25. Inter-State, regional and inter-regional transmission.—For the purposes of this Part, the
Central Government may, make region-wise demarcation of the country, and, from time to time, make
such modifications therein as it may consider necessary for the efficient, economical and integrated
transmission and supply of electricity, and in particular to facilitate voluntary inter-connections and
co-ordination of facilities for the inter-State, regional and inter-regional generation and transmission of
electricity.
26. National Load Despatch Centre.—(1) The Central Government may establish a Centre at the
national level, to be known as the National Load Despatch Centre for optimum scheduling and despatch
of electricity among the Regional Load Despatch Centres.
(2) The constitution and functions of the National Load Despatch Centre shall be such as may be
prescribed by the Central Government:
Provided that the National Load Despatch Centre shall not engage in the business of trading in
electricity.
(3) The National Load Despatch Centre shall be operated by a Government company or any authority
or corporation established or constituted by or under any Central Act, as may be notified by the Central
Government.
27. Constitution of Regional Load Despatch Centre.—(1) The Central Government shall establish
a Centre for each region to be known as the Regional Load Despatch Centre having territorial jurisdiction
as determined by the Central Government in accordance with section 25 for the purposes of exercising the
powers and discharging the functions under this Part.
(2) The Regional Load Despatch Centre shall be operated by a Government company or any authority
or corporation established or constituted by or under any Central Act, as may be notified by the Central
Government:
Provided that until a Government company or authority or corporation referred to in this sub-section
is notified by the Central Government, the Central Transmission Utility shall operate the Regional Load
Despatch Centre:
Provided further that no Regional Load Despatch Centre shall engage in the business of generation of
electricity or trading in electricity.
28. Functions of Regional Load Despatch Centre.—(1) The Regional Load Despatch Centre shall
be the apex body to ensure integrated operation of the power system in the concerned region.
(2) The Regional Load Despatch Centre shall comply with such principles, guidelines and
methodologies in respect of wheeling and optimum scheduling and despatch of electricity as the Central
Commission may specify in the Grid Code.
(3) The Regional Load Despatch Centre shall—
(a) be responsible for optimum scheduling and despatch of electricity within the region, in
accordance with the contracts entered into with the licensees or the generating companies operating in
the region;
(b) monitor grid operations;
(c) keep accounts of quantity of electricity transmitted through the regional grid;
24
(d) exercise supervision and control over the inter-State transmission system; and
(e) be responsible for carrying out real time operations for grid control and despatch of electricity
within the region through secure and economic operation of the regional grid in accordance with the
Grid Standards and the Grid Code.
(4) The Regional Load Despatch Centre may levy and collect such fee and charges from the
generating companies or licensees engaged in inter-State transmission of electricity as may be specified
by the Central Commission.
29. Compliance of directions.—(1) The Regional Load Despatch Centre may give such directions
and exercise such supervision and control as may be required for ensuring stability of grid operations and
for achieving the maximum economy and efficiency in the operation of the power system in the region
under its control.
(2) Every licensee, generating company, generating station, sub-station and any other person
connected with the operation of the power system shall comply with the directions issued by the Regional
Load Despatch Centres under sub-section (1).
(3) All directions issued by the Regional Load Despatch Centres to any transmission licensee of State
transmission lines or any other licensee of the State or generating company (other than those connected to
inter-State transmission system) or sub-station in the State shall be issued through the State Load
Despatch Centre and the State Load Despatch Centres shall ensure that such directions are duly complied
with by the licensee or generating company or sub-station.
(4) The Regional Power Committee in the region may, from time to time, agree on matters
concerning the stability and smooth operation of the integrated grid and economy and efficiency in the
operation of the power system in that region.
(5) If any dispute arises with reference to the quality of electricity or safe, secure and integrated
operation of the regional grid or in relation to any direction given under sub-section (1), it shall be
referred to the Central Commission for decision:
Provided that pending the decision of the Central Commission, the directions of the Regional Load
Despatch Centre shall be complied with by the State Load Despatch Centre or the licensee or the
generating company, as the case may be.
(6) If any licensee, generating company or any other person fails to comply with the directions issued
under sub-section (2) or sub-section (3), he shall be liable to a penalty not exceeding rupees fifteen lacs.
Intra-State transmission
30. Transmission within a State.—The State Commission shall facilitate and promote transmission,
wheeling and inter-connection arrangements within its territorial jurisdiction for the transmission and
supply of electricity by economical and efficient utilisation of the electricity.
31. Constitution of State Load Despatch Centres.—(1) The State Government shall establish a
Centre to be known as the State Load Despatch Centre for the purposes of exercising the powers and
discharging the functions under this Part.
