Section 37 of THE ELECTRICITY ACT, 2003

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. (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 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.

1. (2)The functions of the Central Transmission Utility shall be -
   1. (a)to undertake transmission of electricity through inter-State transmission system;
   2. (b)to discharge all functions of planning and co-ordination relating

to inter-state transmission system with -

1. (i)State Transmission Utilities; State Transmission Utility and functions
2. (ii)Central Government;
3. (iii)State Governments;
4. (iv)generating companies;
5. (v)Regional Power Committees;
6. (vi)Authority;
7. (vii)licensees;
8. (viii)any other person notified by the Central Government in this behalf;

1. (c)to ensure development of an efficient, co- ordinated and

1. (d)to provide non- discriminatory open access to its transmission system for use by-
   1. (i)any licensee or generating company on payment of the transmission charges; or
   2. (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 utilis

ed for the purpose of meeting the requirement of current level cross-subsidy:

Provided further that such surcharge and cross subsidies shall be

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

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 to function as transmission licensee through a transfer scheme to be effected in the

Duties of Transmission licensees

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.

1. (2)The functions of the State Transmission Utility shall be -
   1. (a)to undertake transmission of electricity through intra-State transmission system;
   2. (b)to discharge all functions of planning and co-ordination relating to intra-state transmission system with -
      1. (i)Central Transmission Utility;
      2. (ii)State Governments;
      3. (iii)generating companies;
      4. (iv)Regional Power Committees;
      5. (v)Authority;
      6. (vi)licensees;
      7. (vii)any other person notified by the State Government in this behalf;
   3. (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 centres;
   4. (d)to provid non- discriminatory open access to its transmission system for use by-
      1. (i)any licensee or generating company on payment of the transmission charges ; or
      2. (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 further that such surcharge and cross subsidies shall be progressively reduced and eliminated in the manner as may be specified by the State Commission:

Provided also that such surcharge may be levied till such time the cross

subsidies are not eliminated:

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