Preamble

The Delhi Electricity Reforms Act, 2000 Act 2 of 2001

Keyword(s): Area of Supply, Area of Transmission, Supply Licence, Transmission, Transmission Licence, Power Corporation, Utility DISCLAIMER: This document is being furnished to you for your information by PRS Legislative Research (PRS). The contents of this document have been obtained from sources PRS believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. PRS or any persons connected with it do not accept any liability arising from the use of this document. PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document.

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI (DEPARTMENT OF LAW, JUSTICE AND LEGISLATIVE ASSEMBLY AFFAIRS) 5 SHAM NATH MARG, DELHI - 110054 DATED 8-3-2001 NOTIFICATION No F (27)/L.A/2000/ The Following Act of the legislative Assembly received the assent of the President of India on 6th March, 2001 is here by Published for general information DELHI ELECTRICITY REFORMS ACT, 2000 (DELHI ACT No.2 OF 2001) As passed by the Legislative Assembly of the National Capital Territory of Delhi on 23-11-2000) An Act To provide for the constitution of an Electricity Regulatory Commission, restructuring of the electricity industry (rationalization of generation, transmission, distribution and supply of electricity), increasing avenues for participation of private sector in the electricity industry and generally for taking measures conducive to the development and management of the electricity industry in an efficient, commercial, economic and competitive manner in the National Capital Territory of Delhi and for matters connected therewith or incidental thereto. BE it enacted by the Legislative Assembly of the National Capital Territory of Delhi in the Fifty-First year of the Republic of India as follows: - PART - 1 PRELIMINARY Short title, extentand 1. (1) This Act may be called the Delhi Electricity Reform commencement. Act, 2000.

1. (2) It extends to the whole of the National Capital Territory of Delhi excluding the areas of the New Delhi Municipal Council and the Delhi Cantonment Board.
2. (3) It shall be deemed to have come into force in the 3rd day of November, 2000. Definitions. 2. (1) In this Act, unless the context otherwise requires, -
   • (a) “area of transmission" means the area within which the holder of a transmission licence is for the time being, authorized by licence to transmit energy;
   • (b) "Central Act" means the Electricity Regulatory Commissions Act, 1998;
   • (c) "Commission" means the Delhi Electricity Regulatory Commission referred to in section 3;
   • (d) "Government' means the Lieutenant Governor referred to in article 239AA of the Constitution; (Central Act 9 of 1910) (e) licence" means a licence granted under Part Il or Part Il A of the Indian Electricity Act, 1910 or Part VI of this Act;
   • (f) licensee" or "licence holder" means a person licensed under part Il or Part Il A of the Indian Electricity Act, 1910 or under Part VI of this Act to transmit or supply energy;
   • (g) Lieutenant Governor" means the Lieutenant Governor of the National Capital Territory of Delhi appointed by the President under article 239 read with article 239AA of the Constitution;
   • (h) "High Court" means the High Court of Delhi;
     • (i) "member or members" means the member or members of the Commission and shall include the Chair-person of the Commission;
   • (j) “prescribed” means prescribed by the rules or regulations made under this Act;
   • (Kk) “regulation” means a regulation made by the Commission under this Act;
     • (I) “rule” means a rule made by the Government under this Act;
   • (m) “selection committee” means the selection committee referred to in section 4;
   • (n) “section” means a section of this Act;
3. (0) "transmit" in relation to electricity means the transportation or transmission of electricity by means of a system operated or controlled by a licensee which consists, wholly or mainly, of extra high voltage and extra high tension lines and electrical plant and is used for transforming and for conveying and/or transferring electricity from a generating station to a sub-station, from one generating station to another or from one sub-station to another or otherwise from one place to another. (Central Act 54 of 1948) (2) Words and expressions used but not defined in this Act and defined in the Electricity(Supply) Act, 1948, have the meanings respectively assigned to them in that Act; (Central Act 54 of 1948) (3) Words and expressions used but not defined either in this Act or in the Electricity Supply Act, 1948 and (Central Act 9 of 1910) defined in the Indian Electricity Act, 1910, have the meanings respectively assigned to them in that Act. PART - II DELHI ELECTRICITY REGULATORY COMMISSION Establishment and 3 (1) There shall be an Electricity Regulatory Constitution of the Commission for the National Capital Commission. Territory of Delhi to be known as "the Delhi Electricity Regulatory Commission"(hereinafter referred to as "the Commission”) to exercise the powers conferred on, and to perform the functions assigned to it under this Ordinance
4. (2) The Commission shall consist of one or more but not more than three members, including the Chairperson, to be appointed by the Government in the manner provided in section 4, who shall be person or persons, as the case may be, of ability, integrity and standing with knowledge of, and having shown capacity in, dealing with problems relating to administration, engineering, finance, commerce, economics, law or management: Provided that one member shall always be with adequate experience in generation, transmission or distribution of electricity and, if there are more than one member, the members shall be persons having expertise in different disciplines.
