Section 40 — Duties of transmission licensees.

40. Duties of transmission licensees.–It shall be the duty of a transmission licensee– 

(a) to build, maintain and operate an efficient, co-ordinated and economical inter-State 
transmission system or intra-State transmission system, as the case may be; 

(b) to comply with the directions of the Regional Load Despatch Centre and the State Load 
Despatch Centre as the case may be; 

(c) 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 State Commission: 

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

Provided further that such surcharge and cross subsidies shall be progressively reduced 3*** in the 
manner as may be specified by the Appropriate Commission: 
  

                                                             
1. The words “and eliminated” omitted by Act 26 of 2007, s. 5 (w.e.f. 15-6-2007).  
2. The third proviso omitted by s. 5, ibid. (w.e.f. 15-6-2007). 
3. The words “and eliminated” omitted by s. 6, ibid. (w.e.f. 15-6-2007). 

 

 
 
 
 



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Provided also that the manner of payment and utilisation of the surcharge shall be specified by the 
Appropriate 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.