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 any licensee or generating company on payment of the transmission charges; or by any consumer on payment of the transmission charges and surcharge.
Legal Commentary & Landmark Judgments: Section 40
Section 40 of the Electricity Act defines the duties of transmission licensees, mandating non-discriminatory open access across all licensed transmission lines.
This provision ensures that independent private transmission project developers (such as those operating under tariff-based competitive bidding) function on the same non-discriminatory open-access terms as state or central public sector utilities.
Section 40 reinforces the structural unbundling mandated by the 2003 Act, separating transmission (pure transportation) from generation and distribution, thereby preventing transmission licensees from engaging in electricity trading or preferential dispatch.