(2) The State Load Despatch Centre shall be operated by a Government company or any authority or
corporation established or constituted by or under any State Act, as may be notified by the State
Government:
Provided that until a Government company or any authority or corporation is notified by the State
Government, the State Transmission Utility shall operate the State Load Despatch Centre:
Provided further that no State Load Despatch Centre shall engage in the business of trading in
electricity.
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32. Functions of State Load Despatch Centres.—(1) The State Load Despatch Centre shall be the
apex body to ensure integrated operation of the power system in a State.
(2) The State Load Despatch Centre shall—
(a) be responsible for optimum scheduling and despatch of electricity within a State, in
accordance with the contracts entered into with the licensees or the generating companies operating in
that State;
(b) monitor grid operations;
(c) keep accounts of the quantity of electricity transmitted through the State grid;
(d) exercise supervision and control over the intra-State transmission system; and
(e) be responsible for carrying out real time operations for grid control and despatch of electricity
within the State through secure and economic operation of the State grid in accordance with the Grid
Standards and the State Grid Code.
(3) The State Load Despatch Centre may levy and collect such fee and charges from the generating
companies and licensees engaged in intra-State transmission of electricity as may be specified by the
State Commission.
33. Compliance of directions.—(1) The State Load Despatch Centre in a State may give such
directions and exercise such supervision and control as may be required for ensuring the integrated grid
operations and for achieving the maximum economy and efficiency in the operation of power system in
that State.
(2) Every licensee, generating company, generating station, sub-station and any other person
connected with the operation of the power system shall comply with the directions issued by the State
Load Depatch Centre under sub-section (1).
(3) The State Load Despatch Centre shall comply with the directions of the Regional Load Despatch
Centre.
(4) If any dispute arises with reference to the quality of electricity or safe, secure and integrated
operation of the State grid or in relation to any direction given under sub-section (1), it shall be referred to
the State Commission for decision:
Provided that pending the decision of the State Commission, the directions of the State Load
Despatch Centre shall be complied with by the licensee or generating company.
(5) If any licensee, generating company or any other person fails to comply with the directions issued
under sub-section (1), he shall be liable to a penalty not exceeding rupees five lacs.
Other provisions relating to transmission
34. Grid Standards.—Every transmission licensee shall comply with such technical standards, of
operation and maintenance of transmission lines, in accordance with the Grid Standards, as may be
specified by the Authority.
35. Intervening transmission facilities.—The Appropriate Commission may, on an application by
any licensee, by order require any other licensee owning or operating intervening transmission facilities to
provide the use of such facilities to the extent of surplus capacity available with such licensee:
Provided that any dispute, regarding the extent of surplus capacity available with the licensee, shall be
adjudicated upon by the Appropriate Commission.
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36. Charges for intervening transmission facilities.—(1) Every licensee shall, on an order made
under section 35, provide his intervening transmission facilities at rates, charges and terms and conditions
as may be mutually agreed upon:
Provided that the Appropriate Commission may specify rates, charges and terms and conditions if
these cannot be mutually agreed upon by the licensees.
(2) The rates, charges and terms and conditions referred to in sub-section (1) shall be fair and
reasonable, and may be allocated in proportion to the use of such facilities.
Explanation.—For the purposes of sections 35 and 36, the expression “intervening transmission
facilities” means the electric lines owned or operated by a licensee where such electric lines can be
utilised for transmitting electricity for and on behalf of another licensee at his request and on payment of a
tariff or charge.
37. Directions by Appropriate Government.—The Appropriate Government may issue directions
to the Regional Load Despatch Centres or State Load Despatch Centres, as the case may be, to take such
measures as may be necessary for maintaining smooth and stable transmission and supply of electricity to
any region or State.
38. Central Transmission Utility and functions.—(1) The Central Government may notify any
Government company as the Central Transmission Utility:
Provided that the Central Transmission Utility shall not engage in the business of generation of
electricity or trading in electricity:
Provided further that the Central Government may transfer, and vest any property, interest in
property, rights and liabilities connected with, and personnel involved in transmission of electricity of
such Central Transmission Utility, to a company or companies to be incorporated under the Companies
Act, 1956 (1 of 1956) to function as a transmission licensee, through a transfer scheme to be effected in
the manner specified under Part XIII and such company or companies shall be deemed to be transmission
licensees under this Act.
