for consent to the replacement of any major unit of plant or works, the Board-(i)gives to the applicant being a licensee an undertaking that within eighteen months from the said date either the station to which the application pertains will become a controlled station in terms of section 34 or the Board will make a declaration to him in terms of section 36; or(ii)shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source or by other appropriate means.45. Power to Board to enter upon and shut down generating stations, in certain circumstances .-(1) If any licensee fails to close down his generating station pursuant to a declaration of the Board under section 36, or, if any person establishes or acquires a new generating station or extends or replaces any plant or works in any generating station in contravention of section 44, the Board may authorise any of its officers to enter upon the premises of such station and shut down the station or the plant or works, as the case may be, in respect of which the failure or contravention has occurred.
46. The Grid Tariff .-(1) A tariff to be known as the Grid Tariff shall, in accordance with any regulations made in this behalf, be fixed from time to time by the Board in respect of each area for which a scheme is in force, and tariffs fixed under this section may, if the Board thinks fit, differ for different areas.
47. Power to Board to make alternative arrangements with licensees .-Notwithstanding anything contained in sections 34 to 37 and sub-section (2) of section 46 but subject to any regulations made in this behalf, the Board may make such arrangements as may be mutually agreed with any licensee whose area of supply is situate within an area for which a scheme is in force, in regard to the purchase or sale of electricity and the price thereof, or the purchase, operation or control of any generating station or main transmission line:
Provided that in making any such arrangement the Board shall not show undue preference to any licensee.48. Powers to licensee to carry out arrangements under this Act .-Where under any provision of this Act the Board is authorised or required to enter into arrangements with any licensee for any purpose, then notwithstanding anything contained in any law or in any license, memorandum of association or other instrument regulating the constitution or powers of the licensee, it shall be lawful for the licensee to enter into and carry out any such arrangements.
49. [ Provision for the sale of electricity by the Board to persons other than licensees
.-(1) Subject to the provisions of this Act and of regulations, if any, made in this behalf, the Board may supply electricity to any person not being a licensee upon such terms and conditions as the Board thinks fit and may for the purposes of such supply frame uniform tariffs.50. Board not to supply electricity in certain circumstances .-Nothing contained in sections 34, 35 and 36 shall apply in any case where under section 19, it is not permissible for the Board to supply electricity directly to a licensee owning a generating station; and nothing in sections 46, 47 and 49 shall empower the Board to supply electricity directly to any licensee or person to whom it is not otherwise entitled so to supply electricity.
51. Provisional payments .-Where the price to be paid for electricity by or to the Board under this Act cannot be finally ascertained until after the end of a year of account, the amount to be paid shall be ascertained as soon as practicable thereafter, but the party from whom the payment is due shall make to the other monthly payments on account of the net amounts due in accordance with estimates made for the purpose, subject to adjustment as soon after the end of the year of account as the actual liability can be ascertained.
52. Lower limit of power factor in supply by Board .-Unless otherwise agreed between the Board and the licensee, no supply of electricity taken by a licensee from the Board under this Act shall be taken at an average power factor below 0.85 during the period of maximum demand of the licensee in any month, and in the event of the average power factor as aforesaid being lower than 0.85, the licensee shall within a reasonable time take such measures, the cost of which shall not be borne by the Board, as may be necessary to raise it to a value not lower than 0.85.
53. Provision of accommodation and right of way .-(1) Where the Board for the purposes of any arrangements which it has made with any licensee under this Act requires accommodation on, in, under or over the premises of the licensee for any works or apparatus to be provided by the Board, the licensee shall, if suitable and sufficient accommodation exists, grant such accommodation free of cost to the Board, or if such accommodation does not exist, it shall be provided upon such terms and conditions as may be agreed between the Board and the licensee.
