ENERGY CONSERVATION ACT 2001

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THE ENERGY CONSERVATION ACT, 2001 
_____________ 

ARRANGEMENT OF SECTIONS 
_____________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 
2. Definitions. 

 

CHAPTER II 

BUREAU OF ENERGY EFFICIENCY 

3. Establishment and incorporation of Bureau of Energy Efficiency. 
4. Management of Bureau. 
5. Meetings of Governing Council. 
6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee. 
7. Removal of member from office. 
8. Constitution of Advisory Committees and other committees. 
9. Director General of Bureau. 
10. Officers and employees of Bureau. 
11. Authentication of orders and decisions of Bureau. 

 

CHAPTER III 

TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU 

12. Transfer of assets, liabilities and employees of Energy Management Centre. 

 

CHAPTER IV 

POWERS AND FUNCTIONS OF BUREAU 

13. Powers and functions of Bureau. 

 

CHAPTER V 

POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS 

CONSERVATION 

14. Power of Central Government to enforce efficient use of energy and its conservation. 
14A. Power of Central Government to issue energy savings certificate. 

14B. Power of Central Government to specify value of energy. 

 

CHAPTER VI 

POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS 

CONSERVATION 

15. Power of State Government to enforce certain provisions for efficient use of energy and its 

conservation. 
16. Establishment of Fund by State Government. 
17. Power of inspection. 
18. Power of Central Government or State Government to issue directions. 



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CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT OF BUREAU 

SECTIONS 

19. Grants and loans by Central Government. 
20. Establishment of Fund by Central Government. 
21. Borrowing powers of Bureau. 
22. Budget. 
23. Annual report. 
24. Annual report to be laid before Parliament. 
25. Accounts and audit. 

 

CHAPTER VIII 

PENALTIES AND ADJUDICATION 

26. Penalty. 
27. Power to adjudicate. 
28. Factors to be taken into account by adjudicating officer. 
29. Civil court not to have jurisdiction. 

 

CHAPTER IX 

APPELLATE TRIBUNAL FOR ENERGY CONSERVATION 

30. Appellate Tribunal. 
31. Appeal to Appellate Tribunal. 
31A. Procedure and powers of Appellate Tribunal. 
32. to 43. [Omitted.] 

44. Right of appellant to take assistance of legal practitioner or accredited auditor and of Government 

to appoint presenting officers. 

45. Appeal to Supreme Court. 

 

CHAPTER X 

MISCELLANEOUS 

46. Power of Central Government to issue directions to Bureau. 

47. Power of Central Government to supersede Bureau. 

48. Default by companies. 

49. Exemption from tax on income. 

50. Protection of action taken in good faith. 

51. Delegation. 

52. Power to obtain information. 

53. Power to exempt. 

54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State 

Commission, Director-General, Secretary, members, officers and employees of the Bureau to be 

public servants. 

55. Power of Central Government to issue directions. 

56. Power of Central Government to make rules. 

57. Power of State Government to make rules. 

58. Power of Bureau to make regulations. 

59. Rules and regulations to be laid before Parliament and State Legislature. 

60. Application of other laws not barred. 

61. Provisions of Act not to apply in certain cases. 

62. Power to remove difficulty. 

THE SCHEDULE.  



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THE ENERGY CONSERVATION ACT, 2001 

ACT NO. 52 OF 2001 

[29th September, 2001.] 

An Act to provide for efficient use of energy and its conservation and for matters connected 

therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Energy Conservation 

Act, 2001. 

(2) It extends to the whole of India except the State of Jammu and Kashmir. 

(3) It shall come into force on such date
1
 as the Central Government may, by notification in the 

Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and 

any reference in any such provision to the commencement of this Act shall be construed as a reference to 

the coming into force of that provision. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “accredited energy auditor” means 
2
[an energy auditor accredited in accordance with the 

provisions of] clause (p) of sub-section (2) of section 13; 

(b) “Appellate Tribunal” means the Appellate Tribunal for Energy Conservation 
3
[referred to in 

section 30]; 

4
[(c) “building” means any structure or erection or part of structure or erection after the rules 

relating to energy conservation building codes have been notified under clause (p) of section 14 and 

clause (a) of section 15 and includes any existing structure or erection or part of structure or erection, 

which is having a connected load of 100 Kilowatt (kW) or contract demand of 120 Kilo-volt Ampere 

(kVA) and above and is used or intended to be used for commercial purposes;] 

(d) “Bureau” means the Bureau of Energy Efficiency established under sub-section (1) of               

section 3; 

(e) “Chairperson” means the Chairperson of the Governing Council; 

(f) “designated agency” means any agency designated under clause (d) of section 15; 

(g) “designated consumer” means any consumer specified under clause (e) of section 14; 

(h) “energy” means any form of energy derived from fossil fuels, nuclear substances or materials, 

hydro-electricity and includes electrical energy or electricity generated from renewable sources of 

energy or bio-mass connected to the grid; 

(i) “energy audit” means the verification, monitoring and analysis of use of energy including 

submission of  technical report containing recommendations for improving energy efficiency with 

cost benefit analysis and an action plan to reduce energy consumption; 

(j) “energy conservation building codes” means the norms and standards of energy consumption 

expressed in terms of per square metre of the area wherein energy is used and includes the location of 

the building; 

(k) “energy consumption standards” means the norms for process and energy consumption 

standards specified under clause (a) of section 14; 

                                                           
1. 28th June, 2012 (sections 31, 33, 44, 45), vide notification No. S. O. 1433(E), dated 28th June, 2012, see Gazette of India, 

Extraordinary, Part II, sec. 3(ii). 

2. Subs. by Act 28 of 2010 s. 2, for “an auditor possessing qualifications specified under” (w.e.f. 24-8-2010). 

3. Subs. by s. 2, ibid., for “established under section 30” (w.e.f. 24-8-2010). 

4. Subs. by s. 2, ibid., for clause (c) (w.e.f. 24-8-2010). 



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(l) “Energy Management Centre” means the Energy Management Centre set up under the 

Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No. 

