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REGISTERED No. D-(D)-7"

(Hie (bftgette of Jfndia

EXTRAORDINARY

PART n—Section 1

PUBLISHED BY AUTHORITY

N". 154] NEW DELHE, FRIDAY, OCTOBER 8,19T6/ASVINA i6, 1898^

SnpwaU paging la riven to ibis Fart In order that It may bo ifiml

ai a separate compilation.

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Legislative Department) New Delhi, the 8th October, 1976/Asvina 16, 1898 (Saka) THE ELECTRICITY (SUPPLY) AMENDMENT ORDINANCE, 1978 No. 13 or 1976

Promulgated by the President in the Twenty-seventh Year of

the Republic of India.

An Ordinance further to amend the Electricity (Supply) Act,

1948.

WHEREAS Parliament is not in session and the President Is satisfied that circumstances exist which render It necessary for him to take imme- diate action;

Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance: —

1. (1) This Ordinance may be called the Electricity (Supply) Amend- ment Ordinance, 1976.

{Z) It shall come Into force at once.

Short

title and

com-

mence-

ment.

t. During the period of operation of this Ordinance, the Electricity (Supply) Act, 1948 (hereinafter referred" to as the principal Act), shall have effect subject to the amendments specified In sections 3 to 34 (both inclusive).

Act 54 of

IMS to be

tempo-

rarily

amended.

3. In section 1 of the principal Act, for sub-section (3), the following BUb-sectlon shall be substituted, namely: —

Amend-

ment o*

•ectlon 1.

"(3) This section and sections 2, 3, 4, 4A, 4B, 4C, 15A, 18A, 26A, 28 to 34 (both Inclusive), sub-section (2) of section 39, section 42, sub-section (3) of section 43 and sections 57, 57A, 57B, 68, 75A, 76,

(1403 )

77, 77A, 77B, 77C, 82 and 83 and the provisions of the Sixth and Seventh Schedules shall come into force at once.".

4. In section 2 of the principal Act,—

(a) after clause (4), the following clause shall be inserted,

Amend- ment erf section 2.

namely: —

' (4A) "Generating Company" means a company formed—

(a) either by the Central Government or by any State

Government; or

(b) jointly by the Central Government and one or more State Governments or by two or more State Governments,

and registered under the Companies Act, 1956;'; 1 of 1036.

(b) in clause (5),—

(i) after the words "including any building and plant", the brackets and words "(with step-up transformer, switchgear, cables or other appurtenant equipment, if any)" shall be inserted;

(ii) the words "for transforming, converting or distributing

electricity" shall be omitted;

(c) in clause (6), for the words and figures "but, the provisions of section 26 of this Act notwithstanding, does not include the Board", the words, figures and letter "but, the provisions of section 26 or 26A of this Act notwithstanding, does not include the Board or a Generating Company" shall be substituted;

(d) after clause (8), the following clause shall be inserted,

namely: —

' (8A) "power system" means a system under the control of the Government or any Board or Generating Company or other agency and having one or more—

(i) generating stations; or (ii) main transmission lines and sub-stations; or (Hi) generating stations and* main transmission lines

and sub-stations;';

(e) in clause (9), for the words and figures "made under section

78", the words "made under this Act" shall be substituted;

(f) after clause (H), the following clauses shall be inserted,

namely: —

'(HA) "sub-station" means a station for transforming or converting electricity for the transmission or distribution thereof and Includes transformers, convertors, switchgear, capacitors, synchronous condensors, structures, cables and other appurte- nant equipments and any buildings used for that purpose and the site thereof, a site intended to be used for any such purpose and any buildings used for housing the staff of the sub-station;

(11B) "tie-line" means a line for the transfer of electricity between two power systems together with switchgear and other works necessary to, and used for, the control of such line;';

(g) in clause (13), after the words "the Board", the words "or a Generating Company" shall be inserted.

5. In section 3 of the principal Act,—

(1) in sub-section (1),—

Amend- ment of section 3.