54. Power to Board to connect meters, etc., to apparatus of licensees .-The Board shall have power to connect with the apparatus of any licensee any such correct meters, switch-gear and other equipment as may be necessary to enable it to carry out the provisions of this Act, and such meters, switch-gear and other equipment shall, unless otherwise agreed, be provided and maintained by the Board at its own cost.
55. [ Compliance of directions of the Regional Electricity Board, etc., by licensees or Generating Companies
.-(1) Until otherwise specified by the Central Government, the Central Transmission Utility shall operate the Regional Load Despatch Centres and the State Transmission Utility shall operate the State Load Despatch Centres.56. Leases of generating stations .-No licensee shall, except with the previous approval in writing of the Board and subject to any conditions which the Board may think fit to impose, enter into any arrangement whereby any generating station is to be let or held on lease by him, and any such arrangement entered into in contravention of this sub-section shall be void and of no effect.
57. [ Licensee's charges to consumers
.-The provisions of the Sixth Schedule [* * *][shall be deemed to be incorporated in the license of every licensee, not being a local authority-57.
-A. Rating committees.- (1) Where the provisions of the Sixth Schedule [* * *] [Substituted by Act 101 of 1956, Section 14, for Section 57 (w.e.f. 30.12.1956). ] are under section 57 deemed to be incorporated in the license of any licensee, the following provisions shall have effect in relation to the said licensee, namely:-(a)the Board or where no Board is constituted under this Act, the State Government-(i)may, if satisfied that the licensee has failed to comply with any of the provisions of the Sixth Schedule; and(ii)shall, when so requested by the licensee in writing, constitute a rating committee to examine the licensee's charges for the supply of electricity and to make recommendations in that behalf to the State Government:Provided that where it is proposed to constitute a rating committee under this section on account of the failure of the licensee to comply with any provisions of the Sixth Schedule, such committee shall not be constituted unless the licensee has been given a notice in writing of thirty clear days (which period, if the circumstances so warrant may be extended from time to time) to show cause against the action proposed to be taken:Provided further that no such rating committee shall be constituted if the alleged failure of the licensee to comply with any provisions of the Sixth Schedule raises any dispute or difference as to the interpretation of the said provisions or any matter arising therefrom and such difference or dispute has been referred by the licensee to the arbitration of the Authority under paragraph XVI of that Schedule before the notice referred to in the preceding proviso was given or is so referred within the period of the said notice:Provided further that no such rating committee shall be constituted in respect of a licensee within three years from the date on which such a committee has reported in respect of that licensee, unless the State Government declares that in its opinion circumstances have arisen rendering the orders passed on the recommendations of the previous rating committee unfair to the licensee or any of his consumers ;(b)a rating committee under clause (a) shall,-(i)where such committee is to be constituted under sub-clause (i) of that clause, be constituted not later than three months after the expiry of the notice referred to in the first proviso to that clause ;(ii)where such committee is to be constituted at the request of the licensee, be constituted within three months of the date of such request ;(c)a rating committee shall, after giving the licensee a reasonable opportunity of being heard and after taking into consideration the efficiency of operation and management and the potentialities of his undertaking, report to the State Government within three months from the date of its constitution, making recommendations with reasons therefor, regarding the charges for electricity which the licensee may make to any class or classes of consumers, so, however, that the recommendations are not likely to prevent the licensee from earning clear profit, sufficient when taken with the sums available in the Tariffs and Dividends Control Reserve to afford him a reasonable return as defined in the Sixth Schedule during his next succeeding three years of account:Provided that the State Government may, if it so deems necessary, extend the said period of three months by a further period not exceeding three months within which period the report of the rating committee may be submitted to it;(d)within one month after the receipt of the report under clause (c), the State Government shall cause the report to be published in the Official Gazette, and may at the same time make an order in accordance therewith fixing the licensee's charges for the supply of electricity with effect from such date, not earlier than two months or later than three months, after the date of publication of the report as may be specified in the order and the licensee shall forthwith give effect to such order;(e)the charges for the supply of electricity fixed under clause (d) shall be in operation for such period not exceeding three years as the State Government may specify in the order:Provided that nothing in this clause shall be deemed to prevent a licensee from reducing at any time any charges so fixed.57.