7(2)/87- EP(Vol. IV), dated the 5th July, 1989 and registered under the Societies Registration Act, 

1860 (21 of 1860); 

(m) “energy manager” means any individual possessing the qualifications prescribed under    

clause (m) of section 14; 

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[(ma) “energy savings certificate” means any energy savings certificate issued to the designated 

consumers under sub-section (1) of section 14A; 

(maa) “equipment or appliance” means any equipment or appliance which consumes, generates, 

transmits or supplies energy and includes any device that consumes any form of energy and produces 

a desired work;] 

(n) “Governing Council” means the Governing Council referred to in section 4; 

(o) “member” means the member of the Governing Council and includes the Chairperson; 

(p) “notification” means a notification in the Gazette of India or, as the case may be, the Official 

Gazette of a State; 

(q) “prescribed” means prescribed by rules made under this Act; 

(r) “regulations” means regulations made by the Bureau under this Act; 

(s) “Schedule” means the Schedule to this Act; 

(t) “State Commission” means the State Electricity Regulatory Commission established under 

sub-section (1) of section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998); 

(u) words and expressions used and not defined in this Act but defined in the Indian Electricity 

Act, 1910 (9 of 1910) or the Electricity (Supply) Act, 1948 (54 of 1948) or the Electricity Regulatory 

Commissions Act, 1998 (14 of 1998) shall have the meanings respectively assigned to them in those 

Acts. 

CHAPTER II 

BUREAU OF ENERGY EFFICIENCY 

3. Establishment and incorporation of Bureau of Energy Efficiency.—(1) With effect from such 

date as the Central Government may, by notification, appoint, there shall be established, for the purposes 

of this Act, a Bureau to be called the Bureau of Energy Efficiency. 

(2) The Bureau shall be a body corporate by the name aforesaid having perpetual succession and a 

common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, 

both movable and immovable, and to contract, and shall, by the said name, sue or be sued. 

(3) The head office of the Bureau shall be at Delhi. 

(4) The Bureau may establish offices at other places in India. 

4. Management of Bureau.—(1) The general superintendence, direction and management of the 

affairs of the Bureau shall vest in the Governing Council which shall consist of not less than twenty, but 

not exceeding twenty-six, members to be appointed by the Central Government. 

(2) The Governing Council shall consist of the following members, namely:— 

(a) the Minister in charge of the Ministry or Department 

of the Central Government dealing with the Power 

 ex officio Chairperson; 

(b) the Secretary to the Government of India, in charge of 

the Ministry or Department of the Central Government 

dealing with the Power 

 ex officio member; 

(c) the Secretary to the Government of India, in charge of 

the Ministry or Department of the Central Government 

dealing with the Petroleum and Natural Gas 

 ex officio member; 

                                                           
1. Ins. by Act of 28 of 2010, s. 2 (w.e.f. 24-8-2010). 



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(d) the Secretary to the Government of India, in charge of 

the Ministry or Department of the Central Government 

dealing with the Coal 

 ex officio member; 

(e) the Secretary to the Government of India, in charge of 

the Ministry or Department of the Central Government 

dealing with the Non-conventional Energy Sources 

 ex officio member; 

(f) the Secretary to the Government of India, in charge of 

the Ministry or Department of the Central Government 

dealing with the Atomic Energy 

 ex officio member; 

(g) the Secretary to the Government of India, in charge of 

the Ministry or Department of the Central Government 

dealing with the Consumer Affairs 

 ex officio member; 

(h) Chairman of the Central Electricity Authority 

established under the Electricity (Supply) Act, 1948 

(54 of 1948) 

 ex officio member; 

(i) Director-General of the Central Power Research 

Institute registered under the Karnataka Societies Act, 

1960 (Karnataka Act 17 of 1960) 

 ex officio member; 

(j) Executive Director of the Petroleum Conservation 

Research Association, a society registered under the 

Societies Registration Act, 1860 (XXI of 1860) 

 ex officio member; 

(k) Chairman-cum-Managing Director of the Central Mine 

Planning and Design Institute Limited, a company 

incorporated under the Companies Act, 1956                       

(1 of 1956) 

 ex officio member; 

(l) Director-General of the Bureau of Indian Standards 

established under the Bureau of Indian Standards Act, 

1986 (63 of 1986) 

 ex officio member; 

(m) Director-General of the National Test House, 

Department of Supply, Ministry of Commerce and 

Industry, Kolkata 

 ex officio member; 

(n) Managing Director of the Indian Renewable Energy 

Development Agency Limited, a company 

incorporated under the Companies Act, 1956                       

(1 of 1956) 

 ex officio member; 

(o) one member each from the five power regions 

representing the States of the region to be appointed 

by the Central Government 

 member; 

(p) such number of persons, not exceeding four as may be 

prescribed, to be appointed by the Central Government 

as members from amongst persons who are in the 

opinion of the Central Government capable of 

representing industry, equipment and appliance 

manufacturers, architects and consumers 

 member; 

(q) such number of persons, not exceeding two as may be 

nominated by the Governing Council as members 

 member; 

(r) Director-General of Bureau  ex officio member-

secretary. 

(3) The Governing Council may exercise all powers and do all acts and things which may be 

exercised or done by the Bureau. 



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(4) Every member referred to in clauses (o), (p) and (q) of sub-section (2) shall hold office for a term 

of three years from the date on which he enters upon his office. 

(5) The fee and allowances to be paid to the members referred to in clauses (o), (p) and (q) of                   

sub-section (2) and the manner of filling up of vacancies and the procedure to be followed in the 

discharge of their functions shall be such as may be prescribed. 

5. Meetings of Governing Council.—(1) The Governing Council shall meet at such times and 

places, and shall observe such rules of procedure in regard to the transaction of business at its meetings 

(including quorum at such meetings) as may be provided by regulations. 

(2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Governing Council, 

any other member chosen by the members present from amongst themselves at the meeting shall preside 

at the meeting. 

(3) All questions which come up before any meeting of the Governing Council shall be decided by a 

majority vote of the members present and voting, and in the event of an equality of votes, the Chairperson 

or in his absence, the person presiding, shall have a second or casting vote. 

6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee.—

No act or proceeding of the Bureau or the Governing Council or any Committee shall be invalid merely 

by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Bureau or the Governing Council or 

the Committee; or 

(b) any defect in the appointment of a person acting as a Director-General or Secretary of the 

Bureau or a member of the Governing Council or the Committee; or 

(c) any irregularity in the procedure of the Bureau or the Governing Council or the Committee not 

affecting the merits of the case. 

7. Removal of member from office.—The Central Government shall remove a member referred to 

in clauses (o), (p) and (q) of sub-section (2) of section 4 from office if he— 

(a) is, or at any time has been, adjudicated as insolvent; 

(b) is of unsound mind and stands so declared by a competent court; 

(c) has been convicted of an offence which, in the opinion of the Central Government, 

involves a moral turpitude; 

(d) has, in the opinion of the Central Government, so abused his position as to render his 

continuation in office detrimental to the public interest: 

Provided that no member shall be removed under this clause unless he has been given a 

reasonable opportunity of being heard in the matter. 