(a) in clause (i), for the words "and particularly to co- ordinate the activities of the planning agencies", the words "formulate short-term and perspective plans for power deve- lopment and co-ordinate the activities of the planning agencies" shall be substituted;

(b) for clause (Hi), the following clause shall be substi- tuted, namely: —

"(in) collect and record the data concerning the gene- ration, distribution and utilisation of power and carry out studies relating to cost, efficiency, losses, benefits and such like matters;"; (c) after clause (iv), the following clauses shall be inserted, namely: —

"(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, Gene- rating Company or other agency owning or having the con- trol of another power system;

(vi) promote and assist in the timely completion of

schemes sanctioned under Chapter V;

(•mi) make arrangements for advancing the skill of.

persons in the generation and supply of electricity;

(viii) carry out, or make arrangements for, any investi- gation for the purpose of generating or transmitting elec- tricity;

(ix) promote research in matters affecting the genera- tion, 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 Autho- rity, the recommendation would help In improving the gene- ration, distribution and utilisation of electricity; and

(xi) discharge such other functions as may be entrusted to it by or under any other law.";

(2) in sub-section (2) t for the words "not more than six mem- bers", the words "not more than fourteen members of whom not more than eight shall be full-time members" shall be substituted;

(3) after sub-section (2), the following sub-section shall be inserted, namely: —

"(2A) A full-time member shall be a person who ha3 expe- rience of, and has shown capacity in,—

(a) design, construction, operation and maintenance of generating stations;

(b) transmission, and supply of electricity;

(c) applied research in the field of electricity;

(d) applied economics; or (e) industrial, commercial or financial matters.";

(4) in sub-section (3), for the words "one of the members", the

words "one of the full-time members" shall be substituted;

(5) after sub-section (4), the following sub-sections shall be

inserted, namely: —

"(4A) The Chairman of the Authority and the other full- time members shall receive such salaries and allowances as may be determined by the Central Government and the other mem- bers shall receive such allowances and fees for attending the meetings of the Authority, as the Central Government may prescribe.

(4B) The other terms and conditions of service of the mem- bers shall receive such allowances and fees for attending the sub-section (4), their terms of office] shall be such as the Cen- tral Government may prescribe.";

(6) in sub-section (5),—

(i) for the words "be directly or indirectly concerned or interested in or have any share or interest", the words "have any share or interest for his own benefit, whether in his own name or otherwise," shall be substituted¹;

(ii) for the words "fuel, solid or liquid, for the generation of electricity", the words "fuel, in whatever form, for the generation of electricity or in the manufacture of electrical equipment" shall be substituted;

(7) for sub-section (7), the following sub-sections shall be subs-

tituted, namely:—

" (7) The Chairman of the Authority may, by order, appoint any two or more members of the Authority to act on behalf of the Authority in relation to any matter referred to in clause (fi) of sub-section (2).

(8) No act or proceeding of the Authority shall be invalid marely on the ground of the existence of any vacancy in, or any defect in the constitution of, the Authority.".

6. In section 4 of the principal Act,—

Amend- ment of section 4.

(a) for the words "State Electricity Board", the words "State

Electricity Board, Generating Company" shall be substituted;

(b) after the words "or his own use", the words "or consuming

electricity" shall be inserted;

(c) for the word's "and returns", the words ", returns or other

information" shall be substituted.

7. After section 4 of the principal Act, the following sections shall be

inserted, namely: —

Insertion of new sections 4A, 4B and 4C.

"4A. (1) In the discharge of its functions, the Authority shall be guided by such directions in matters of policy involving public inte- rest as the Central Government may give to it in writing.

(2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.

Direc- tions by- Central Govern- ment to the Autho- rity.

4B. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.

Power of Central Govern- ment to make rules.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the follow- ing matters, namely: —

(c) the functions and duties of the Authority and the manner in which such functions and duties shall be exercised" and performed, under sub-section (1) of section 3;

(b) the terms and conditions of service of the Chairman and other members of the Authority (Including the allowances and fees payable to members, but not including the salaries and allowances payable to the Chairman and other full-time mem- bers, of the Authority) under sub-section (4A) and sub-section (4B) of section 3;

(c) any other matter which is required to be, or may be,

prescribed by the Central Government.

(3) Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and If, before the expiry of the session imme- diately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall there- after have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annul- ment shall be without prejudice to the validity of anything previ- ously done under that rule.

4C. The Authority may make regulations, not inconsistent with the provisions of this Act and the rules made by the Central Gov- ernment thereunder, to provide for all or any of the following matters, namely: —

Power of Autho- rity to make regula- tions.