-B. Power of rating committee to call for information, etc .-A rating committee constituted under section 57-A may, for the purpose of discharging its functions, by notice in writing, require the licensee to give such information, or to furnish such accounts and other documents in his possession or power, as may be specified in the notice.58. Power to direct amortisation and tariffs policies of licensees being local authorities .-The Board or where no Board is constituted under this Act, the State Government shall have power to direct the amortisation and tariffs policies of any licensee, being a local authority, with respect to his licensed undertaking in such manner as the Board or the State Government, as the case may be, after giving the local authority a reasonable opportunity of being heard, considers expedient for the purposes of the Act; and the licensee, being a local authority, the provisions of any other law or of any rules made or directions given thereunder notwithstanding, shall give effect to any such directions of the Board or the State Government, as the case may be:
[Provided that the Board shall not issue any directions under this section except after obtaining the prior approval of the State Government.]Chapter VI
THE BOARD'S FINANCE, ACCOUNTS AND AUDIT
59. [ General principles for Board's finance
.-(1) The Board shall, after taking credit for any subvention from the State Government under section 63, carry on its operations under this Act and adjust its tariffs so as to ensure that the total revenues in any year of account shall after meeting all expenses properly chargeable to revenues, including operating, maintenance and management expenses, taxes (if any) on income and profits, depreciation and interest payable on all debentures, bonds and loans, [leave such surplus as is not less than three per cent, or such higher percentage, as the State Government may, by notification in the Official Gazette, specify in this behalf, of the value of the fixed assets of the Board in service at the beginning of such year.Explanation .-For the purposes of this sub-section, "value of the fixed assets of the Board in service at the beginning of the year" means the original cost of such fixed assets as reduced by the aggregate of the cumulative depreciation in respect of such assets calculated in accordance with the provisions of this Act and consumers' contributions for service lines.]60. Board to assume obligations of State Government in respect of matters to which this Act applies .-(1) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the State Government for any of the purposes of this Act before the first constitution of the Board shall be deemed to have been incurred, entered into or engaged to be done by, with or for the Board; and all suits or other legal proceedings instituted or which might but for the issue of the notification under sub-section (4) of section 1, have been instituted by or against the State Government may be continued or instituted by or against the Board.
[(1-A) All schemes sanctioned by the State Government and transferred to the Board shall, for the purposes of this Act, be deemed to have been sanctioned by the Board.] [Substituted by Act 23 of 1978, Section 8 (w.e.f. 3.6.1978). ]61. Annual financial statement .-(1) In February of each year the Board shall submit to the State Government a statement in the prescribed form of the estimated capital and revenue receipts and expenditure for the ensuing year.
62. Restriction on unbudgeted expenditure .-(1) Save where in the opinion of the Board circumstances of extreme urgency have arisen, no sum exceeding [seventy-five thousand] rupees on account of recurring expenditure or exceeding [three lakhs] [ Substituted by Act 30 of 1966, Section 13, for " one lakh" (w.e.f. 16.9.1966).] of rupees on account of non-recurring expenditure shall be expended by the Board in any year of account unless such sum has been included in a statement submitted under sub-section (1) or sub-section (5) of section 61.
63. Subventions to the Board .-The State Government may, with the approval of the State Legislature, from time to time make subventions to the Board for the purposes of this Act on such terms and conditions as the State Government may determine.
64. Loans to the Board .-The State Government may, from time to time, advance loans to the Board on such terms and conditions, not inconsistent with the provisions of this Act, as the State Government may determine.
65. Power of Board to borrow .-(1) The Board may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions, as may be prescribed in this behalf, borrow any sum required for the purposes of this Act.