8. Constitution of Advisory Committees and other committees.—(1) Subject to any regulations 

made in this behalf, the Bureau shall, within six months from the date of commencement of this Act, 

constitute Advisory Committees for the efficient discharge of its functions. 

(2) Each Advisory Committee shall consist of a Chairperson and such other members as may be 

determined by regulations. 

(3) Without prejudice to the powers contained in sub-section (1), the Bureau may constitute, such 

number of technical committees of experts for the formulation of energy consumption standards or norms 

in respect of equipment or processes, as it considers necessary. 

9. Director-General of Bureau.—(1) The Central Government shall, by notification, appoint a 

Director-General from amongst persons of ability and standing, having adequate knowledge and 

experience in dealing with the matters relating to energy production, supply and energy management, 

standardisation and efficient use of energy and its conservation. 

(2) The Central Government shall, by notification, appoint any person not below the rank of Deputy 

Secretary to the Government of India as Secretary of the Bureau. 



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(3) The Director-General shall hold office for a term of 
1
[five years] from the date on which he enters 

upon his office or until he attains the age of sixty years, whichever is earlier. 

(4) The salary and allowances payable to the Director-General and other terms and conditions of his 

service and other terms and conditions of service of the Secretary of the Bureau shall be such as may be 

prescribed. 

(5) Subject to general superintendence, direction and management of the affairs by the Governing 

Council, the Director-General of the Bureau shall be the Chief Executive Authority of the Bureau. 

(6) The Director-General of the Bureau shall exercise and discharge such powers and duties of the 

Bureau as may be determined by regulations. 

10. Officers and employees of Bureau.—(1) 
2
[The Bureau] may appoint such other officers and 

employees in the Bureau as it considers necessary for the efficient discharge of its functions under this 

Act. 

(2) The terms and conditions of service of officers and other employees of the Bureau appointed 

under sub-section (1) shall be such as may be prescribed. 

11. Authentication of orders and decisions of Bureau.—All orders and decisions of the Bureau 

shall be authenticated by the signature of the Director-General or any other officer of the Bureau 

authorised by the Director-General in this behalf. 

CHAPTER III 

TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU 

12. Transfer of assets, liabilities and employees of Energy Management Centre.—(1) On and 

from the date of establishment of the Bureau— 

(a) any reference to the Energy Management Centre in any law other than this Act or in any 

contract or other instrument shall be deemed as a reference to the Bureau; 

(b) all properties and assets, movable and immovable of, or belonging to, the Energy 

Management Centre shall vest in the Bureau; 

(c) all the rights and liabilities of the Energy Management Centre shall be transferred to, and be 

the rights and liabilities of, the Bureau; 

(d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, 

all contracts entered into and all matters and things engaged to be done by, with or for the Energy 

Management Centre immediately before that date, for or in connection with the purposes of the said 

Centre shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the 

Bureau; 

(e) all sums of money due to the Energy Management Centre immediately before that date shall 

be deemed to be due to the Bureau; 

(f) all suits and other legal proceedings instituted or which could have been instituted by or 

against the Energy Management Centre immediately before that date may be continued or may be 

instituted by or against the Bureau; and 

(g) every employee holding any office under the Energy Management Centre immediately before 

that date shall hold his office in the Bureau by the same tenure and upon the same terms and 

conditions of service as respects remuneration, leave, provident fund, retirement or other terminal 

benefits as he would have held such office if the Bureau had not been established and shall continue 

to do so as an employee of the Bureau or until the expiry of six months from that date if such 

employee opts not to be the employee of the Bureau within such period. 

(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any 

other law for the time being in force, the absorption of any employee by the Bureau in its regular service 

under this section shall not entitle such employee to any compensation under that Act or other law and no 

such claim shall be entertained by any court, tribunal or other authority. 

                                                           
1. Subs. by Act 28 of 2010 s. 3, for “three years” (w.e.f. 24-8-2010). 
2. Subs. by s. 4, ibid., for “The Central Government” (w.e.f. 24-8-2010). 



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CHAPTER IV 

POWERS AND FUNCTIONS OF BUREAU 

13. Powers and functions of Bureau.—(1) The Bureau shall, effectively co-ordinate with designated 

consumers, designated agencies and other agencies, recognise and utilise the existing resources and 

infrastructure, in performing the functions assigned to it by or under this Act. 

(2) The Bureau may perform such functions and exercise such powers as may be assigned to it by or 

under this Act and in particular, such functions and powers include the function and power to— 

(a) recommend to the Central Government the norms for processes and energy consumption 

standards required to be notified under clause (a) of section 14; 
1
[(aa) recommend to the Central Government for issuing of the energy savings certificate under 

section 14A;] 

(b) recommend to the Central Government the particulars required to be displayed on label on 

equipment or on appliances and manner of their display under clause (d) of section 14; 

(c) recommend to the Central Government for notifying any user or class of users of energy as a 

designated consumer under clause (e) of section 14; 

(d) take suitable steps to prescribe guidelines for energy conservation building codes under clause 

(p) of section 14; 

(e) take all measures necessary to create awareness and disseminate information for efficient use 

of energy and its conservation; 

(f) arrange and organise training of personnel and specialists in the techniques for efficient use of 

energy and its conservation; 

(g) strengthen consultancy services in the field of energy conservation; 

(h) promote research and development in the field of energy conservation; 

(i) develop testing and certification procedure and promote testing facilities for certification and 

testing for energy consumption of equipment and appliances; 

(j) formulate and facilitate implementation of pilot projects and demonstration projects for 

promotion of efficient use of energy and its conservation; 

(k) promote use of energy efficient processes, equipment, devices and systems; 

(l) promote innovative financing of energy efficiency projects; 

(m) give financial assistance to institutions for promoting efficient use of energy and its 

conservation; 

(n) levy fee, as may be determined by regulations, for services provided for promoting efficient 

use of energy and its conservation; 

(o) maintain a list of accredited energy auditors as may be specified by regulations; 
2
[(p) specify, by regulations, the qualifications, criteria and conditions subject to which a person 

may be accredited as an energy auditor and the procedure for such accreditation;] 

(q) specify, by regulations, the manner and intervals of time in which the energy audit shall be 

conducted; 

(r) specify, by regulations, certification procedures for 
3
[energy auditors and energy managers] to 

be designated or appointed by designated consumers; 

(s) prepare educational curriculum on efficient use of energy and its conservation for educational 

institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such 

curriculum in their syllabus; 

1
[(sa) conduct examination for capacity building and strengthening of services in the field of 

energy conservation including certification of energy managers and energy auditors;] 

                                                           
1. Ins. by Act of 28 of 2010, s. 5 (w.e.f. 24-8-2010). 
2. Subs. by s. 5, ibid., for clause (p) (w.e.f. 24-8-2010). 
3. Subs. by s. 5, ibid., for “energy managers” (w.e.f. 24-8-2010). 