(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 requir- ed to constitute a quorum;

(b) any other matter arising out of the functions of the Authority under this Act for which it is necessary or expedient to make regulations.".

8. In Chapter III of the principal Act, for the heading "STATE ELEC- THICITY BOARDS", the following heading shall be substituted, namely: —

"STATE ELECTRICITY BOARDS, GENERATING COMPANIES, STATE ELECTRICITY

CONSULTATIVE COUNCILS AND LOCAL ADVISORY COMMITTEES".

Substi- tution of new- heading for heading under Chapter IIL

9. After section 15 of the principal Act, the following section shall be

inserted, namely: —

Insertion of new section 15A.

"15A. (1) The Central Government or any State Government or the Central Government and one or more State Governments, or two or more State Governments¹, jointly may form a Generating Company with such name as may be specified in the memorandum of association of the company.

(2) The main objects of a Generating Company shall be—

Forma- tion, objects, jurisdic- tion, etc., of Gene- rating Com- panies.

(i) establishing, operating and maintaining generating stations and tie-lines, sub-stations and main transmission lines connected therewith;

(ii) operating and maintaining such generating stations, tie-lines, sub-stations and main transmission lines as are assigned to it by the Government or Governments forming the Generat- ing Company (hereinafter referred to as the promoting govern- ment) .

(3) The Generating Company shall carry on its activities within such areas as the promoting government or promoting governments may, from time to time, specify In this behalf.

(4) Such number of the members of the Board of directors of a

Generating Company as the promoting government thinks fit or, where there are more promoting governments than one, as may be agreed upon by such promoting governments, may be appointed as full-time members thereof.

(5) A full-time member of the Board of directors of a Generat- ing Company shall be a person who has experience of, and has shown capacity in,—

(a) design, construction, operation and maintenance of

generating stations;

(b) transmission and supply of electricity;

(c) applied economics;

(d) organising workers; (e) industrial, commercial or financial matters; or

(f) administration in a Government Department or other

establishment.

(6) The provisions of section 9 shall, so far as may be, apply to every member of the Board of directors of a Generating Company as they apply to a member of the Board.

1 of 1996.

(7) A company within the meaning of section 3 of the Companies Act, 1956, formed before the commencement of the Electricity (Sup- ply) Amendment Ordinance, 1976, by the Central Government or any State Government or the Central Government and one or more State Governments, or two or more State Governments, jointly and func- tioning on such commencement, having as its main objects all or any of the matters specified in subjection (2), shall be deemed, for all purposes, to be a Generating Company under this Act.".

10. In section 16 of the principal Act,—

Amend- ment of section 16.

(1) in sub-section (2), for the words "the members of the Board", the words "the members of the Board and, if there are any Generating Company or Generating Companies operating in the State, one representative of the Generating Company or each of the Gene- rating Companies, to be nominated by the Generating Company con- cerned," shall be substituted;

(2) in sub-section (5),—

(a) in clause (i) and clause (ii), for the words "the Board⁷', the words "the Board and the Generating Company or Generating Companies, if any, operating in the State" shall be substituted;

(b) in clause (in), for the words "the Board", the words "the Board or the Generating Company or Generating Companies, If any, operating in the State" shall be substituted.

1,1. In Chapter IV of the principal Act, in the heading, for the words "STATE ELECTHICITY BOARDS", the words "STVTE ELECTRICITY BOARDS AND GENERATING COMPANIES" shall be substituted.

Amend- ment of heading under Chapter IV.

12. For section 18 of the principal Act, the following sections shall be

substituted, namely: —

Substitu- tion of new sections tor sec- tion 18.

"18. Subject to the provisions of this Act, the Board shall be

charged with the following general duties, namely: —

General duties of the Board.

(a) to arrange, in co-ordination with the Generating Company or Generating Companies, if any, operating in the State, for the supply of electricity that may be required within the State and for the transmission and distribution of the same, in the most efficient and economical manner with particular reference to those atreas which are not for the time being supplied or adequately supplied with electricity;

(b) to supply electricity as soon as practicable to a licensee or other person requiring such supply if the Board is competent under this Act so to do;

(c) to exercise such control in relation to the generation, distribution and utilisation of electricity within the State as Is provided for by or under this Act;

(d) to collect data on the demand for, and the use of, elec- tricity and to formulate perspective plans in co-ordination with the Generating Company or Generating Companies, if any, operat- ing in the State, for the generation, transmission and supply of electricity within the State;

(e) to prepare and carry out schemes for transmission, dis- tribution and generally for promoting the use of electricity within the State; and

(f) to operate the generating stations under its control in co-ordination with the Generating Company or Generating Com- panies, if any, operating in the State and¹ with the Government or any other Board or agency having control over a power system.