5. (3) The Commission established and constituted with one member under section 17 of the Central Act shall be the first commission for the purposes of this Ordinance and the member appointed shall be the chairperson of the Commission.
6. (4) Atall times the most senior member of the Commission shall act as Chairperson, such seniority being reckoned from the date of the appointment of the members. In case two or more persons are selected at the same time, the seniority amongst them shall be determined by the Government while making the appointment.
7. (5) When the Chairperson of the Commission is unable to discharge the functions owing to absence, illness or any other cause, the next senior member of the Commission shall discharge the functions of the Chairperson, until the day on which the Chairperson assumes the charge of his functions.
8. (6) No act or proceedings of the Commission shall be invalid by reason only of the existence of any vacancy among its members or any defect in the constitution thereof.
9. (7) The Commission shall have an official seal for the authentication of documents required for the purposes of its functions.
10. (8) The Commission may by a general or special order in writing and subject to such conditions as may be specified in the order delegate to any officer of the Commission such of the administrative powers as the Commission considers appropriate to aid and assist the work of the Commission. Constitution of the 4. (1)(a) The Government shall constitute a selection selection committee to committee, as often as may be required to select members. select persons for appointment as members. The selection committee shall consist of the following members :-
    • (i) AJudge of High - Court or a former ~~ Chairperson Judge of High Court.
    • (ii) Chief Secretary of - Member the Government.
    • (ii) The Chairman of ~~ - Member Central Electricity Regulatory Commission
    • (b) The Secretary in charge of the Department of Power of the Government shall act as the convenor of the selection committee.
11. (2) The selection committee shall finalise the selection within a period of one month from the date on which the reference is made to it.
12. (3) The selection committee shall recommend a panel of two names for every vacancy referred to it.
13. (4) All decisions of the selection committee shall be by majority.
14. (5) The Government shall appoint the member from the two names recommended by the selection committee.
15. (6) The method and manner of selection and appointment of members and designation of one of the members as Chairperson shall be as prescribed by the Government from time to time by the rules. 5. (1) The persons who are considered for appointment as members of the Conditions for Commission shall notify to the convenor of appointment. the selection committee -
    • (a) of any office, employment or consultancy agreement or arrangement which he has in his own name or in any firm, association or person or body corporate, or in the names of any relatives, carrying on any of the following businesses:-
      • (i) generation, transmission, distribution or supply of electricity;
      • (ii) manufacture, sale or supply of any fuel for generation of electricity;
      • (iii) manufacture, sale, lease, hire or otherwise supply of, or dealing in, machinery, plant, equipment, apparatus or fittings for generation, transmission, distribution supply or use of electricity;
      • (iv) any entity providing professional services to any of the businesses referred to in sub-clauses (i) (ii) and (iii) above and any other business which is notified by the Government on a later date taking into consideration the scope of work of the Commission; b. such other details and information as may be prescribed in the rules. Explanation for the purpose of this sub- section, the term "relative" shall have the (Central Act 1 of 1956) same meaning as defined under section 6 of the Companies Act, 1956.
16. (2) The details received from the persons shall be placed for consideration of the selection committee at the time of the selection and recommendation of the person for appointment as member.
17. (3) Each member of the Commission shall, before taking charge of the office as member or within such time not exceeding three months after taking charge as may be allowed by the Government on the recommendation of the selection committee, divest himself from the interest in the businesses mentioned in sub-section
18. (1) as a condition of his appointment.
19. (4) If a person to be appointed as a member of the Commission holds any office under the Government of India or the Government of any State or the Government of any Union territory he shall submit his resignation or take voluntary retirement from that service and shall not seek reappointment in the service of the Government or any Government, corporation or private body, dealing with the power sector for a period of two years after he ceases to be member of the Commission.
20. (5) So long as the person holds the office of the member and for a period of two years after he ceases to be a member for any reason whatsoever, he shall not acquire, hold or maintain, directly or indirectly, any office, employment or consultancy arrangement or interest in businesses mentioned in sub-section (1) and if he acquires any such interest involuntarily or by way of succession or testamentary disposition, he will divest himself of such interest within a period of three months of such interest being acquired.