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(t) implement international co-operation programmes relating to efficient use of energy and its 

conservation as may be assigned to it by the Central Government; 

(u) perform such other functions as may be prescribed. 

CHAPTER V 

POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS 

CONSERVATION 

14. Power of Central Government to enforce efficient use of energy and its conservation.—The 

Central Government may, by notification, in consultation with the Bureau,— 

(a) specify the norms for processes and energy consumption standards for any equipment, 

appliance which consumes, generates, transmits or supplies energy; 

(b) specify equipment or appliance or class of equipments or appliances, as the case may be, for 

the purposes of this Act; 

(c) prohibit manufacture or sale or purchase or import of equipment or appliance specified under 

clause (b), unless such equipment or appliance conforms to energy consumption standards: 

1
[Provided that no notification prohibiting manufacture or sale or purchase or import of 

equipment or appliance shall be issued within a period of six months from the date of notification 

issued under clause (a) of this section: 

Provided further that the Central Government may, having regard to the market share and the 

technological development having impact on equipment or appliance, and for reasons to be recorded 

in writing, extend the said period of six months referred to in the first proviso by a further period not 

exceeding six months;] 

(d) direct display of such particulars on label on equipment or on appliance specified under        

clause (b) and in such manner as may be specified by regulations; 

(e) specify, having regard to the intensity or quantity of energy consumed and the amount of 

investment required for switching over to energy efficient equipments and capacity of industry to 

invest in it and availability of the energy efficient machinery and equipment required by the industry, 
2
[any user or class of users of energy in the energy intensive industries and other establishments as 

specified in the Schedule as a designated consumer] for the purposes of this Act; 

(f) alter the list of Energy Intensive Industries specified in the Schedule; 

(g) establish and prescribe such energy consumption norms and standards for designated 

consumers as it may consider necessary: 

Provided that the Central Government may prescribe different norms and standards for different 

designated consumers having regard to such factors as may be prescribed; 

(h) direct, having regard to quantity of energy consumed or the norms and standards of energy 

consumption specified under clause (a), the Energy Intensive Industries specified in the Schedule to 

get energy audit conducted by an accredited energy auditor in such manner and intervals of time as 

may be specified by regulations; 

(i) direct, if considered necessary for efficient use of energy and its conservation, any designated 

consumer to get energy audit conducted by an accredited energy auditor; 

(j) specify the matters to be included for the purposes of inspection under sub-section (2) of 

section 17; 

(k) direct any designated consumer to furnish to the designated agency, in such form and manner 

and within such period, as may be prescribed, the information with regard to the energy consumed 

and action taken on the recommendation of the accredited energy auditor; 

(l) direct any designated consumer to designate or appoint energy manager in charge of activities 

for efficient use of energy and its conservation and submit a report, in the form and manner as may be 

                                                           
1. Subs. by Act 28 of 2010, s. 6, for the proviso (w.e.f. 24-8-2010). 
2. Subs. by s. 6, ibid., for “any user or class of users of energy as a designated consumer” (w.e.f. 24-8-2010). 



10 
 

prescribed, on the status of energy consumption at the end of every financial year to the designated 

agency; 

(m) prescribe minimum qualification for 
1
[energy auditors and energy managers] to be designated 

or appointed under clause (l); 

(n) direct every designated consumer to comply with energy consumption norms and standards; 

(o) direct any designated consumer, who does not fulfil the energy consumption norms and 

standards prescribed under clause (g), to prepare a scheme for efficient use of energy and its 

conservation and implement such scheme keeping in view the economic viability of the investment in 
2
[such form, the time within which and the manner] as may be prescribed; 

(p) prescribe energy conservation building codes for efficient use of energy and its conservation 

in the building or building complex; 

(q) amend the energy conservation building codes to suit the regional and local climatic 

conditions; 

(r) direct every owner or occupier of the building or building complex, being a designated 

consumer to comply with the provisions of energy conservation building codes for efficient use of 

energy and its conservation; 

(s) direct, any designated consumer referred to in clause (r), if considered necessary, for efficient 

use of energy and its conservation in his building to get energy audit conducted in respect of such 

building by an accredited energy auditor in such manner and intervals of time as may be specified by 

regulations; 

(t) take all measures necessary to create awareness and disseminate information for efficient use 

of energy and its conservation; 

(u) arrange and organise training of personnel and specialists in the techniques for efficient use of 

energy and its conservation; 

(v) take steps to encourage preferential treatment for use of energy efficient equipment or 

appliances: 

Provided that the powers under clauses (p) to (s) shall be exercised in consultation with the concerned 

State. 

3
[14A. Power of Central Government to issue energy savings certificate.—(1) The Central 

Government may issue the energy savings certificate to the designated consumer whose energy 

consumption is less than the prescribed norms and standards in accordance with the procedure as may be 

prescribed. 

(2) The designated consumer whose energy consumption is more than the prescribed norms and 

standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms 

and standards. 

14B. Power of Central Government to specify value of energy.—The Central Government may, in 

consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed 

for the purposes of this Act.] 

CHAPTER VI 

POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS 

CONSERVATION 

15. Power of State Government to enforce certain provisions for efficient use of energy and its 

conservation.—The State Government may, by notification, in consultation with the Bureau— 

(a) amend the energy conservation building codes to suit the regional and local climatic 

conditions and may, by rules made by it, specify and notify energy conservation building codes with 

respect to use of energy in the buildings; 

                                                           
1. Subs. by Act 28 of 2010, s. 6, for “energy managers” (w.e.f. 24-8-2010). 
2. Subs. by s. 6, ibid., for “such form and manner” (w.e.f. 24-8-2010). 
3. Ins. by s. 7, ibid. (w.e.f. 24-8-2010). 



11 
 

(b) direct every owner or occupier of a building or building complex being a designated consumer 

to comply with the provisions of the energy conservation building codes; 

(c) direct, if considered necessary for efficient use of energy and its conservation, any designated 

consumer referred to in clause (b) to get energy audit conducted by an accredited energy auditor in 

such manner and at such intervals of time as may be specified by regulations; 

(d) designate any agency as designated agency to coordinate, regulate and enforce provisions of 

this Act within the State; 

(e) take all measures necessary to create awareness and disseminate information for efficient use 

of energy and its conservation; 

(f) arrange and organise training of personnel and specialists in the techniques for efficient use of 

energy and its conservation; 

(g) take steps to encourage preferential treatment for use of energy efficient equipment or 

appliances; 

(h) direct, any designated consumer to furnish to the designated agency, in such form and manner 

and within such period as may be specified by rules made by it, information with regard to the energy 

consumed by such consumer; 

(i) specify the matters to be included for the purposes of inspection under sub-section (2) of 

section 17. 