18A. (2) Subject to the provisions of this Act, a Generating Company shall be charged with the following duties, namely: —

Duties of Generat- ing Com- pany,

(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 promoting government or promoting governments in relation to the Generating Company;

(b) to operate and maintain in the most efficient and economi- cal manner the generating stations, tie-lines, sub-stations and main transmission lines, assigned to it by the promoting govern- ment or promoting 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 there- with; and

(c) to carry out, subject to the provisions of section 21, de- tailed investigations and prepare schemes, in co-ordination with the Board or Boards, as the casei may be, for establishing generat- ing stations and tie-lines, sub-stations and transmission lines con- nected therewith, in such manner as may be specified by the Authority,

(2) Without prejudice to the generality of its duties under sec- tion 18, the Board shall, until a Generating Company begins to operate in any State, perform the duties of a Generating Company under this section in that State.".

13. For section 20A of the principal Act, the following section shall be substituted, namely: —

Substitu- tion of new sec- tion for section 20A.

Leasing out, etc., of gene- rating stations.

"20A. The State Government may, in respect of any generating station owned by it (including transmission lines and other works connected therewith) make arrangements with the Board or a Generating Company for its operation and maintenance on such terms and conditions as may be agreed upon between the State Government and the Board or the Generating Company, as the case may be.".

14. In section 21 of the principal Act, in the opening paragraph,—

(a) for the words "The Board may", the words "The Board or a Generating Company may" shall be substituted;

Amend- ment of section 21.

(b) for the words "in the opinion off the Board", the words "in the opinion of the Board or the Generating Company, as the case may be," shall be substituted;

(c) the words "and in such manner as the Authority may, from time to time, specify" shall be inserted at the end.

15. After section 26 of the principal Act, the following section shall be inserted, namely: —

Insertion of new section 26A.

9 of 1910.

"26A. (1) Notwithstanding anything contained in sub-section (2), nothing in the Indian, Electricity Act, 1910, shall be deemed to require a Generating Company to take out a licence under that Act, or to obtain sanction of the State Government for the purpose of carrying on any of its activities.

Applica- bility of the provi- sions of Act 9 of 1910 to Generat- ing Com- pany.

9 of 1910.

(2) Subject to the provisions of this Act, sections 12 to 19 (both inclusive) of the Indian Electricity Act, 1910 and clauses XIV to XVII (both inclusive) of the Schedule thereto, shall, as far as may be, apply in relation to a Generating Company as they apply in re- lation to a licensee under that Act (hereafter in this section referred to as the licensee) and in particular a Generating Company may, in connection with the performance of its duties, exercise—

9 of 1910.

(a) all or any of the powers conferred on a licensee by sub- section (1) of section 12 of the Indian Electricity Act, 1910, as if—

(i) the reference therein to licensee were a reference to

the Generating Company;

(ii) the reference to the terms and conditions of licence were a reference to the provisions of this Act and to) the articles of association of the Generating Company; and

(Hi) the reference to the area of supply were a reference to the area specified under sub-section (3) of section 15A in relation to the Generating Company;

9 of 1910.

(b) all or any of the powers conferred on a licensee by sub- section (1) of section 14 of the Indian Electricity Act, 1910, as if—

(i) the references therein to licensee were references to the Generating Company; and

(il) the Generating Company had the powers of a licen- see under the said Act.

Oof 1010.

(3) The provisions of section 30 of the Indian Electricity Act, 1910, shall not apply to the transmiwion or UM of energy by a Generating Company.

(4) For tha ramoval of doubts, It ia hereby daclarad that MtftionJ

9 Of 1010.

81 to 84 (both inclusive) of the Indian Electricity Act, 191*), shall apply to a Generating Company.",

IB. In section H7 of the principal Act; fdr the Wards 'The Be)afd;), the Words "The Board or a Generating Company" shall be¹ substituted

Amend* nieilt of a^etioii 21

17. In Chapter V of the principal Act, for the heading, the following

heading shall be substituted, namely:—-

"THE WORKS AND TRADING PROCEDURE OF THE BOARD AND THE

GENERATING COMPANY".

