Section 4 in The Orissa Electricity Reform (Transfer of Undertakings, Assets, Liabilities, Proceedings and Personnel) Scheme Rules, 1996
4. Classification of Assets into Undertakings.
(1)The State Government may classify the assets, liabilities and proceedings acquired by the State under Rule 3 as well as the assets, liabilities and proceedings relating to undertakings owned by the State Government, as the State Government may consider appropriate, into.(a)Generation Undertakings; and(b)Transmission and Distribution Undertakings;Taking into consideration the relatedness, usability proximity and contiguity to the function pertaining to generation or transmission and distribution activities.(2)Unless otherwise specifically provided for in these rules or under the order to be notified by the State Government for transfer of Undertakings, assets, liabilities and proceeding, the Generation Undertakings shall include the assets, Liabilities and proceedings as specified in Schedule 'A' and the transmission and distribution undertakings shall include the assets, liabilities and proceedings as specified in Schedule 'B'.(3)The assets, liabilities and proceedings which are not classified under Sub-rule (1) and not specified under the Schedules mentioned in Sub-rule (2) shall be treated as residuary assets residuary liabilities and residuary proceedings, as the case may be.(4)If the assets under Sub-rules (1) to (3) above are subject to security documents or arrangements in favour of third parties for any financial assistance or obligation taken by the Board and the liabilities in respect thereof are to be classified in different Undertakings or as residuary Liabilities the State Government may provide for the apportionment of the Liabilities secured by such properties assets and rights between the different Undertakings and the residuary assets and upon such apportionment the security shall be applicable to the apportioned liability only.