16. Establishment of Fund by State Government.—(1) The State Government shall constitute a 

Fund to be called the State Energy Conservation Fund for the purposes of promotion of efficient use of 

energy and its conservation within the State. 

(2) To the Fund shall be credited all grants and loans that may be made by the State Government or, 

Central Government or any other organisation or individual for the purposes of this Act. 

(3) The Fund shall be applied for meeting the expenses incurred for implementing the provisions of 

this Act. 

(4) The Fund created under sub-section (1) shall be administered by such persons or any authority and 

in such manner as may be specified in the rules made by the State Government. 

17. Power of inspection.—(1) The designated agency may appoint, after the expiry of five years 

from the date of commencement of this Act, as many inspecting officers as may be necessary for the 

purpose of ensuring compliance with energy consumption standards specified under clause (a) of               

section 14 or ensure display of particulars on label on equipment or appliance specified under clause (b) 

of section 14 or for the purpose of performing such other functions as may be assigned to them. 

(2) Subject to any rules made under this Act, an inspecting officer shall have power to— 

(a) inspect any operation carried on or in connection with the equipment or appliance specified 

under clause (b) of section 14 or in respect of which energy standards under clause (a) of section 14 

have been specified; 

(b) enter any place of designated consumer at which the energy is used for any activity and may 

require any proprietor, employee, director, manager or secretary or any other person who may be 

attending in any manner to or helping in, carrying on any activity with the help of energy— 

(i) to afford him necessary facility to inspect— 

(A) any equipment or appliance as he may require and which may be available at such 

place; 

(B) any production process to ascertain the energy consumption norms and standards; 

(ii) to make an inventory of stock of any equipment or appliance checked or verified by him; 

 

 



12 
 

(iii) to record the statement of any person which may be useful for, or relevant to, for efficient 

use of energy and its conservation under this Act. 

(3) An inspecting officer may enter any place of designated consumer— 

(a) where any activity with the help of energy is carried on; and 

(b) where any equipment or appliance notified under clause (b) of section 14 has been kept, 

during the hours at which such place is open for production or conduct of business connected therewith. 

(4) An inspecting officer acting under this section shall, on no account, remove or cause to be 

removed from the place wherein he has entered, any equipment or appliance or books of account or other 

documents. 

18. Power of Central Government or State Government to issue directions.—The Central 

Government or the State Government may, in the exercise of its powers and performance of its functions 

under this Act and for efficient use of energy and its conservation, issue such directions in writing as it 

deems fit for the purposes of this Act to any person, officer, authority or any designated consumer and 

such person, officer or authority or any designated consumer shall be bound to comply with such 

directions. 

Explanation.—For the avoidance of doubts, it is hereby declared that the power to issue directions 

under this section includes the power to direct— 

(a) regulation of norms for process and energy consumption standards in any industry or building 

or building complex; or 

(b) regulation of the energy consumption standards for equipment and appliances. 

CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT OF BUREAU 

19. Grants and loans by Central Government.—The Central Government may, after due 

appropriation made by Parliament by law in this behalf, make to the Bureau or to the State Governments 

grants and loans of such sums of money as the Central Government may consider necessary. 

20. Establishment of Fund by Central Government.—(1) There shall be constituted a Fund to be 

called as the Central Energy Conservation Fund and there shall be credited thereto— 

(a) any grants and loans made to the Bureau by the Central Government under section 19; 

(b) all fees received by the Bureau under this Act; 

(c) all sums received by the Bureau from such other sources as may be decided upon by the 

Central Government. 

(2) The Fund shall be applied for meeting— 

(a) the salary, allowances and other remuneration of Director-General, Secretary, officers and 

other employees of the Bureau; 

(b) expenses of the Bureau in the discharge of its functions under section 13; 

(c) fee and allowances to be paid to the members of the Governing Council under sub-section (5) 

of section 4; 

(d) expenses on objects and for purposes authorised by this Act. 

21. Borrowing powers of Bureau.—(1) The Bureau may, with the consent of the Central 

Government or in accordance with the terms of any general or special authority given to it by the Central 

Government, borrow money from any source as it may deem fit for discharging all or any of its functions 

under this Act. 

(2) The Central Government may guarantee, in such manner as it thinks fit, the repayment of the 

principal and the payment of interest thereon with respect to the loans borrowed by the Bureau under                 

sub-section (1). 



13 
 

22. Budget.—The Bureau shall prepare, in such form and at such time in each financial year as may 

be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the 

Bureau and forward the same to the Central Government. 

23. Annual report.—The Bureau shall prepare, in such form and at such time in each financial year 

as may be prescribed, its annual report, giving a full account of its activities during the previous financial 

year, and submit a copy thereof to the Central Government. 

24. Annual report to be laid before Parliament.—The Central Government shall cause the annual 

report referred to in section 23 to be laid, as soon as may be after it is received, before each House of 

Parliament. 

25. Accounts and audit.—(1) The Bureau shall maintain proper accounts and other relevant records 

and prepare an annual statement of accounts in such form as may be prescribed by the Central 

Government in consultation with the Comptroller and Auditor-General of India. 

(2) The accounts of the Bureau shall be audited by the Comptroller and Auditor-General of India at 

such intervals as may be specified by him and any expenditure incurred in connection with such audit 

shall be payable by the Bureau to the Comptroller and Auditor-General. 

(3) The Comptroller and Auditor-General of India and any other person appointed by him in 

connection with the audit of the accounts of the Bureau shall have the same rights and privileges and 

authority in connection with such audit as the Comptroller and Auditor-General generally has in 

connection with the audit of the Government accounts, and in particular, shall have the right to demand 

the production of books, accounts, connected vouchers and other documents and papers and to inspect 

any of the offices of the Bureau. 

(4) The accounts of the Bureau as certified by the Comptroller and Auditor-General of India or any 

other person appointed by him in this behalf together with the audit report thereon shall be forwarded 

annually to the Central Government and that Government shall cause the same to be laid before each 

House of Parliament. 

