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PART-V

REORGANISATION OF ELECTRICITY INDUSTRY
 

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Incorporation of companies for the purpose of generation, transmission or distribution of electricity.
(Central Act 1of 1956)

14. (1)

The government may, as soon as may be after the commencement of this Ordinance, cause one or more companies to be incorporated and set up under the provisions of the Companies Act. 1956 for the purpose of generation. transmission or distribution of electricity, including companies engaged in more than one of the said activities in the National Capital territory of Delhi and may transfer the existing generating stations or the transmission system or distribution system or any part of the transmission system or distribution system, to such company or companies.

(2)

The Government may designate any company set up under sub-section (I) to be the principal company to undertake all planning and coordination in regard to generation or transmission or both; and such company shall undertake works connected with generation or transmission and determine the requirements of the territory in consultation with the other companies engaged in generation or transmission for the National Capital Territory of Delhi, the Commission the Regional Electricity Board and the Central Electricity Authority and any other authority under any law in force for the time being, or any other Government concerned.

(3)

The companies incorporated and set up under sub-section (I) shall under take the functions specified in this section and such other function as may be assigned to them by the Government.

(4)

Subject to the provisions of this Ordinance and of the duties and functions assigned to the companies incorporated and set up under sub-section (I), other companies engaged in generation, transmission or distribution of electricity, or more than one of the said activities may be incorporated and set up in the National Capital Territory of Delhi.

(5)

The Government may, in consultation with the Commission determine the lines that shall be treated as transmission or distribution lines for the purpose of division of responsibilities between the companies incorporated and set up under this section. having regard to the voltage levels of such lines and any other factor which it may consider relevant;

(6)

The Government may convert the companies set up under this Ordinance to joint venture companies through a process of disinvestment, in accordance with the transfer scheme prepared under the provisions of this Ordinance.

(7)

Upon the transfer of all functions of the Board to corporate entities in terms of this Part, the Government may appoint an administrator for the purpose of finalisation of the accounts of the Board for all the pending years till the date of such transfer and thereafter for winding up the Board in such manner as the Government may direct.

Reorganisation of Delhi Vidyut Board and transfer of properties, functions and duties thereof. 15. (1)

With effect from the date on which a transfer scheme prepared by the Government to give effect to the objects and purposes of this Ordinance, is published or such further date as may be specified by the Government (hereinafter referred to as "the effective date"), any property, interest in property, rights and liabilities which immediately before the effective date belonged to the Board shall vest in the Government

(2)

The Government. may transfer such property, interest in property, rights and liabilities to any company or companies established under section 14 for the purpose in accordance with the transfer scheme prepared therefor.

(Central Act 54 of 1948) (3)

Such of the rights and power to be exercised by the Board under the Electricity (Supply) Act, 1948 as the Government may , by notification in the official Gazette, specify, shall be exercisable by a company or companies established as the case may be, under section 14, for the purpose of discharge of the functions and duties with which it is entrusted

(4) Notwithstanding anything contained in this section or any other Act, where -
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a.

the transfer scheme involves the transfer of any property or rights to any person or undertaking not wholly owned by the Government, the scheme shall give effect to the transfer only after asset valuation;

b.

where any transaction of any description is effected in pursuance of a transfer scheme, it shall be binding on all persons including third parties, even if such persons have not consented to it.

(5)

The Government may require any transmitting or distributing company established under the provisions of sub-section (1) of section 14 (hereinafter referred to as "the transferor licensee,") or any generating company to draw up a transfer scheme to vest in a further licensee or licensees (the "transferee licensee or licensees"), or any generating company, any property, interest in property, rights and liabilities which have been vested in the transferor licensee or generating company, as the case me be, under this section and publish the same in the official Gazette. The transfer scheme to be notified under this sub-section shall have the same effect as a transfer scheme under sub-section (2).