(2) The functions of the Central Transmission Utility shall be—
(a) to undertake transmission of electricity through inter-State transmission system;
(b) to discharge all functions of planning and co-ordination relating to inter-State transmission
system with–
(i) State Transmission Utilities;
(ii) Central Government;
(iii) State Governments;
(iv) generating companies;
(v) Regional Power Committees;
(vi) Authority;
(vii) licensees;
(viii) any other person notified by the Central Government in this behalf;
(c) to ensure development of an efficient, co-ordinated and economical system of inter-State
transmission lines for smooth flow of electricity from generating stations to the load centres;
(d) to provide non-discriminatory open access to its transmission system for use by—
(i) any licensee or generating company on payment of the transmission charges; or
27
(ii) any consumer as and when such open access is provided by the State Commission under
sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as
may be specified by the Central Commission:
Provided that such surcharge shall be utilised for the purpose of meeting the requirement of
current level cross-subsidy:
Provided further that such surcharge and cross subsidies shall be progressively reduced 1*** in
the manner as may be specified by the Central Commission:
2* * * * *
Provided also that the manner of payment and utilisation of the surcharge shall be specified by the
Central Commission:
Provided also that such surcharge shall not be leviable in case open access is provided to a person
who has established a captive generating plant for carrying the electricity to the destination of his own
use.
39. State Transmission Utility and functions.—(1) The State Government may notify the Board or
a Government company as the State Transmission Utility:
Provided that the State Transmission Utility shall not engage in the business of trading in electricity:
Provided further that the State Government may transfer, and vest any property, interest in property,
rights and liabilities connected with, and personnel involved in transmission of electricity, of such State
Transmission Utility, to a company or companies to be incorporated under the Companies Act, 1956
(1 of 1956) to function as transmission licensee through a transfer scheme to be effected in the manner
specified under Part XIII and such company or companies shall be deemed to be transmission licensees
under this Act.
(2) The functions of the State Transmission Utility shall be—
(a) to undertake transmission of electricity through intra-State transmission system;
(b) to discharge all functions of planning and co-ordination relating to intra-State transmission
system with—
(i) Central Transmission Utility;
(ii) State Governments;
(iii) generating companies;
(iv) Regional Power Committees;
(v) Authority;
(vi) licensees;
(vii) any other person notified by the State Government in this behalf;
(c) to ensure development of an efficient, co-ordinated and economical system of intra-State
transmission lines for smooth flow of electricity from a generating station to the load centers;
(d) to provide non-discriminatory open access to its transmission system for use by—
(i) any licensee or generating company on payment of the transmission charges; or
1. The words “and eliminated” omitted by Act 26 of 2007, s. 4 (w.e.f. 15-6-2007).
2. The third proviso omitted by s. 4, ibid. (w.e.f. 15-6-2007).
28
(ii) any consumer as and when such open access is provided by the State Commission under
sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as
may be specified by the State Commission:
Provided that such surcharge shall be utilised for the purpose of meeting the requirement of
current level cross-subsidy:
Provided further that such surcharge and cross subsidies shall be progressively reduced 1***
in the manner as may be specified by the State Commission:
2* * * * *
Provided also that the manner of payment and utilisation of the surcharge shall be specified by the
State Commission:
Provided also that such surcharge shall not be leviable in case open access is provided to a person
who has established a captive generating plant for carrying the electricity to the destination of his own
use.
40. Duties of transmission licensees.—It shall be the duty of a transmission licensee–
(a) to build, maintain and operate an efficient, co-ordinated and economical inter-State
transmission system or intra-State transmission system, as the case may be;
(b) to comply with the directions of the Regional Load Despatch Centre and the State Load
Despatch Centre as the case may be;
(c) to provide non-discriminatory open access to its transmission system for use by—
(i) any licensee or generating company on payment of the transmission charges; or
(ii) any consumer as and when such open access is provided by the State Commission under
sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as
may be specified by the State Commission:
Provided that such surcharge shall be utilised for the purpose of meeting the requirement of current
level cross-subsidy:
Provided further that such surcharge and cross subsidies shall be progressively reduced 3*** in the
manner as may be specified by the Appropriate Commission:
1. The words “and eliminated” omitted by Act 26 of 2007, s. 5 (w.e.f. 15-6-2007).
2. The third proviso omitted by s. 5, ibid. (w.e.f. 15-6-2007).
3. The words “and eliminated” omitted by s. 6, ibid. (w.e.f. 15-6-2007).
29
1* * * * *
Provided also that the manner of payment and utilisation of the surcharge shall be specified by the
Appropriate Commission:
Provided also that such surcharge shall not be leviable in case open access is provided to a person
who has established a captive generating plant for carrying the electricity to the destination of his own
use.
41. Other business of transmission licensee.—A transmission licensee may, with prior intimation to
the Appropriate Commission, engage in any business for optimum utilisation of its assets:
Provided that a proportion of the revenues derived from such business shall, as may be specified by
the Appropriate Commission, be utilised for reducing its charges for transmission and wheeling:
Provided further that the transmission licensee shall maintain separate accounts for each such
business undertaking to ensure that transmission business neither subsidises in any way such business
undertaking nor encumbers its transmission assets in any way to support such business:
Provided also that no transmission licensee shall enter into any contract or otherwise engage in the
business of trading in electricity.