66. Guarantee of loans .-The State Government may guarantee in such manner as it thinks fit the payment of the principal and interest of any loan proposed to be raised by the Board or of either the principal or the interest:
Provided that the State Government shall, so long as any such guarantees are in force, lay before the [House] or, as the case may be, [Houses] [ Substituted by A.O. 1950, for " Chambers" ] of the State Legislature in every year during the budget session a statement of the guarantees, if any, given during the current financial year of the State, and an up-to-date account of the total sums, if any, which have been paid out of State revenues by reason of any such guarantees or paid into State revenues towards repayment of any money so paid out.[66-A. Conversion of amount of loans into capital.-(1) Notwithstanding anything contained in section 12-A, where any loan has been obtained from the State Government by a Board, in respect of which Board a notification has been made under sub-section (1) of that section, or any loan is deemed to be advanced to such Board by the State Government under sub-section (2) of section 60, the State Government may, if in its opinion it is necessary in the public interest so to do, by order, direct that the amount of such loan or any part thereof shall be converted into capital provided to the Board on such terms and conditions as appear to that Government to be reasonable in the circumstances of the case, even if the terms of such loan do not include a term providing for an option for such conversion.67. [ Priority of liabilities of the Board
.-The Board shall distribute the surplus referred to in sub-section (1) of section 59 to the extent available in a particular year in the following order, namely:-68. [ Charging of depreciation by Board
.-(1) [* * *][The Board shall provide each year for depreciation such sum calculated in accordance with such principles as the Central Government may, after consultation with the Authority, by notification in the Official Gazette, lay down from time to time.[* * *]69. [ Accounts and audit
.-(1) The Board shall cause proper accounts and other records in relation thereto to be kept, including a proper system of the internal check and prepare an annual statement of accounts, including the profit and loss account and the balance-sheet in such form [as the Central Government may, by notification in the Official Gazette, prescribe by rules made in this behalf in consultation with the Comptroller and Auditor-General of India and the State Governments].Chapter VII
Miscellaneous
70. Effect of other laws .-(1) No provision of the Indian Electricity Act, 1910 (9 of 1910), or of any rules made thereunder or of any instrument having effect by virtue of such law or rule shall, so far as it is inconsistent with any of the provisions of this Act, have any effect:
Provided that nothing in this Act shall be deemed to prevent the State Government from granting, after consultation with the Board, a license not inconsistent with the provisions of the Indian Electricity Act, 1910 (9 of 1910), to any person in respect of such area and on such terms and conditions as the State Government may think fit.71. Rights and options to purchase under Act 9 of 1910 to vest in Board .- [ Repealed by the Indian Electricity (Amendment) Act , 1959 (32 of 1959), section 41 (w.e.f.5-9-1959).]
72. Water-power concessions to be granted only to [the Board or a Generating Company]
[Substituted by Act 101 of 1956, Section 18, for Section 69 (w.e.f. 30.12.1956). ] .-The State Government shall not grant any concession for the development or use of water-power for any electrical purpose to any person other than the B [the Board or a Generating Company] [ Substituted by Act 115 of 1976, Section 27, for " the Board" (w.r.e.f. 8.10.1976).], unless the State Government is of opinion that it is not expedient for [the Board or a Generating Company] [ Substituted by Act 115 of 1976, Section 27, for " the Board" (w.r.e.f. 8.10.1976).] [or the Generating Company so to develop] [ Substituted by Act 115 of 1976, Section 27, for " or that the Board is unable so to develop" (w.r.e.f. 8.10.1976).] or use the water-power concerned.73. Co-ordination between the Board's schemes and multi-purpose schemes .-Where a multi-purpose scheme for the development of any river in any region is in operation, [the Board and the Generating Company shall co-ordinate their activities] with the activities of the persons responsible for such scheme in so far as they are inter-related.
