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Section 38. (1) The Central Government may notify any Government company

as the Central Transmission Utility:

Provided that the Central Transmission Utility shall not engage in the
business of generation of electricity or trading in electricity:

Provided further that, the Central Government may transfer, and vest any
property, interest in property, rights and liabilities connected with, and personnel
involved in transmission of electricity of such Central Transmission Utility, to a
company or companies to be incorporated under the Companies Act, 1956 to
function as a transmission licensee, through a transfer scheme to be effected in the
manner specified under Part XIII and such company or companies shall be deemed
to be transmission licensees under this Act.


(2) The functions of the Central Transmission Utility shall be -

(a) to undertake transmission of electricity through inter-State
transmission system;

(b) to discharge all functions of planning and co-ordination relating
to inter-state transmission system with -

(i) State Transmission Utilities;




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State
Transmission
Utility and
functions











(ii) Central Government;

(iii) State Governments;

(iv) generating companies;

(v) Regional Power Committees;

(vi) Authority;

(vii) licensees;

(viii) any other person notified by the Central Government in
this behalf;

(c) to ensure development of an efficient, co-
ordinated and
economical system of inter-State transmission lines for smooth flow of electricity
from generating stations to the load centres;

(d) to provide non-
discriminatory open access to its transmission
system for use by-

(i) any licensee or generating company on payment of the
transmission charges; or

(ii) any consumer as and when such open access is provided by the
State Commission under sub-section (2) of section 42, on payment of the
transmission charges and a surcharge thereon, as may be specified by the Central
Commission:

Provided that such surcharge shall be utilis
ed for the purpose of meeting
the requirement of current level cross-subsidy:

Provided further that such surcharge and cross subsidies shall be
progressively reduced and eliminated in the manner as may be specified by the
Central Commission:

Provided also that such surcharge may be levied till such time the cross
subsidies are not eliminated:

Provided also that the manner of payment and utilisation of the
surcharge shall be specified by the Central Commission:

Provided also that such surcharge shall not be leviable in case open
access is provided to a person who has established a captive generating plant
for carrying the electricity to the destination of his own use.