Generating Company and requirement for setting up of generating station
GENERATION OF ELECTRICITY
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 its opinion,-
- 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.
Duties of Generating Companies
- 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
- 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 Commission.
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 made thereunder.
- 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