74. Powers of entry .-Any [officer or other employee] [of the Board or of a Generating Company] [ Substituted by Act 115 of 1976, Section 29, for certain words (w.r.e.f. 8.10.1976).] generally or specially [authorised by the Board or by the Generating Company, as the case may be,] [Substituted by Act 115 of 1976, Section 29, for certain words (w.r.e.f. 8.10.1976). ] in this behalf may at any reasonable time after giving the owner or occupier reasonable notice enter upon any land or premises and there do such things as may be reasonably necessary for the purposes of lawfully using any transmission lines or main transmission lines, or of making any survey, examination or investigation preliminary or incidental to the exercise of powers or the performance of [duties by the Board or by the Generating Company, as the case may be,] [Substituted by Act 115 of 1976, Section 29, for certain words (w.r.e.f. 8.10.1976). ] under this Act.
75. Annual Reports, statistics and returns .- [* * *] [(1)] [ Sub-Section (1-A) renumbered as sub-Section (1) by Act 30 of 1966, Section 16 (w.e.f. 16.9.1966).] [* * *] [ The words " Without prejudice to the provisions of sub-Section (1)" omitted by Act 30 of 1966, Section 16 (w.e.f. 16.9.1966).] The Board shall, as soon as may be after the end of each financial year, prepare and submit to the State Government [before such date and in such form as may be prescribed a report giving an account of its activities during the previous financial year and the report shall also give an account of the activities, if any, which are likely to be undertaken by the Board in the next financial year; and the State Government shall cause every such report to be laid before the State Legislature as soon as may be after it is received by the State Government.] [ Inserted by Act 30 of 1966, Section 16 (w.e.f. 16.9.1966).]
76. Arbitration .- [* * *]
77. [ Penalties
.-If any licensee or other person, not being the Board, fails without, reasonable excuse to comply with, or give effect to, any direction, order or requirement made under any of the following provisions, namely:-77.
-A. Source from which fines may be paid .-All fines payable by a licensee under this Act or under any other law for the time being in force in respect of any offence committed by the licensee, shall be payable by him from that part of the clear profit to which he is entitled under the Sixth Schedule.77.
-B. Offences by companies .-(1) If the person committing an offence under this Act is a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.77.
-C. Cognizance of offences .- No Court shall take cognizance of an offence under section 77, except on the complaint of,-78. Power to make rules .-(1) The State Government may, after previous publication, by notification in the Official Gazette make rules to give effect to the provisions of this Act.
79. Power to make regulations .- [The Board may, by notification in the Official Gazette, make regulations] not inconsistent with this Act and the rules made thereunder to provide for all or any of the following matters, namely:-
80. Provision relating to income-tax and super-tax .-(1) For the purposes of the Indian Income-tax Act, 1922 (11 of 1922), the Board shall be deemed to be a company within the meaning of that Act and shall be liable to income-tax and super-tax accordingly on its income, profits and gains.
81.
[Members and officers and other employees] of the Board to be public servants.-All [members and officers and other employees] [Substituted by Act 23 of 1978, Section 20, for certain words (w.e.f. 3.6.1978). ] of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).82. Protection of persons acting under this Act .-No suit, prosecution or other legal proceeding shall lie against [any [member or officer or other employees][of the Board] [Substituted by Act 30 of 1966, Section 18, for " any person" (w.e.f. 16.9.1966). ] for anything which is in good faith done or intended to be done under this Act.
83. Saving of application of Act .-Nothing this Act shall be deemed to apply to a licensee on whom a notice under section 5 or section 7 of the Indian Electricity Act, 1910 (9 of 1910), has been served prior to the coming into force of the sections, Schedule, and Table mentioned in sub-section (3) of section 1.
THE FIRST SCHEDULE(See Sections 34 and 36)ARRANGEMENTS IN RESPECT OF CONTROLLED STATIONSPart I
ASSUMPTION OF CONTROL1.