Substitu- tion of new head- ing for heading under Chapter V.

18. For sections 28 and 29 of the principal Act, the following sections

shall be substituted, namely: —

Substitu- tion of new sec- tions for section^ 28 and 29.

Prepara- tion and sanction- ing of scheme.

"28.(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 (I) of section 18A, as the case may be.

(2) The Board or, as the case may be, the Generating Company which has prepared a scheme may, sanction such scheme either gene- rally or in respect of any part of the area specified in the scheme and where a scheme has been sanctioned in respect of any part of the area, such scheme may subsequently be sanctioned in respect of any other part of that area:

Provided that where the scheme is of the nature referred to in sub-section (I) of section 29, the scheme shall not be sanctioned (generally or for part of an area) by the Board or the Generating Company except with the previous concurrence of the Authority.

(3) Every scheme sanctioned under this section shall be pub- lished in the Official Gazette and in such local newspapers' as the Board or, as the case may be, the Generating Company may consider necessary.

29. (2) Every scheme estimated to Involve a capital expenditure exceeding one crore of rupees shall, as soon as may be after its pre- paration, be submitted to the Authority fojr its concurrence.

Submis- sion of schemes for con- currence of Autho- rity, etc.

(2) Before finalisatlon oi any scheme of the nature referred to in sub-section (1) and the submission thereof to the Authority for concurrence, the Board OJT, as the case may be, the Generating Com- pany shall cause such scheme, which among other things shall con- tain the estimates of the capital expenditure involved, salient features thereof end the benefits that may accrue therefrom, to be published In the Official Gazette of the State concerned and in such local news- paper* as the Board or the Generating Company may consider neces- sary along with a notice of the date, not being less than two months after the date of such publication, before which licensees and other persons interested may make representations on such scheme.

(3) The Board or, as the case may be, the Generating Company may, after considering the representations, if any, that may have been received by it and after making such inquiries as it thinks fltj

modify the scheme and the scheme so finally prepared (with or with- out modifications) shall be submitted by it to the Authority along with the representations.

(4) A copy of the scheme finally prepared by the Board or, as the case may be, the Generating Company under sub-section (3) shall be forwarded to the State Government or State Governments concerned:

Provided that where the scheme has been prepared by a Gene- rating Company in relation to which the Central Government is the promoting government or one of the promoting governments, a copy of the scheme finally prepared shall be forwarded also to the Central Government.

(5) The Authority may give such directions as to the form and contents of a scheme and the procedure to be followed in, and any other matter relating to, the preparation, submission and approval of such scheme, as it may think fit.

(6) In] respect of any scheme submitted to the Authority for its concurrence under sub-section (1), the Board or, as the case may be, the Generating Company shall, if required by the Authority so to do, supply any information incidental or supplementary to the scheme within such period, being not less than one month, as may be speci- fied by the Authority.".

19. In section 30 of the principal Act,—

Amend- ment of section 30.

(a) for the opening paragraph, the following shall be substituted, namely: —

"The Authority shall, before concurring in any scheme sub- mitted to it under sub-section (1) of section 29, have particular regard to, whether or not in its opinion—";

(b) in clause (a),—

(i) >the words "by the Board" shall be omitted;

(ii) for the words "shall satisfy itself", the words "shall satisfy itself, after consultation with the State Government, the Central Government, or such other agencies as it may deem appropriate," shall be substituted;

(c) after clause (e), the following clauses shall be inserted, namely: —

"(/) in the case of a scheme in respect of thermal power generation, the location of the generating station is best suited to the: region, taking into account the optimum! utilisation of fuel resources, the distance of load centre, transportation facilities, water availability and environmental considerations;

(gr) the scheme conforms to any other technical, economic or other criteria laid down by the Authority in accordance with the national power policy evolved by it in pursuance of the pro- Visions contained in clause (?) of sub-section (I) of section 3.",

20. For sections 31, 32 and 33 of the principal Act, the following sec-

tions shall be substituted, namely: —

Substi- tution of new sections for sec- tions 31, 32 and 33.

