RESTRICTION ON ESTABLISHMENT OF NEW GENERATING STATIONS OR MAJOR ADDITIONS OR REPLACEMENT OF PLANT IN GENERATING STATIONS.

(1) Notwithstanding anything contained in any other law for the time being in force or in any licence, but subject to the provisions of this Act, it shall not be lawful for a licensee, or, any other person, not being the Central Government or an Corporation created by a Central Act or any generating Company, except with the previous consent in writing of the Board, to establish or acquire a new generating station or to extend or replace any major unit of plant or works pertaining to the generation of electricity in a generating station: Provided that such consent shall not, except in relation to a controlled station, be withheld unless within three months from the date of receipt of an application- (a) For consent to the establishment or acquisition of a new generating station, the Board- (i) Gives to the applicant being a licensee an undertaking that it is competent to, and will, within twenty-four months from the said date, afford to him a supply of electricity sufficient for his requirements pursuant to his application; or (ii) Shows to the applicant that the electricity required by him pursuant to his application could be economically obtained within a reasonable time from another appropriate source; (b) For consent to the extension of any major unit of plant or works as aforesaid, the Board- (i) Gives to the applicant being a licensee an undertaking that within twenty-four months from the said date either the station to which the application pertains will become a controlled station in terms of Sec. 34, or the Board will make a declaration to the applicant in terms of Sec. 35 offering him a supply of electricity sufficient for his requirements pursuant to his application, or the Board will make a declaration to him in terms of Sec. 36; or (ii) Shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source or by other appropriate means; (c) For consent to the replacement of major unit of plant or works, the Board- (i) Gives to the applicant being a licensee an undertaking that within eighteen months from the said date either the station to which the application pertains will become a controlled station in terms of Sec. 34 or the Board will make a declaration to him in terms of Sec. 36; or (ii) Shows to the applicant that the electricity required by him pursuant to his application could be more economically obtained within a reasonable time from another appropriate source or by other appropriate means. (2) There shall be stated in every application under this section such particulars as the Board may reasonably require of the station plant or works, as the case may be, in respect of which it is made, and where consent is given thereto, in acting in pursuance of such consent, the applicant shall not without the further consent of the Board, make any material variation in the particulars so stated. (2-A) The Board shall, before giving consent under subsection (1), to the establishment or acquisition of a new generating station or to the extension or replacement of any major unit of plant or works, consult the Authority, in cases where the capacity of the new generating station or, as the case may be, the additional capacity proposed to be created by the extension or replacement exceeds twenty-five thousand kilowatts. (3) Any difference or dispute arising out of the provisions of this section shall be referred to the arbitration of the Authority.