General powers of the State Government -(1) The State Government

shall have the power to issue policy directions on matters concerning electricity in the State including the overall planning and co-ordination. All policy direction shall be issued by the State Government consistent with the objects sought to be achieved by this Act and accordingly shall not adversely affect or interfere with the functions and powers of the Commission including but not limited to determination of the structure of tariffs for supply of electricity to various classes of consumers.

1. (2) If any dispute arises between the Commission and the State Government as to whether or not a question is a matter of policy or whether a policy direction issued by the State Government adversely affects or interferes with the exercise of the functions of the Commission, the same shall be referred by the State Government to a retired judge of the Supreme Court in consultation with the Chief Justice of the Supreme Court whose decision thereon shall be final and binding.
2. (3) The State Government shall be entitled to issue policy directions concerning the subsidies to be allowed for supply of electricity to any class or classes of persons or in respect of any area in addition to the subsidies permitted by the Commission while regulating and approving the tariff structure provided that the State Government shall contribute the amount to compensate such concerned body or unit affected by the grant of the subsidies by the State Government to the extent of the subsides granted. The Commission shall determine the amounts and the terms and conditions and time frame on which such amounts are to be paid by the State Government.
3. (4) The State Government shall consult the Commission in relation to any proposed legislation or rules concerning any policy direction and shall duly take into account the recommendation by the Commission on all such matters. PART - V APTRANSCO