CHAPTER VIII 

PENALTIES AND ADJUDICATION 

26. Penalty.—(1) If any person fails to comply with the provisions of clause (c) or clause (d) or 

clause (h) or clause (i) or clause (k) or clause (l) 
1
*** or clause (r) or clause (s) of section 14 or clause (b) 

or clause (c) or clause (h) of section 15, he shall be liable to a penalty which shall not exceed 
2
[ten lakh 

rupees] for each such failure and, in the case of continuing failure, with an additional penalty which may 

extend to 
3
[ten thousand rupees] for every day during which such failure continues: 

Provided that no person shall be liable to pay penalty within five years from the date of 

commencement of this Act. 

4
[(1A) If any person fails to comply with the provisions of clause (n) of section 14, he shall be liable 

to a penalty which shall not exceed ten lakh rupees and, in the case of continuing failure, with an 

additional penalty which shall not be less than the price of every metric ton of oil equivalent of energy, 

prescribed under this Act, that is in excess of the prescribed norms.] 

(2) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of 

land revenue. 

27. Power to adjudicate.—(1) For the purpose of adjudging under section 26, the State Commission 

shall appoint any of its members to be an adjudicating officer for holding an inquiry in such manner as 

may be prescribed by the Central Government, after giving any person concerned a reasonable 

opportunity of being heard for the purpose of imposing any penalty. 

(2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the 

attendance of any person acquainted with the facts and circumstances of the case to give evidence or 

produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to 

                                                           
1. The words, brackets and letter “or clause (n)” omitted by Act of 28 of 2010, s. 8 (w.e.f. 24-8-2010). 
2. Subs. by s. 8, ibid., for “ten thousand rupees” (w.e.f. 24-8-2010). 
3. Subs. by s. 8, ibid., for “one thousand rupees” (w.e.f. 24-8-2010). 
4. Ins. by s. 8, ibid. (w.e.f. 24-8-2010). 



14 
 

the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to 

comply with the provisions of any of the clauses of the sections specified in section 26, he may impose 

such penalty as he thinks fit in accordance with the provisions of any of those clauses of that section: 

Provided that where a State Commission has not been established in a State, the Government of that 

State shall appoint any of its officer not below the rank equivalent to a Secretary dealing with legal affairs 

in that State to be an adjudicating officer for the purposes of this section and such officer shall cease to be 

an adjudicating officer immediately on the appointment of an adjudicating officer by the State 

Commission on its establishment in that State: 

Provided further that where an adjudicating officer appointed by a State Government ceased to be an 

adjudicating officer, he shall transfer to the adjudicating officer appointed by the State Commission all 

matters being adjudicated by him and thereafter the adjudicating officer appointed by the State 

Commission shall adjudicate the penalties on such matters. 

28. Factors to be taken into account by adjudicating officer.—While adjudicating the quantum of 

penalty under section 26, the adjudicating officer shall have due regard to the following factors, 

namely:— 

(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a 

result of the default; 

(b) the repetitive nature of the default. 

29. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit 

or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the 

Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by 

any court or other authority in respect of any action taken or to be taken in pursuance of any power 

conferred by or under this Act. 

CHAPTER IX 

APPELLATE TRIBUNAL FOR ENERGY CONSERVATION 

1
[30. Appellate Tribunal.—The Appellate Tribunal established under section 110 of the Electricity 

Act, 2003 (36 of 2003) shall, without prejudice to the provisions of the Electricity Act, 2003, be the 

Appellate Tribunal for the purposes of this Act and hear appeals against the orders of the adjudicating 

officer or the Central Government or the State Government or any other authority under this Act.] 

31. Appeal to Appellate Tribunal.—(1) Any person aggrieved, by an order made by an adjudicating 

officer or the Central Government or the State Government or any other authority under this Act, may 

prefer an appeal to the Appellate Tribunal for Energy Conservation: 

Provided that any person, appealing against the order of the adjudicating officer levying any penalty, 

shall, while filing the appeal, deposit the amount of such penalty: 

Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the 

deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense 

with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation 

of penalty. 

(2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date 

on which a copy of the order made by the adjudicating officer or the Central Government or the State 

Government or any other authority is received by the aggrieved person and it shall be in such form, 

verified in such manner and be accompanied by such fee as may be prescribed: 

Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of 

forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. 

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties 

to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, 

modifying or setting aside the order appealed against. 

                                                           
1. Subs. by Act 28 of 2010, s. 9, for section 30 (w.e.f. 24-8-2010). 



15 
 

(4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and 

to the concerned adjudicating officer or the Central Government or the State Government or any other 

authority. 

(5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as 

expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one 

hundred and eighty days from the date of receipt of the appeal: 

Provided that where an appeal could not be disposed of within the said period of one hundred and 

eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal 

within the said period. 

(6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of 

any order made by the adjudicating officer or the Central Government or the State Government or any 

other authority under this Act, as the case may be, in relation to any proceeding, on its own motion or 

otherwise, call for the records of such proceedings and make such order in the case as it thinks fit. 

1
[31A. Procedure and powers of Appellate Tribunal.—The provisions of sections 120 to 123 (both 

inclusive) of the Electricity Act, 2003 (36 of 2003) shall, mutatis mutandis, apply to the Appellate 

Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its function 

under the Electricity Act, 2003.] 

32. Composition of Appellate Tribunal. [Omitted by the Energy Conservation (Amendment) Act, 2010 

(28 of 2010), s.11 (w.e.f. 24-8-2010)]. 

33. Qualifications for appointment of Chairperson and Members of Appellate Tribunal. [Omitted by 

s.11, ibid. (w.e.f. 24-8-2010)]. 

34. Term of office. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

35. Terms and conditions of service. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

36. Vacancies. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

37. Resignation and removal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

38. Member to act as Chairperson in certain circumstances. [Omitted by s.11, ibid. (w.e.f.                              

24-8-2010)]. 

39. Staff of Appellate Tribunal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

40. Procedure and powers of Appellate Tribunal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

41. Distribution of business amongst Benches. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

42. Power of Chairperson to transfer cases. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

43. Decision to be by majority. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]. 

44. Right of appellant to take assistance of legal practitioner or accredited auditor and of 

Government to appoint presenting officers.—(1) A person preferring an appeal to the Appellate 

Tribunal under this Act may either appear in person or take the assistance of a legal practitioner or an 

accredited energy auditor of his choice to present his case before the Appellate Tribunal, as the case may 

be. 

(2) The Central Government or the State Government may authorise one or more legal practitioners 

or any of its officers to act as presenting officers and every person so authorised may present the case 

with respect to any appeal before the Appellate Tribunal, as the case may be. 

45. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Appellate 

Tribunal, may,  file an  appeal to the Supreme Court within sixty days from the date of  communication of   

                                                           
1. Ins. by Act 28 of 2010, s. 10 (w.e.f. 24-8-2010). 



16 
 

the decision or order of the Appellate Tribunal to him, on any one or more of the grounds specified in 

section 100 of the Code of Civil Procedure, 1908 (5 of 1908): 

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient 

cause from filing the appeal within the said period, allow it to be filed within a further period not 

exceeding sixty days. 

CHAPTER X 

MISCELLANEOUS 

46. Power of Central Government to issue directions to Bureau.—(1) Without prejudice to the 

foregoing provisions of this Act, the Bureau shall, in exercise of its powers or the performance of its 

functions under this Act, be bound by such directions on questions of policy as the Central Government 

may give in writing to it from time to time: 

Provided that the Bureau shall, as far as practicable, be given an opportunity to express its views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government, whether a question is one of policy or not, shall be final. 

47. Power of Central Government to supersede Bureau.—(1) If at any time the Central 

Government is of opinion— 

(a) that on account of grave emergency, the Bureau is unable to discharge the functions and 

duties imposed on it by or under the provisions of this Act; or 

(b) that the Bureau has persistently made default in complying with any direction issued by the 

Central Government under this Act or in discharge of the functions and duties imposed on it by or 

under the provisions of this Act and as a result of such default, the financial position of the Bureau 

had deteriorated or the administration of the Bureau had deteriorated; or 

(c) that circumstances exist which render it necessary in the public interest so to do, the Central 

Government may, by notification, supersede the Bureau for such period, not exceeding six months, as 

may be specified in the notification. 

(2) Upon the publication of a notification under sub-section (1) superseding the Bureau,— 

(a) all the members referred to in clauses (o), (p) and (q) of sub-section (2) of section 4 shall, as 

from the date of supersession, vacate their offices as such; 

(b) all the powers, functions and duties which may, by or under the provisions of this Act, be 

exercised or discharged by or on behalf of the Bureau, shall until the Bureau is reconstituted under 

sub-section (3), be exercised and discharged by such person or persons as the Central Government 

may direct; and 

(c) all property owned or controlled by the Bureau shall, until the Bureau is reconstituted under 

sub-section (3), vest in the Central Government. 

(3) On the expiration of the period of supersession specified in the notification issued under                    

sub-section (1), the Central Government may reconstitute the Bureau by a fresh appointment and in such 

case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be 

deemed disqualified for appointment: 

Provided that the Central Government may, at any time, before the expiration of the period of  

supersession, take action under this sub-section. 

(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of 

any action taken under this section and the circumstances leading to such action to be laid before each 

House of Parliament at the earliest. 

48. Default by companies.—(1) Where a company makes a default in complying with the provisions 

of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or 

clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, every person who at the time 

of such contravention was in charge of, and was responsible to the company for the conduct of the 

business of the company, as well as the company, shall be deemed to have acted in contravention of the 



17 
 

said provisions and shall be liable to be proceeded against and imposed penalty under section 26 

accordingly: 

Provided that nothing contained in this sub-section shall render any such person liable for penalty 

provided in this Act if he proves that the contravention of the aforesaid provisions was committed without 

his knowledge or that he exercised all due diligence to prevent the contravention of the aforesaid 

provision. 

(2) Notwithstanding anything contained in sub-section (1), where any contravention of the provisions 

of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or 

clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15 has been committed with the 

consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary 

or other officer of the company, such director, manager, secretary or other officer shall also be deemed to 

have contravened the said provisions and shall be liable to be proceeded for imposition of penalty 

accordingly. 

Explanation.—For the purposes of this section, “company” means a body corporate and includes a 

firm or other association of individuals. 

49. Exemption from tax on income.—Notwithstanding anything contained in the Income-tax Act, 

1961 (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits or 

gains— 

(a) the Bureau; 

(b) the existing Energy Management Centre from the date of its constitution to the date of 

establishment of the Bureau, 

shall not be liable to pay any income-tax or any tax in respect of their income, profits or gains derived. 

50. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 

lie against the Central Government or Director-General or Secretary or State Government or any officer 

of those Governments or State Commission or its members or any member or officer or other employee 

of the Bureau for anything which is in good faith done or intended to be done under this Act or the rules 

or regulations made thereunder. 

51. Delegation.—The Bureau may, by general or special order in writing, delegate to any member, 

member of the committee, officer of the Bureau or any other person subject to such conditions, if any, as 

may be specified in the order, such of its powers and functions under this Act (except the powers under 

section 58) as it may deem necessary. 

52. Power to obtain information.—Every designated consumer or manufacturer of equipment or 

appliance specified under clause (b) of section 14 shall supply the Bureau with such information, and with 

such samples of any material or substance used in relation to any equipment or appliance, as the Bureau 

may require. 

53. Power to exempt.—If the Central Government or the State Government is of the opinion that it is 

necessary or expedient so to do in the public interest, it may, by notification and subject to such 

conditions as may be specified in the notification, exempt any designated consumer or class of designated 

consumers from application of all or any of the provisions of this Act: 

Provided that the Central Government or the State Government, as the case may be, shall not grant 

exemption to any designated consumer or class of designated consumers for a period exceeding five 

years: 

Provided further that the Central Government or the State Government, as the case may be, shall 

consult the Bureau of Energy Efficiency before granting such exemption. 

54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State 

Commission, Director-General, Secretary, members, officers and employees of the Bureau to be 

public servants.—The 
1
*** members, Director-General, Secretary, officers and other employees of the 

Bureau shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this 

Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

                                                           
1. Certain words omitted by Act of 28 of 2010, s. 12 (w.e.f. 24-8-2010). 



18 
 

55. Power of Central Government to issue directions.—The Central Government may give 

directions to a State Government or the Bureau as to carrying out into execution of this Act in the State. 

