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Section 25: Inter-State, regional and inter-regional transmission

Electricity Act • Official Statutory Text & Practice Guide

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Act 2003
Section 24 All 185 Sections of Electricity Act Section 26

Legal Commentary & Landmark Judgments: Section 25

Section 25 of the Electricity Act, 2003 mandates the Central Government to facilitate and co-ordinate the inter-State transmission of electricity, ensuring the optimal development and integration of regional and national transmission systems across India.

  • Central Governmental Responsibility for Inter-State Transmission: Places the strategic responsibility on the Central Government to make comprehensive schemes and coordinate the integrated development of inter-State and inter-regional transmission corridors.
  • Integration of National Grid Infrastructure: Directs national transmission planning towards eliminating regional power transfer bottlenecks and enabling frictionless bulk power transfers between energy-surplus and energy-deficit regions.
  • Coordination with Central Transmission Utility (CTU) and CEA: Requires seamless coordination between the Ministry of Power, CEA, and the CTU to formulate long-term national transmission network plans under Section 38.
Key Landmark Precedents:
  • Power Grid Corporation of India Ltd. v. CERC (2016) APTEL Appeal No. 134 of 2015: APTEL held that inter-State transmission under Section 25 is a critical national asset, requiring coordinated regulatory planning to ensure transmission infrastructure precedes generation capacity additions.
  • PTC India Ltd. v. Central Electricity Regulatory Commission (2010) 4 SCC 603: The Constitution Bench highlighted that Section 25 forms part of the national integration policy of the 2003 Act, shifting transmission from fragmented state pockets to an interconnected, pan-Indian synchronous grid.
Courtroom Practice & Strategic Litigation Guidance:

In inter-State transmission dispute litigation, invoke Section 25 to establish that inter-State transmission line allocations and point-of-connection (PoC) sharing mechanisms are matters of national grid planning governed strictly by CERC rather than state-level regulatory agencies.

Section 24 All 185 Sections of Electricity Act Section 26