3. National Electricity Policy and Plan.—(1) The Central Government shall, from time to time,
prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and
the Authority for development of the power system based on optimal utilisation of resources such as coal,
natural gas, nuclear substances or materials, hydro and renewable sources of energy.
(2) The Central Government shall publish National Electricity Policy and tariff policy from time to
time.
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(3) The Central Government may, from time to time, in consultation with the State Governments and
the Authority, review or revise the National Electricity Policy and tariff policy referred to in
sub-section (1).
(4) The Authority shall prepare a National Electricity Plan in accordance with the National Electricity
Policy and notify such plan once in five years:
Provided that the Authority while preparing the National Electricity Plan shall publish the draft
National Electricity Plan and invite suggestions and objections thereon from licensees, generating
companies and the public within such time as may be prescribed:
Provided further that the Authority shall—
(a) notify the plan after obtaining the approval of the Central Government;
(b) revise the plan incorporating therein the directions, if any, given by the Central Government
while granting approval under clause (a).
(5) The Authority may review or revise the National Electricity Plan in accordance with the National
Electricity Policy.
4. National policy on stand alone systems for rural areas and non-conventional energy
systems.—The Central Government shall, after consultation with the State Governments, prepare and
notify a national policy, permitting stand alone systems (including those based on renewable sources of
energy and other non-conventional sources of energy) for rural areas.
5. National policy on electrification and local distribution in rural areas.—The Central
Government shall also formulate a national policy, in consultation with the State Governments and the
State Commissions, for rural electrification and for bulk purchase of power and management of local
distribution in rural areas through Panchayat Institutions, users’ associations, co-operative societies,
non-Governmental organisations or franchisees.
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[6. Joint responsibility of State Government and Central Government in rural
electrification.—The concerned State Government and the Central Government shall jointly endeavour
to provide access to electricity to all areas including villages and hamlets through rural electricity
infrastructure and electrification of households.]