Part II
PRICE TO BE PAID FOR ELECTRICITY SUPPLIED BY THE BOARD UNDER PART IIX. There shall be agreed between the Board and the licensee in respect of each month of the licensee's year of account-(a)The maximum capacity of the station, that is to say, the maximum capacity (expressed in kilowatts available for supply to feeders) of such plant and works appertaining to the generation of electricity at the station as where available for reliable and regular commercial operation on the first day of the month, including the capacity of such plant and works as were temporarily out of commission;(b)The number and size of units of plant works, forming part of the aforesaid plant and works, which ought properly to be deemed to be stand-by if the station were not a controlled station;(c)The stand-by capacity of the station, that is to say, the number of kilowatts (expressed in kilowatts available for supply feeders) by which the maximum capacity of the station would be reduced if the stand-by plant and works referred to in Cl. (b) were to be left out of account;(d)The actual effective capacity of the station, that is to say, the number of kilowatts by which the maximum capacity exceeds the stand-by capacity.X. (1) The licensee shall be entitled to purchase from the station in each month at a prize determined under para. XIII a number of kilowatts not exceeding the scheduled effective capacity of the station on the first day of that month as determined in sub-para. (2).| "A | + | A | x | B | where |
| 2 | 2 | C" |
Part III
PERMANENT CLOSING DOWN OF A CONTROLLED STATIONXVI. The Board may give the licensee not less than six months notice in writing expiring at the end of any year of account that from that first day of the next succeeding year of account it will not again direct the licensee to generate any electricity in the station, and upon that date (hereinafter in this Schedule referred to as the date of closing down) the station shall be permanently closed down.XVII. From the date of closing down paras. 1, IV and VIII shall, be in relation to the station, cease to have effect, and on receipt of the notice under para. XVI the licensee shall have the option (to be exercised by a date not later than three months prior to the date of closing down) either-| "A | x | B | where |
| C" |
Part IV
PURCHASE BY BOARD OF CONTROLLED STATION NOT TO BE CLOSED DOWNXIX. Where in respect of any month notified by the Board (and hereinafter in this Schedule referred to as the relevant month), the scheduled effective capacity of the station is computed under para. X to be less than one-half of the actual effective capacity of the station, the Board may give to the licensee six months' notice in writing that on the first day of the year of the account next following the date of expiration of such notice the station will be purchased by the Board.XX. Notwithstanding anything contained in para. X, in computing the scheduled effective capacity for purposes of para. XIX there shall be left out of account all such units of plant and works as would not reasonably have been required by the licensee for purposes other than supply to the Board had the station not been a controlled station.XXI. Where a notice under para. XIX has been served by the Board on the licensee, the Board shall purchase the station or where a severance of the station from the distributing system of the licensee is not possible or is likely to affect prejudicially the interest of the licensee and the licensee so requires the entire undertaking of the licensee at the date specified in the notice and at a price determined under the Fourth Schedule.XXII. From the date of purchase of the station or at the option of the licensee the undertaking of the licensee under para. XXI the provisions of paras.I, IV and VIII shall, in relation to the station, cease to have effect, and the licensee shall be required to purchase the electricity supplied to him by the Board in accordance with the provisions of Part II as modified by para. XXIII.XXIII. In applying the provisions of Part II of the purchase by a licensee whose station has been purchased under this Part of electricity supplied to him by the Board,-(a)The station shall, notwithstanding that it has been purchased by the Board, be deemed to remain a controlled station;(b)Cl. (a) of para. XII shall be construed as if the reference therein to the provisions of Eighth Schedule excluded a reference to