56. Power of Central Government to make rules.—(1) The Central Government may, by 

notification, make rules for carrying out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may 

provide for all or any of the following matters, namely:— 

(a) such number of persons to be appointed as members by the Central Government under clauses 

(o), (p) and (q) of sub-section (2) of section 4; 

(b) the fee and allowances to be paid to the members under sub-section (5) of section 4; 

(c) the salary and allowances payable to the Director-General and other terms and conditions of 

his service and other terms and conditions of service of the Secretary of the Bureau under                             

sub-section (4) of section 9; 

(d) the terms and conditions of service of officers and other employees of the Bureau under             

sub-section (2) of section 10; 

(e) performing such other functions by the Bureau, as may be prescribed, under clause (u) of                 

sub-section (2) of section 13; 

(f) the energy consumption norms and standards for designated consumers under clause (g) of 

section 14; 

(g) prescribing the different norms and standards for different designated consumers under the 

proviso to clause (g) of section 14; 

(h) the form and manner and the time within which information with regard to energy consumed 

and the action taken on the recommendations of the accredited energy auditor be furnished under 

clause (k) of section 14; 

(i) the form and manner in which the status of energy consumption be submitted under clause (i) 

of section 14; 

(j) the minimum qualifications for 
1
[energy auditors and energy managers] under clause (m) of 

section 14; 

(k) the form and manner for preparation of scheme and its implementation under clause (o) of 

section 14; 

(l) the energy conservation building codes under clause (p) of section 14; 

2
[(la) prescribing the procedure for issuing the energy savings certificate under sub-section (1) of 

section 14A; 

(laa) the value of per metric ton of oil equivalent of energy consumed under section 14B;] 

(m) the matters relating to inspection under sub-section (2) of section 17; 

(n) the form in which, and the time at which, the Bureau shall prepare its budget under section 22; 

(o) the form in which, and the time at which, the Bureau shall prepare its annual report under 

section 23; 

(p) the form in which the accounts of the Bureau shall be maintained under section 25; 

(q) the manner of holding inquiry under sub-section (1) of section 27; 

(r) the form and fee for filing appeal under sub-section (2) of section 31; 

3
*  *   *   *   * 

 

                                                           
1. Subs. by Act 28 of 2010, s. 13, for “energy managers” (w.e.f. 24-8-2010). 
2. Ins. by s. 13, ibid. (w.e.f. 24-8-2010). 
3. Cls. (s), (t) and (u) omitted by s. 13, ibid. (w.e.f. 24-8-2010). 



19 
 

(v) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, or may be made, by rules. 

57. Power of State Government to make rules.—(1) The State Government may, by notification, 

make rules for carrying out the provisions of this Act and not inconsistent with the rules, if any, made by 

the Central Government. 

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may 

provide for all or any of the following matters, namely:— 

(a) energy conservation building codes under clause (a) of section 15; 

(b) the form, the manner and the period within which information with regard to energy 

consumption shall be furnished under clause (h) of section 15; 

(c) the person or any authority who shall administer the Fund and the manner in which the Fund 

shall be administered under sub-section (4) of section 16; 

(d) the matters to be included for the purposes of inspection under sub-section (2) of section 17; 

(e) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, or may be made, by rules. 

58. Power of Bureau to make regulations.—(1) The Bureau may, with the previous approval of the 

Central Government and subject to the condition of previous publication, by notification, make 

regulations not inconsistent with the provisions of this Act and the rules made thereunder to carry out the 

purposes of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the times and places of the meetings of the Governing Council and the procedure to be 

followed at such meetings under sub-section (1) of section 5; 

(b) the members of advisory committees constituted under sub-section (2) of section 8; 

(c) the powers and duties that may be exercised and discharged by the Director-General of the 

Bureau under sub-section (6) of section 9; 

(d) the levy of fee for services provided for promoting efficient use of energy and its conservation 

under clause (n) of sub-section (2) of section 13; 

(e) the list of accredited energy auditors under clause (o) of sub-section (2) of section 13; 

1
[(f) the qualifications, criteria and conditions subject to which a person may be accredited as an 

energy auditor and the procedure for such accreditation under clause (p) of sub-section (2) of                 

section 13;] 

(g) the manner and the intervals of time in which the energy audit shall be conducted under clause 

(q) of sub-section (2) of section 13; 

(h) certification procedure for 
2
[energy auditors and energy managers] under clause (r) of                 

sub-section (2) of section 13; 

(i) particulars required to be displayed on label and the manner of their display under clause (d) of 

section 14; 

(j) the manner and the intervals of time for conduct of energy audit under clause (h) or clause (s) 

of section 14; 

(k) the manner and the intervals of time for conducting energy audit by an accredited energy 

auditor under clause (c) of section 15; 

(l) any other matter which is required to be, or may be, specified. 

59. Rules and regulations to be laid before Parliament and State Legislature.—(1) Every rule 

made by the Central Government and every regulation made under this Act shall be laid, as soon as may 

                                                           
1. Subs. by Act 28 of 2010, s. 14, for clause (f) (w.e.f. 24-8-2010). 
2. Subs. by s. 14, ibid., for “energy managers” (w.e.f. 24-8-2010). 



20 
 

be after it is made, before each House of Parliament while it is in session, for a total period of thirty days 

which may be comprised in one session or in two or more successive sessions, and if, before the expiry of 

the session immediately following the session or the successive sessions aforesaid, both Houses agree in 

making any modification in the rule or regulation, or both Houses agree that the rule or regulation should 

not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no 

effect, as the case may be; so, however, that any such modification or annulment shall be without 

prejudice to the validity of anything previously done under that rule or regulation. 

(2) Every rule made by the State Government shall be laid, as soon as may be after it is made, before 

each House of the State Legislature where it consists of two Houses, or where such Legislature consists of 

one House, before that House. 

60. Application of other laws not barred.—The provisions of this Act shall be in addition to, and 

not in derogation of, the provisions of any other law for the time being in force. 

61. Provisions of Act not to apply in certain cases.—The provisions of this Act shall not apply to 

the Ministry or Department of the Central Government dealing with Defence, Atomic Energy or such 

other similar Ministries or Departments or undertakings or Boards or institutions under the control of such 

Ministries or Departments as may be notified by the Central Government. 

62. Power to remove difficulty.—(1) If any difficulty arises in giving effect to the provisions of this 

Act, the Central Government may, by order, published in the Official Gazette, make such provisions not 

inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 

Provided that no such order shall be made under this section after the expiry of two years from the 

date of the commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament.  



21 
 

THE SCHEDULE 

[See section 2(s)] 

LIST OF ENERGY INTENSIVE INDUSTRIES AND OTHER ESTABLISHMENTS 1*** 

1. Aluminium; 

2. Fertilizers; 

3. Iron and Steel; 

4. Cement; 

5. Pulp and paper; 

6. Chlor Alkali; 

7. Sugar; 

8. Textile; 

9. Chemicals; 

10. Railways; 

11. Port Trust; 

12. Transport Sector (industries and services); 

13. Petrochemical, Gas Crackers, Naphtha Crackers and Petroleum Refineries; 

14. Thermal power stations, hydel power stations, electricity transmission companies and distribution 

companies; 

15. Commercial buildings or establishments. 

 

_____________ 

                                                           
1. The words “specified as designated consumers” omitted by Act of 28 of 2010, s. 15 (w.e.f. 24-8-2010).