(6) A transfer scheme may-
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a.

provide for the formation of subsidiaries, joint venture companies or other schemes of division, amalgamation, merger, reconstruction or arrangements;

b. define the property, interest in property, rights and liabilities to be allocated-
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(i) by specifying or describing the property, rights and liabilities in question,
(ii)

by referring to all the property, interest in property, rights and liabilities comprised in a specified part of the transferors under-taking or

(iii) partly in the one way and partly in the other :

Provided that the property, interest in property, rights and liabilities shall be subject to such further transfer as the Government may specify;
  

c.

provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the transferor or the transferee;

d.

impose on any licensee an obligation to enter into such written agreements with, or execute such other instruments in favour of, any other subsequent licensee as may be specified in the scheme;

e.

make such supplemental, incidental and consequential provisions as the transferor licensee considers appropriate including provision specifying the order in which any transfer or transaction is to be regarded as taking effect;

f. provide that the transfer shall be provisional subject to the provisions of section 18

 

7.

All debts and obligations incurred, all contracts entered into and all matters and things done by, with or for the Board, or a company or companies established as the case may be, under section 14 or generating company or distribution company or companies before a transfer scheme becomes effective shall, to the extent specified in the relevant transfer scheme, be deemed to have been incurred, entered into or done by, with or for the Government or the transferee and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, may be continued or instituted by or against the Government or concerned transferee, as the case may be.

8.

In the event a licensee is required to vest any part of its undertakings in another licensee pursuant to sub-section (5), the Government shall amend the transferee licence in accordance with section 24 or revoke its licence in accordance with section 23.

9.

The Board shall cease to exist with the transfer of functions and duties specified and with the transfer of assets as on the effective date.

10.

The exercise by a licensee of any of Board’s rights and powers may be made on such conditions as shall be specified in the transfer scheme including a condition that such rights and powers shall be exercised by the licensee only with the approval of the Commission/Government.

Provisions relating to Personnel. 16. (1)

The Government may by a transfer scheme provide for the transfer of the personnel from the Board to a company or companies established as the case may be, under section 14 and distribution companies ('hereinafter referred to as "transferee company or companies") on the vesting of properties, rights and liabilities in a company or companies established, as the case may be, under section 14 or the distribution companies.

(2)

Upon such transfers the personnel shall hold office in the transferee company on terms and conditions that may be specified in the transfer scheme subject, however, to the following, namely:-
 

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(a)

that the terms and conditions of the service applicable to them in the transferee company shall not in any way, be less favourable than or inferior to those applicable to them immediately before the transfer;

(b) that the personnel shall have continuity of service in all respects; and
(c)

that the benefits of service accrued before the transfer shall be fully recognized and taken in account for all purposes including the payment of any and all terminal benefits.

Payment of compensation or damages on transfer.

(Central Act 14 of 1947)

17.

Notwithstanding anything contained in the Industrial Disputes Act, 1947 or any other law as is applicable and except for the provisions made in this Ordinance, the transfer of the employment of the personnel referred to in section 16 shall not entitle such employees to any compensation or damages under this Ordinance, or any other law or under the general law, save as provided in the transfer scheme.

Variation of transfers by agreement. 18. (1)

The Government may provide that the transfers in terms of sections 15 and 16 shall be provisional for a period of twelve months from the effective date unless confirmed earlier and reserve the right to alter, vary, modify, add or otherwise change the terms in such manner as the Government may consider appropriate.

(2)

At any time before the end of the period of twelve months commencing on the effective date, a company or companies established as the case may be, under section 14 or generating company or distribution company or companies, as the case may be, to whom property, interests in property, rights, liabilities and personnel have been transferred, may, with the consent of the Government draw up a transfer scheme to vest some or all the property, rights, liabilities and personnel in another licensee, or generating company subject to the consent of such other licensee or generating company to such vesting and any such transfer scheme shall take effect as if it were a transfer scheme under sections 15.

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[Preliminary]   [Delhi Electricity Regulatory Commission]   [Miscellaneous]    [Tariffs]
[Advisory Committee, Consumer Counsultation, Etc.]   [Arbitration and Appeals]   [Offences and Penalties]   [Powers of the Government]
[Licensing of Transmission and Supply]   [Accounts, Audit and Report of the Commission]   [Effect on Existing Central Legislation]
[Powers of Commission to Pass Orders and Enforce Decisions]    [Proceedings, Powers and Functions of the Commission]

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