21. (6) Before recommending any person as a member of the Commission, the selection committee shall satisfy itself that the person does not have any financial or other interest as referred to in sub-section (1) or otherwise which is likely to affect prejudicially his functions as a member.
22. (7) A person shall be disqualified from being appointed as member of the Commission if he is a member of Parliament or of the Legislative Assembly of any State or of the Legislative Assembly of any Union territory or of any local authority or holds any post in a political party. Term of office, 6. (1) Every member shall hold office for a period conditions of service, of five years from the date of his etc., of members. appointment as member or until the age of sixty five years, whichever is earlier, and he shall not be eligible for re-appointment at any time after the expiry of his term of appointment. Provided that no person shall be appointed as a member after he attains the age of sixty two years.
23. (2) The Chairperson of the Commission and other members shall receive such remunerations and other allowances and shall be governed by such conditions of service as may be prescribed from time to time under the rules : Provided that the terms shall not be varied to their disadvantage during the tenure of the appointment.
24. (3) The Chairperson of the Commission and every other member shall, before entering upon his office, make and subscribe to an oath of the office and of secrecy in such form, in such manner and before such authority, as may be prescribed. Removal of members. 7. (1) Subject to the provisions of sub-section (3), any member of the Commission shall only be removed from his office by order of the Lieutenant Governor on the ground of proved misbehavior after the High Court, on reference being made to it by the Lieutenant Governor, has, on inquiry held in accordance with the procedure prescribed in that behalf by the High Court, reported that the member ought on any such ground to be removed.
25. (2) The Lieutenant Governor may suspend any member of the Commission in respect of whom a reference has been made to the High Court under sub-station (1) until the Lieutenant Governor has passed orders on the receipt of the report of the High Court on such reference.
26. (3) Notwithstanding anything contained in sub- section (1), the Lieutenant Governor may, by order, remove from office the member if he - a. has been adjudged an insolvent; or b. has been convicted of an offence which, in the opinion of the Government, involves moral turpitude; or c. has become physically or mentally incapable of acting as a member; or d. has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or e. has so abused his position as to render his continuance in office prejudicial to the public interest; or f. has without reasonable cause refused or failed to act for a period of atleast six months; or g. ceasesto fulfil any of the conditions of his appointment as member. Notwithstanding anything contained in sub- section (3), no member shall be removed from his office on the ground specified in clause (d) or in clause (e) of that sub- section unless the High Court on a reference being made to it in this behalf by the Lieutenant Governor, has, on an inquiry held by it in accordance with such procedure as prescribed in this behalf by the High Court, reported that the member ought on such ground or grounds to be removed. The Government shall act in accordance with the recommendation in the final report under sub-section(4) and the Government shall communicate its decision to the member concerned within a period of two months of the receipt of such report. A member who has been removed shall not be eligible for re-appointment as a member or in any other capacity in the Commission or in the Government or in any Government undertakings. If the member removed under this section is the Chairperson of the Commission, he shall cease to be the Chairperson of the Commission. Appointment of the 8. (1) The Commission, in consultation with the Secretary and staff of Government, shall appoint a person as the Commission. Secretary of the Commission to assist the Commission to discharge its functions.
27. (2) The Commission may, in consultation with the Government, determine the number, nature and categories of other officers and employees required to assist the Commission in the discharge of its functions.
28. (3) The method and manner of selection of the Secretary, officers and other employees and the terms and conditions of their service may be prescribed by the Commission by regulations in consultation with the Government.
29. (4) The salaries and allowances payable to the members and the administrative expenses, including salaries, allowances and pensions payable to or in respect of the Secretary, officers and other employees of the Commission, shall be charged to the Consolidated Fund of the National Capital Territory of Delhi.
30. (5) The Commission may appoint consultants from time to time to assist the Commission in the discharge of its functions. PART - lll PROCEEDINGS, POWERS AND FUNCTIONS OF THE COMMISSION Proceedings of the 9 I) The headquarters of the Commission Commission. : shall be at Delhi.
31. (2) The Commission may, by notification in the official Gazette, make regulations not inconsistent with this Ordinance and the rules made thereunder for discharging its functions.
