If the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the State Commission under section 62, the State Government shall, notwithstanding any direction which may be given under section 108, pay, in advance and in such manner as may be specified, the amount to compensate the person affected by the grant of subsidy in the manner the State Commission may direct, as a condition for the licence or any other person concerned to implement the subsidy provided for by the State Government:
Provided that no such direction of the State Government shall be operative if the payment is not made in accordance with the provisions contained in this section and the licensee shall charge the tariff fixed by the State Commission without giving effect to the subsidy of the State Government.
Legal Commentary & Landmark Judgments: Section 65
Section 65 of the Act provides for the provision of subsidies by the State Government, requiring that if a State Government requires the grant of any subsidy to any consumer category, it must pay the entire subsidy amount in advance into the licensee's account.
Distribution utilities must reconcile state subsidy receipts monthly: if the state government delays advance subsidy tranches under Section 65, file an immediate tariff implementation report with the SERC seeking authorization to bill consumers at full unsubsidized rates.