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Section 102: Grants and loans by State Government

Electricity Act • Official Statutory Text & Practice Guide

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Act 2003
Section 101 All 185 Sections of Electricity Act Section 103

Legal Commentary & Landmark Judgments: Section 102

Section 102 of the Act authorizes the State Government to make grants and loans to the State Electricity Regulatory Commission to finance its operational and regulatory functions.

  • State Legislative Appropriation Mechanism: Authorizes state budgetary allocations to fund the administrative expenses and judicial infrastructure of the SERC.
  • Protection of State Regulatory Independence: Ensures that State Commissions are not starved of funds by recalcitrant state finance departments.
  • State Legislative Scrutiny: Requires all grants and loans to be appropriated by law by the State Legislature.
Key Landmark Precedents:
  • State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Supreme Court held that State Governments have an affirmative constitutional duty to provide adequate fiscal resources under Section 102 to maintain independent State Commissions.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Affirmed that adequate state funding ensures Commissions recruit competent technical and legal officers.
  • West Bengal Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715: Affirmed that state regulatory bodies require secure statutory financial backing.
Courtroom Practice & Strategic Litigation Guidance:

Where a State Government delays budgetary disbursements to a State Commission to exert political pressure on tariff decisions, public interest litigants can file a writ of mandamus citing Section 102 and Utility Users' Welfare Association.

Section 101 All 185 Sections of Electricity Act Section 103