Concur- rence of Autho- rity to scheme submitted to it by Board or Generat- ing Com- pany.

"31. (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 communi- cate 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 Govern- ment is the promoting Government or one of the promoting Govern- ments, the decision shall be communicated also to that Government.

(2) Where under subjection (1) the Authority requires that a scheme may be modified, the Board or, as the case may be, the Gene- rating Company may prepare a revised scheme in accordance with such requisition and submit it to the Authority for concurrence and thereupon the Authority shall, if satisfied that the revised scheme complies with the requisition, concur in the same.

32. The Board or, as the case may be, the Generating Company may, from time to time, alter or extend a scheme by a supplemen- tary scheme prepared in the manner specified in section 31:

Power to alter or extend schemes.

Provided that any alterations or extensions of a scheme which are, in the opinion of the Board or, as the case may be, the Generat- ing 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 after¹ such alteration or extension is made.

33. 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.".

Provi- sions applica- ble to scheme prepared by State Govern- ment,

21. Section 34 of the principal Act shall be re-numbered as sub- section (I) thereof and after sub-section (1) as so re-numbered the following sub-section shall be inserted, namely: —

Amend- ment of section 34,

" (2) Notwithstanding anything contained in this Act ir any scheme made thereunder, no generating station owned by a Generat- ing Company shall be designated as a controlled station.".

22. Section 38 of the principal Act shall be omitted.

Omission of sec- tion 38.

23. Section 39 of the principal Act shall be re-numbered as sub- section (1) thereof and after sub-section (1) as so re-numbered the fol- lowing sub-section shall be inserted, namely: —

Amend- ment of section 39.

"(2) Where a Generating Company has been established having its activities wholly or partly in a State, the State Government may direct the Board to make over any generating station established or acquired by the Board to the Generating Company subject to such terms and conditions as may be specified in the direction and the Board shall comply with such direction:

Provided that where the Central Government is the promoting government or one of the promoting governments in relation to the Generating Company, no direction shall be made by any State Gov- ernment under this sub-Section without the concurrence of the Cen- tral Government.".

24. In section 41 of the principal Act,—

Amend- ment of section 41.

(a) in sub-section (1), for the words "the Board", wherever they occur, the words "the Board or a Generating Company" shall be substituted;

(b) in sub-section (2), for the words "The Board may", the words "The Board or a Generating Company may" shall be substi- tuted.

25. Section 42 of the principal Act shall be re-numbered as sub-section (1) thereof and after sub-section (!) as so re-numbered the following sub-section shall be inserted, namely: —

Amend- ment of section 42.

" (2) A Generating Company may, for the placing of wiresi, poles, wall-brackets, stays, apparatus and appliances for the transmission of electricity, or for the transmission of telegraphic or telephonic communications necessary for the proper co-ordination of the works of the Generating Company, exercise all or any of the powers which the Board may exercise under sub-section (i) and subject to the con- ditions referred to therein.".

26. In section 43 of the principal Act, after sub-section (2), the fol-

lowing sub-section shall be inserted, namely: —

Amend- ment of section 43.

"(3) A Generating Company may, on such terms as may be

agreed upon, enter into arrangements for the sale of electricity ge- nerated by it—

(a) with the Board constituted for the State or any of the

States wherein such Generating Company is operating; cr

(b) with any other person with the consent of the Govern- ment or Governments which, in relation to that Generating Company, is the promoting government or promoting govern- ments .".

27. In section 44 of the principal Act,—

Amend- ment of section 44,

(a) in sub-section (1), in the opening paragraph, after the words "created by a Central Act", the words "or any Generating Com- pany" shall be inserted;

(b) after sub-section (2), the following sub-section shall be in-

serted, namely: —

"(2A) The Board shall, before giving consent under sub- section (1), to the establishment or acquisition of a new gene- rating station or to the extension or replacement of any major unit of plant or works, consult the Authority, in cases where the capacity of the new generating station or, as the case may be, the additional capacity proposed to be created by the extension or replacement exceeds twenty-five thousand kilowatts.".

28. In section 72 of the principal Act,—

(a) for the words "the Board", the words "the Board or a Gene-

Amend- ment of section 72.

rating Company" shall be substituted;

(b) for the words "or that the Board is unable so to develop", the words "or the Generating Company so to develop" shall be subs- tituted.

