Chapter IV POWERS OF STATE GOVERNMENT

General powers Of State Government 12 .(1)The State Government shall have the power to issue policy directives on matters concerning electricity in the State including on measures which are considered necessary for the overall planning and coordination for the development of Electricity Industry in the State.

1. (2) The policy directives under sub-section (1) shall be in writing and shall be consistent with the objects sought to be achieved by this Act and they shall not adversely affect or interfere with the functions and powers of the Commission including but not limited to licensing and determination of tariffs under the powers vested in the Commission under the Act.
2. (3) The State Government shall consult the Commission in relation to any policy directive which it proposes to issue or any legislation is proposed to be enacted affecting the Electricity Industry, it shall duly take into account the recommendation if any, given by the Commission within such reasonable time as the State Government may specify.

Arbitration of Dispute between State Government And Commission 13

1. (1) If any dispute or difference arises between Commission and the State Government on the matters specified in Section 12, the same shall be referred to the Central Commission for decision.
2. (2) On such reference being made the person appointed shall as far as possible decide the reference within 90 days, and his decision on the matter shall be final and binding.