32. (3) All decisions of the Commission shall be on the basis of majority of the members present and voting. In case of a difference of opinion among the members of the Commission, the opinion of the majority shall prevail and the opinion of the Commission shall be expressed in terms of the views of the majority. Each member of the Commission shall have one vote only. The Chairperson shall have no casting or second vote.
33. (4) If there are more than one member in the Commission, the quorum for any meeting of the Commission shall be two members: Provided that for a meeting of the Commission to review any previous decision taken by the Commission or for consideration of any issue which could not be decided on account of equality of votes in favour of and against the resolution proposed, the quorum for the meeting shall be all members present.
34. (5) a. The Chairperson may instruct the Secretary to call a meeting of the Commission to be held at such time as the Chairperson may direct. b. Any member of the Commission may, subject to the consent of the Chairperson, requisition a meting of the Commission at any time by sending a notice in writing to the other members with a copy to the Secretary.
35. (6) The Commission shall be entitled to decide urgent matters by circulation of the papers to members.
36. (7) All decisions, directions and orders of the Commission shall be in writing and shall be supported by reasons. The decisions directions and orders of the Commission shall be available for inspection by any person and copies of the same shall also be made available in such a manner as the Commission may prescribe. Powers of the Commission. 10. (1) The Commission shall, for the (Central Act 5 of 1908) purposes of any inquiry or proceedings under this Ordinance have the powers as are vested in a Civil Court under the Code of Civil Procedures, 1908, while trying a suit in respect of the following matters, namely :- a. the summoning and enforcing of attendance of any witness and examining on oath; b. the discovery and production of any document or other material object producible as evidence; c. the reception of evidence on affidavit; d. the requisition of any public record from any court or office; e. the issue of commission for examination of witnesses; f. the appearance of parties and consequences of non- appearance; g. the grant of adjournments at the hearing; and h. any other matter which may be prescribed. (Central Act 1 of 1956) (2) The Commission shall have the power to require any person — a. to produce before it and allowed to be examined and kept by an officer of the Commission specified in this behalf, such books, accounts, or other documents in the custody or under the control of the person so required as may be specified or described in the requisition, being documents relating to any matter concerning the generation, transmission, distribution and supply or use of electricity, the functioning of any undertaking involved in the above areas and other matters, the examination of which the Commission considers is necessary or relevant for the purposes of this Ordinance or for the discharge of the functions of the Commission under this Ordinance; and b. to furnish to an officer so specified, such information as may be required for the purposes of this Ordinance or such other information as may be in his possession in relation to any activity carried on by any other person.
37. (3) For the purpose of enforcing the attendance of witnesses, the local limits of the jurisdiction of the Commission shall be the limits of the territory of India.
38. (4) The Commission shall have the powers to make such interim orders in any proceedings,or hearing before the Commission as the Commission considers appropriate.
39. (5) Where, during any inquiry or proceedings under this Ordinance, the Commission has any grounds to believe that any books or papers or documents of, or relating to, any unit or person in relation to which such inquiry is being made or proceeding relates which the owner of such unit or person may be required to produce in such inquiry or proceeding, are being, or may be, destroyed, mutilated, altered, falsified or secreted, it may, by a written order, authorize any officer of the Commission to exercise the powers of entry, search and seizure as may be exercised by an inspector appointed for inspection under sections 240 and 240- A of the Companies Act, 1956.
40. (6) Notwithstanding anything contained in any other law for the time being in force, the Commission may, by a general or special order, call upon any person including the generating companies or the licensees to furnish to the Commission periodically or as and when required any information concerned with the activities carried on by such person related to generation, transmission, distribution and supply or use of electricity, the connection between such person and any other person or undertaking including such other information related to the organization, business, cost of production, conducts, etc. as may be prescribed to enable the Commission to carry out its functions under this Ordinance.
41. (7) In the discharge of its functions, the Commission shall be entitled to and shall consult to the extent the Commission considers appropriate from time to time such person or group of persons as may be affected or are likely to be affected by the decisions of the Commission.
42. (8) The Commission may, at any time, call for and examine, information, details, books, accounts and other documents from any person including a generating company or a licensee for the purposes of providing the same to the Central Electricity Authority, the Central Electricity Regulatory Commission, the Central Government or the Government if so required by them under any law for the time being in force.
