Section 38 of EA 2003, Electricity Act : Section 38: Central Transmission Utility And Functions

Explanation using Example

Imagine that the Central Government decides to improve the electricity transmission infrastructure across different states in India. To achieve this, the government identifies a government company, let's call it "PowerGrid Corporation," and notifies it as the Central Transmission Utility (CTU) under Section 38 of The Electricity Act, 2003.

As per the Act, PowerGrid Corporation is mandated not to engage in generating or trading electricity to maintain its focus on transmission. However, the government also plans to create a more specialized entity for managing transmission lines. Thus, it uses the provisions in Section 38 to transfer some of PowerGrid Corporation's assets, rights, and personnel to a newly formed company, "Transco Ltd.," which will...

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