Cls. (b), (c) and (d) of para. I of that Schedule, and as if the following proviso were added to the said Cl. (a), namely:-"Provided that the annual charges to be included in accordance with Cls. (e) and (f) of para. I of the said Schedule shall be such as would have resulted had the assets purchased by the Board under Part IV remained in the ownership of the licensee,"(c)Cl. (b) of para.XII shall be construed as if the reference therein to Cls. (b). (c) and (d) of para. I of the Eighth Schedule were omitted;(d)There shall be added to the sum payable by the licensee to the Board under Cl. (a) of para. XIII in each month of the year of account a sum equal to one-twelfth of the amount calculated from the expression,| "A | x | B | where |
| C" |
| "A | + | A | x | B |
| 2 | 2 | C" |
| "B | x | D |
| C" |
1. For the purposes of this Schedule-
1. The following charges and allowances shall be made in respect of a year of account for the use by 1 [the Board or the Generating Company] of main transmission lines or transmission lines (hereafter in this Schedule referred to as lines) namely:
(a)The actual cost of maintenance of the lines, including renewals thereof not chargeable to capital account;(b)Sums paid in respect of the lines for insurance and as rents, rates and taxes [(including all taxes payable on income and profits)] [Substituted by Act 101 of 1956, Section 26, for certain words (w.e.f. 30.12.1956).] -,(c)The proportion of management and general establishment charges properly attributable to the lines;(d)Any other expenses on revenue account properly attributable to the lines;(e)[Interest on the depreciated cost of the lines shown in the books, of the undertaking and properly attributable to the lines (whether defrayed out of capital or revenue and interest on such working capital as is properly attributable to the lines] [Substituted by Act 101 of 1956, Section 26, for certain words (w.e.f. 30.12.1956).] :Provided that for the purpose of ascertaining the principal on which interest is payable within the meaning of this clause, there shall be left out of account any part of principal interest on which is charged to capital;(f)An allowance for depreciation of an amount determined in respect of the lines in accordance with the provisions of para. VI of the sixth Schedule.II. If the lines are used partly by [the Board or the Generating Company] [Substituted by Act 115 of 1976, Section 32 (w.r.e.f. 8.10.1976).] and partly by the licensee owning them, or if the arrangement for their use comes into force or determines otherwise than at the beginning or end of a year of account, the charges and allowances referred to in Para. I shall be the proper proportion thereof having regard to the use made of the lines by [the Board or the Generating Company] the period of such use during the year and with the addition of the cost of such additional transmission losses as may have been incurred by the licensee as a result of the Board's user of the lines.[III. For the purposes of Cl. (e) of para. I,-(i)"Depreciated cost of the lines" means original cost thereof as determined in accordance with the provisions of subparagraph (6) of para. XVII of Sixth Schedule less the amount written of or set aside on account of depreciation on fixed assets and the amount written off in respect of intangible assets thereof in the books of the undertaking before or after the commencement of this Act;(ii)The rate of interest shall be,-(a)Where the licensee owning the lines is a local authority, the average rate payable on the money raised by that authority for the purpose of constructing the lines;(b)In any other case, the Reserve Bank rate ruling at the beginning of the year referred to in para. I plus two per centum.]THE SIXTH SCHEDULE[(See Sections 57 and 57-A)] [Substituted by Act 101 of 1956, Section 27, for "(See Section 57)" (w.e.f. 30.12.1956).]FINANCIAL PRINCIPLES AND THEIR APPLICATIONI. [Notwithstanding anything contained in The Indian Electricity Act, 1910 (9 of 1910) [except sub-section (2) of Section 22-A] [Substituted by Act 101 of 1956, Section 27, for certain words (w.e.f. 30.12.1956).], and the provisions in the licence of a licensee, the licensee shall so adjust his [charges] [Substituted by Act 30 of 1966, Section 21, for "rates" (w.r.e.f. 1.4.1966).] for the sale of electricity whether by enhancing or reducing them that his clear profit in any year of account shall not, as far as possible, exceed the amount of reasonable return] [Substituted by Act 30 of 1966, Section 20, for paragraph III (w.e.f. 1.4.1966).]:Provided that such [charges] [Substituted by Act 30 of 1966, Section 21, for "rates" (w.r.e.f. 1.4.1966).] shall not be enhanced more than once in any year of account:Provided further that the licensee shall not be deemed to have failed so to adjust his Substituted by Act 30 of 1966, Section 21, for "rates" (w.r.e.f. 1.4.1966).