IN RE: BHAKRA BEAS MANAGEMENT BOARD Vs. STATE

JUDGEMENT

(1.) THE Electricity Act, 2003 (hereinafter "the EA 2003") came into force with effect from 10.6.2003, repealing the earlier Acts such as the Indian Electricity Act, 1910, Electricity Supply Act, 1948 and Electricity Regulatory Commission Act, 1998. Section 173 of the EA 2003 provides that "nothing contained in this Act or any rule or Regulation made there under or any instrument having effect by virtue of this Act, rule or Regulation shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act, 1986 or the Atomic Energy Act, 1962 or the Railways Act, 1989." Further, Section 174 of the EA 2003 provides that "Save as otherwise provided in Section 173, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act." After the operation of the EA 2003, all functions and activities covered under the Act shall have overriding effect on similar functions and activities under any other Act in force except in case of the Consumer Protection Act, 1986 or Atomic Energy Act, 1962 or the Railways Act, 1989.

(2.) CHAPTER II of the EA 2003 deals with generation of electricity. Chapter III deals with licensing. Section 12 provides that no person shall transmit or distribute or undertake trading in electricity unless he is authorised to do so by a licence issued under Section 14 of the EA Act. Section 14 provides that the Appropriate Commission may, on an application made to it under Section 15, grant a licence to any person to transmit electricity as a transmission licensee or to distribute electricity as a distribution licensee or undertake trading in electricity as an electricity trader in any area as may be specified in the licence. Chapter v. of the EA 2003 deals with transmission of electricity. Chapter VII deals with determination of tariff for generation, transmission and distribution of electricity. Chapter X deals with the powers and functions of the Central Commission and State Commissions. Section 79 provides for the functions of the Central Commission as under:

(3.) THE genesis of Bhakra Beas Management Board may be traced to the provisions of Sections 78 to 80 of the Punjab Reorganisation Act, 1966 (hereinafter "1966 Act"). Section 78 provides for the manner of transfer of rights and liabilities in regard to Bhakra -Nangal and Beas Projects to the successor States after operation of the 1966 Act. Section 79 of the 1966 Act provides that the Central Government shall constitute a Board to be called the Bhakra Management Board for the administration, maintenance and operation of the works of Bhakra Dam, Nangal Dam and Nangal -Hydel Channel upto Kotla Power House, the irrigation head works at Rupar, Harike and Ferozepur, Bhakra Power House, Gunguwal and Kotla Power Houses, sub -stations at Ganguwal, Ambala, Panipat, Delhi, Ludhiana, Sangrur and Hissar and the main 220 kV transmission lines connecting the said Sub -sections and power houses. Sub -section (2) of Section 79 of the 1966 Act provides for constitution of Bakra Management Board consisting of a whole time Chairman and two whole time members to be appointed by the Central Government and a representative each of the Governments of the States of Punjab, Haryana and Rajasthan and Himachal Pradesh to be nominated by the respective Governments. The functions of Bhakra Management Board include the Regulation of power generated at the power -houses to any Electricity Board or authority in charge of distribution of power as per the existing agreement or arrangements. Sub -section (6) of Section 79 of 1966 Act provides that the Bhakra Management Board shall be under the control of the Central Government and shall comply with such directions as may, from time to time, be given to it by the Central Government.