43. (9) Every person to whom notices may be issued under this Ordinance shall be obliged to duly, faithfully and expeditiously furnish such information, details, books, accounts and other documents, as may be specified in the notice by the Commission.. (Central Act 9 of 1910) (10) Notwithstanding anything contained in (Central Act 13 of 1985) sections 12 to 16 (both inclusive) and sections 18 and 19 of the Indian Electricity Act, 1910, for the placing of the electric supply lines, appliance and apparatus for transmission, distribution and supply of energy, the Commission may, by order in writing, confer upon licensees or any other person engaged in the business of transmission, distribution or supply of energy to the public under this Ordinance, subject to such conditions and restrictions as the Commission may prescribe, any of the powers which the telegraph authority possesses under the Indian Telegraph Act 1985 with respect to placing of telegraph lines and post. Functions of the 11. (1) The Commission shall discharge the Commission. following functions, namely :- a. to determine the tariff for electricity, wholesale, bulk, grid or retail, as the case may be ; b. to determine the tariff payable for the use of the transmission facilities; c. to regulate power purchase and procurement process of the licensees and transmission utilities including the price at which the power shall be procured from the generating companies, generating stations or from other sources for transmission, sale, distribution and supply in the National Capital Territory of Delhi; d. to promote competition, efficiency and economy in the activites of the electricity industry to achieve the objects and purposes of this Ordinance; e. to ad and advise the Government in matters concerning electricity generation, transmission, distribution and supply in the National Capital Territory of Delhi; f. to regulate the operation of the power system within the National Capital Territory of Delhi; g. to set standards for the electricity industry in the National Capital Territory of Delhi including standards related to quality, continuity and reliability of service; h. to promote competitiveness and make avenues for participation of private sector in the electricity industry in the National Capacity Territory of Delhi and also to ensure a fair deal to the customers; i. to ad and advise the Government in the formulation of its power policy; j- to collect and publish data and forecasts on the demand for, and use of, electricity in the National Capital Territory of Delhi and to require the licensees to collect and publish such data; k. to regulate the assets, properties and interest in properties concerned or related to the electricity industry in the National Capital Territory of Delhi including the conditions governing entry into, and exit from the electricity industry in such manner as to safeguard the public interest; 1 to issue licences for transmission, bulk supply, distribution or supply of electricity and determine the conditions to be included in the licences; m. to regulate the working of the licensees and other persons authorized or permitted to engage in the electricity industry in the National Capital Territory of Delhi and to promote their working in an efficient, economical and equitable manner; n. to require licensees to formulate prospective plans and schemes in co-ordination with others for the promotion of generation, transmission, distribution, supply and utilization of electricity, quality of service and to devise proper power purchase and procurement process; 0. to adjudicate upon the disputes and differences between the licensees and/or transmission utilities and to refer the matter for arbitration; p. to aid and advise the Government on any other matter referred to the Commission by the Government.
44. (2) The Commission shall always act consistent with the objectives and purposes for which the Commission has been established as an independent statutory body corporate and all acts, decisions and orders of the Commission shall be pursuant to and shall seek to achieve such objectives and purposes. PART-IV POWERS OF THE GOVERNMENT General powers of the Government. 12. (1) In the discharge of its functions, the Commission shall be guided by such directions in matters of policy involving public interest as the Government may issue from time to time.
45. (2) If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Government thereon shall be final.
46. (3) The Government shall be entitled to issue policy directions concerning any subsidy to be allowed for supply of electricity or any other infrastructure services to any class or classes of persons; Provided that the Government shall contribute an amount to compensate the Board or any company affected to the extent of the subsidy granted. The Commission shall determine such amounts, the terms and conditions on which and the time within which such amounts are to be paid by the Government.
47. (4) The Government shall consult the Commission in relation to any proposed legislation or rules concerning any policy direction and may take into account the recommendations made by the Commission. Authorising the Commission to 13. The Government may, if so discharge functions of Commission required to do by the Central in respect of other Union territory. Government, authorise the Commission to discharge the functions of Electricity Regulatory Commission in respect of any other Union territory. PART-V REORGANISATION OF ELECTRICITY INDUSTRY Incorporation of companies for the 14. (1) The government may, as soon as purpose of generation, transmission may be after the conmmencement or distribution of electricity. of this Ordinance, cause one or (Central Act 1of 1956) 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.
48. (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.
49. (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.
50. (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.
51. (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;
52. (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.
53. (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 15. (1) With effect from the date on which a Board and transfer of properties, transfer scheme prepared by the functions and duties thereof. 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
54. (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
55. (4) Notwithstanding anything contained in this section or any other Act, where - 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.
56. (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).
57. (6) A transfer scheme may- 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-
    • (i) by specifying or describing the property, rights and liabilities in question,
    • (i) 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