[charges] if the clear profit in any year of account has not exceeded the amount of reasonable return by [twenty] [Substituted by Act 101 of 1956, Section 27, for "fifteen" (w.e.f. 1.4.1957).] per centum of the amount of reasonable return:Provided further that the licensee shall not enhance the [charges] [Substituted by Act 30 of 1966, Section 21, for "rates" (w.r.e.f. 1.4.1966).] for the supply of electricity until after the expiry of a notice in writing of not less than sixty clear days of his intention to so enhance the [charges] [Substituted by Act 30 of 1966, Section 21, for "rates" (w.r.e.f. 1.4.1966).], given by him to the State Government and to the Board :Provided further that if the [charges] [Substituted by Act 30 of 1966, Section 21, for "rates" (w.r.e.f. 1.4.1966).] of supply fixed in pursuance of the recommendations of a rating committee constituted under Section 57-A are lower than those notified by the licensee under and in accordance with the preceding proviso, the licensee shall refund to the consumers the excess amount recovered by him from them :][Provided also that nothing in this Schedule shall be deemed to prevent a licensee from levying with the previous approval of the State Government, minimum charges for supply of electricity for any purpose.] [Inserted by Act 30 of 1966, Section 21 (w.e.f. 1.4.1966).][I-A. The notice referred to in the third proviso to para. I shall be accompanied by such financial and technical data in support of the proposed enhancement of charges as the State Government may, by general or special order, specify.] [Inserted by Act 30 of 1966, Section 21 (w.e.f. 1.4.1966)]II. (1) If the clear profit of a licensee in any year of account is in excess of the amount of reasonable return, one-third of such excess, not exceeding [five per cent] [Substituted by Act 101 of 1956, Section 27, for "7-1/2 percent" (w.e.f. 1.4.1957).] of the amount of reasonable return, shall be at the disposal of the undertaking. Of the balance of the excess, one-half shall be appropriated to a reserve which shall be called the Tariffs and Dividends Control Reserve and the remaining half shall either be distributed in the form of a proportional rebate on the amounts collected from the sale of electricity and meter rentals or carried forward in the accounts of the licensee for distribution to the consumers in future, in such manner as the State Government may direct.| State Amendment- [West Bengal.]- In its application to the State of West Bengal, (a) in Sch. VI,---(a) after para. V (1), Sub para. (1 -A) namely:--"(1-A)The licensee may, with the previous approval of the State Government, take an advance from the Contingency Reserve during the currency of the licence to meet such charges and on such terms and conditions as the State Government may determine".(b) Sub-paragraph. 2, substituted the following sub-para., namely :-"(2) On the purchase of the undertaking the following amounts shall be handed over to the purchaser and maintained as Contingency Reserve-(a) The Contingency Reserve after deduction of the amount drawn under sub-para (1): and(b) The amount which has not been repaid out of the taken from the Contingency Reserve under sub-paragraph (I -A), together with the interest, if any, payable on the advance:Provided that where the undertaking is purchased by the Board or the State Government, the amounts referred to in Cls. (a) and (b) above, shall after deduction of the amount of compensation, if any, payable to the employees of the Outgoing licensee under any law for the time being in force, be handed over to the Board or the State Government, as the case may be".-W.B. Act, 42 of 1979, Section 3 (w.e f. 17th March, 1980). |
1. For the purposes of this Schedule--
| (a) cost of fuel | ... | 100 |
| 100+12.8L | ||
| (b) cost of oil, water and stores | ... | 100 |
| 100+9.66L | ||
| (c) salaries and wages | ... | 100 |
| 100+0.38L | ||
| (d) cost of repairs, maintenance and renewals | ... | 100 |
| 100+0.0001N L |