|Generation of Electricity
GENERATION OF ELECTRICITY
Generating Company and requirement for setting up of generating
7. Any generating company may establish, operate and
maintain a generating station without obtaining a licence under this Act
if it complies with the technical standards relating to connectivity with
the grid referred to in clause (b) of section 73.
- Notwithstanding anything contained in section 7, any generating company
intending to set-up a hydro-generating station shall prepare and submit
to the Authority for its concurrence, a scheme estimated to involve
a capital expenditure exceeding such sum, as may be fixed by the Central
Government, from time to time, by notification.
- The Authority shall, before concurring in any scheme submitted to
it under sub-section (1) have particular regard to, whether or not in
- the proposed river-works will prejudice the prospects for the best
ultimate development of the river or its tributaries for power generation,
consistent with the requirements of drinking water, irrigation, navigation,
flood-control, or other public purposes, and for this purpose the
Authority shall satisfy itself, after consultation with the State
Government, the Central Government, or such other agencies as it may
deem appropriate, that an adequate study has been made of the optimum
location of dams and other river-works;
- the proposed scheme meets, the norms regarding dam design and safety.
- Where a multi-purpose scheme for the development of any river in
any region is in operation, the State Government and the generating
company shall co-ordinate their activities with the activities of the
person responsible for such scheme in so far as they are inter-related.
- Notwithstanding anything contained in this Act, a person may construct,
maintain or operate a captive generating plant and dedicated transmission
lines: Provided that the supply of electricity from the captive generating
plant through the grid shall be regulated in the same manner as the
generating station of a generating company.
- Every person, who has constructed a captive generating plant and
maintains and operates such plant, shall have the right to open access
for the purposes of carrying electricity from his captive generating
plant to the destination of his use: Provided that such open access
shall be subject to availability of adequate transmission facility and
such availability of transmission facility shall be determined by the
Central Transmission Utility or the State Transmission Utility, as the
case may be: Provided further that any dispute regarding the availability
of transmission facility shall be adjudicated upon by the Appropriate
Direction to generating companies
- Subject to the provisions of this Act, the duties of a generating
company shall be to establish, operate and maintain generating stations,
tie-lines, sub-stations and dedicated transmission lines connected therewith
in accordance with the provisions of this Act or the rules or regulations
- A generating company may supply electricity to any licensee in accordance
with this Act and the rules and regulations made thereunder and may,
subject to the regulations made under sub-section (2) of section 42,
supply electricity to any consumer.
- Every generating company shall
- submit technical details regarding its generating stations to the
Appropriate Commission and the Authority;
- co-ordinate with the Central Transmission Utility or the State
Transmission Utility, as the case may be, for transmission of the
electricity generated by it.
- The Appropriate Government may specify that a generating company
shall, in extraordinary circumstances operate and maintain any generating
station in accordance with the directions of that Government. Explanation.
- For the purposes of this section, the expression “ extraordinary circumstances”
means circumstances arising out of threat to security of the State,
public order or a natural calamity or such other circumstances arising
in the public interest.
- The Appropriate Commission may offset the adverse financial impact
of the directions referred to in sub-section (1) on any generating company
in such manner as it considers appropriate.