Section 165: Amendment of sections 40 and 41 of Act 1 of 1894

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 165

Section 165 of the Act amends Sections 40 and 41 of the Land Acquisition Act, 1894, providing that the acquisition of land for the construction of electricity supply works or generating stations shall be deemed to be an acquisition for a public purpose.

  • Statutory Deemed Public Purpose: Classifies land acquisition for power stations, substations, and transmission corridors conclusively as a 'public purpose' under eminent domain legislation.
  • Fast-Track Infrastructure Acquisition: Enables governments to invoke urgency clauses to acquire land for critical electricity generation and grid stability projects.
  • Full Application of Fair Compensation Standards: Guarantees that affected landowners receive full market compensation, rehabilitation, and resettlement entitlements under contemporary land acquisition statutes.
Key Landmark Precedents:
  • Power Grid Corp. of India Ltd. v. Century Textiles & Industries Ltd. (2017) 5 SCC 143: Supreme Court affirmed that power generation and transmission infrastructure are public purposes of the highest national priority justifying compulsory acquisition.
  • Energy Watchdog v. CERC (2017) 14 SCC 80: Affirmed the sovereign public character of electricity supply infrastructure.
  • State of W.B. v. Pradip Kumar Roy AIR 1969 SC 1201: Affirmed that public utility land acquisitions enjoy high judicial deference.
Courtroom Practice & Strategic Litigation Guidance:

In land acquisition proceedings for power substations, ensure the acquisition notification explicitly references the public purpose declaration under Section 165 to defeat private landowner challenges alleging lack of public necessity.