The National Thermal Power Corporation Limited, the National Hydro-Electric, Power Corporation Limited and The North-Eastern Electric Power Corporation Limited (Acquisition and Transfer of Power Transmission Systems) Act, 1993

The National Thermal Power Corporation Limited, The National Hydro-Electric, Power Corporation Limited and The North-Eastern Electric Power Corporation Limited (Acquisition and Transfer of Power Transmission Systems) Act, 1993 (Act No. 24 OF 1993) dated 2nd April, 1993, being the Central Government Act was enacted with the object to acquire and transfer of the Power Transmission system of ‘The National Thermal Power Corporation Limited’, ‘The National Hydro-Electric, Power Corporation Limited’ and ‘The North-Eastern Electric Power Corporation Limited’ (enlisted under First Schedule of the Act) along with right, title and interest of these companies in the Power Transmission System situated in various parts of the Country. Such transfer and acquisition is intended under this Act with the motive to develop the National Power Grid so as to ensure transmission of power, within and across the different regions of India, on a more scientific, efficient and economic basis. Prior to the enactment of this Act, there was an Ordinance (being Ordinance no. 10 of 1993) in this regard, which was repealed on this Act came into force.

The first Chapter of this Act is dealing with the short title, extension or applicability and commencement of this Act. The Act was enacted with its extension to whole of India but not to the State of Jammu and Kashmir as per Section 1 thereof. Further, Sub Section (3) of Section 1 of the Act specified the date on which the provisions of this Act should be come into force, wherein the provisions (from sections 8 to 11 and sections 13 to 16 of the Act) were to come into force on 8th January, 1993 and all other remaining provisions thereof were to come into force on 1st April, 1992. Another important provision i.e. Section 2 of the Act defines various terms used under the different provisions of this Act.

The Second Chapter of the Act i.e. from Section 3 to 8 of the Act makes provisions similar to the object of this Act. The first provision i.e. Section 3 of the Act specifies that the power transmission system and the right, title, etc. of all those companies mentioned under First Schedule of the Act, should be treated as transferred under the authority of the Central Government on such appointed day as required under this provision. And on such transfer of the Power Transmission System of those companies, it should be treated as vested with Corporation. Moreover, Section 4 of the Act explains the effect of such transfer of Power Transmission System and says that all the assets, rights, leaseholds, powers, properties, etc. attached with such system and all other related stuffs including books of accounts, and civil suits liability etc. required to be included under such transfer. Besides, the Section 5 of the Act specifies that on such transfer all liability attached with those companies prior to appointed of transfer or vesting should be transferred to Corporation as the said liability is of Corporation and not of any one of those companies. However, such transfer of liabilities not included the income and expenditure on revenue account, arrears of depreciation relating to contingent liabilities on capital account.

Further, Section 6 of the Act makes Corporation a lessee or tenant in respect of properties, held by such companies in relation to its power transmission system, prior to transfer as under any lease or tenancy and all the rights under such lease or tenancy also to be transferred to the Corporation as specified under this provision. Further, the Corporation is vested with the power to renew the term of such lease or tenancy on its choice. All such provisions are describing the transfer of power transmission system carried on by those companies and the effect of such transfer.

Further, the Section 8 of the Act makes provisions as to consideration for transfer of such power transmission system. It is made clear that, the Central Government should make payment to those companies the amount equivalent to that of book value of all the assets, properties excluding liabilities but not contingent one. However, such paid amount by the Central Government should be renumbered by the Corporation in the prescribed manner on transfer of such power transmission system to it by the Central Government under the relevant provisions.

Similarly, the next Chapter (Chapter III) of the Act deals with provisions as to delivery of assets, books or other documents connected with such transferred power transmission system, to the Corporation. Section 9 specifies that if any person was responsible to such assets or documents thereof before transfer, then such person should be responsible to deliver such stuffs to the Corporation.

Every person who were employed under those companies prior to such transfer, should continue their employment with Corporation in relation to that power transmission system and all conditions to their service should also be same as were before the transfer made existed. However, such persons are not entitled to any claim of compensation under any law. Section 11 makes provisions as to transfer of amount funded to the accounts of provident fund and other funds of such employees.

Chapter V of the Act deals with miscellaneous provisions, wherein the most important is provision relating to penalties for several offences describes under different clauses. The extension of punishment is given up to two year’s imprisonment and fine up to 10,000 rupees. Further, Section 14 of the Act describes offence by companies and also persons to be held liable thereof.

The Act provides immunity, under Section 15, regarding certain acts of the Central Government or Corporation or even of those companies including officers thereof, done in good faith. Final provision i.e. Section 16 of the Act empowers the Central Government to make rules to serve for the purposes of this Act and also to provide on various matters enlisted under different clauses of this provision.

by Faim Khalilkhan Pathan