29. In section 73 of the principal Act, for the words "the Board shall :o-ordinate its activities", the words "the Board and the Generating Com- pany shall co-ordinate their activities" shall be substituted.

Amend- m'ent of section 73.

30. In section 74 of the principal Act,—

(a) for the words "servant of the Board", the words "servant

Amend- ment of section 74.

of the Board or of a Generating Company" shall be substituted;

(b) for the words "authorised by the Board", the words "autho- rised by the Board or by the Generating Company, as the case may be," shall be substituted;

(c) for the words "duties by the Board", the words "duties by the Board or by the Generating Company, as the case may be," shall be substituted.

31. In section 75 of the principal Act, in subjection (3) ,—

(a) for the words "or person", the words "or person or agency"

shall be substituted;

Amend- ment ot section 75.

(fa) the following proviso shall be inserted at the end, namely: —

"Provided that nothing in this sub-section shall be deemed to empower the Board to require a Generating Company to fur- nish it with any information or accounts.".

32. After section 75 of the principal Act, the following section shall

be inserted, namely: —

Inser- tion oi new section 75A.

Annual reports and accounts of Gene- rating Company, "75A. (1) A Generating Company shall, before the expiry ol the 31st December of each year, submit to the promoting govern- ment, or where there are more than one promoting government to all such promoting governments, a report giving an account of the activities, if any, which are likely to be undertaken by such Gene- rating Company in the ensuing year together with a statement of the estimated capital and revenue receipts and expenditure for that year in such form as may be specified by the promoting gov- ernment or, as the case may be( the promoting governments.

(2) A Generating Company shall, as soon as may be after the end of each year, prepare a report giving an account of its activities during the previous year and shall, within six months from the date of closure of the year, forward to the promoting government, or where there are more than one promoting government, to all such promoting governments, the report together with a statement of accounts, in such form and containing such particulars as may be specified by the promoting government or the promoting govern- ments, as the case may be, a copy of the balance sheet and profit and loss account and the auditor's report, in relation to the accounts of the year aforesaid.

(3) For the purpose of preparing the statement of accounts referred to in sub-section (2), the depreciation to be provided every year shall be calculated in accordance with the same method as laid down by or under this Act for calculating depreciation in relation to the Board.

1 of 1958.

(4) The provisions of sub-sections (2) and (2) shall be in addition to and not in derogation of the provisions contained in the Companies Act, 1956, in relation to reports, statement of accounts and other documents required to be prepared or kept or submitted by a company within the meaning of section 3 of that Act.",

33. In the Fifth Schedule to the principal Act,—

(0) in the heading, for the words "BY BOARD", the words "BY

BOARD OR GENERATING COMPANY" shall be substituted;

Amend- ment of Fifth Soheffule.

(b) In paragraph I and paragraph II, for the words "the Board",

wherever they occur, the words "the Board or the Generating Com-

pany" shall be substituted.

Aihend- ment oi Sixth 34 In the Sixth Schedule id the principal Act, in paragraph II, after BuB-paragraph (3), the following sub-paragraph shall be inserted^ hamely: —

"(4) On the purchase of the undertaking after the expiry.

or on the revocation, of its licence or otherwise, all amounts of rebate lying undistributed to the consumers on the date of such purchase shall be handed over to the purchaser who, in turn, shall enter the same in his books of account, under the heading Con- sumers' Rebate Reserve and any amount lying undistributed in that Reserve shall be carried forward for distribution to the con- sumer concerned:

Provided that the share of money in the Consumers' Rebate Reserve payable to the consumers who are not traceable or who have ceased to be consumers in relation to that undertaking, may be utilised in the development works of the purchaser.".

FAKHRUDDIN ALI AHMED,

Pres dent.

K. K SUNDARAM,

Secy, to the Govt. 0/ India

CORRIGENDUM

In the Advocates (Amendment) Act, 1976 (107 of 1976) as published in the Gazette of India, Extraordinary, Part II, Section 1, dated the 13th September, 1976: —

At page 1367 in the title of the Act jor "1961" read "1976".

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OP INDIA PWhS, M1N1O ROAD,

NEW DELHI AND PUBLISHED BV THE CONTROLLER OF PUBI 1CATIONS, DtLHI, 1 9 76