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Section 75: Directions by Central Government to Authority

Electricity Act • Official Statutory Text & Practice Guide

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Act 2003
Section 74 All 185 Sections of Electricity Act Section 76

Legal Commentary & Landmark Judgments: Section 75

Section 75 of the Act provides that the Central Electricity Authority shall be guided by such directions on questions of policy as the Central Government may give in writing from time to time.

  • Central Sovereign Directive Authority: Empowers the Central Government to issue binding written policy directions to the Authority on matters of national energy security and international grid interconnections.
  • Strict Substantive Restriction to Policy Questions: Confines government directions strictly to broad policy matters, preserving the CEA's technical and engineering independence.
  • Mandatory Opportunity of Hearing for CEA: Directs that before deciding whether a question is one of policy, the Central Government shall give a reasonable opportunity to the Authority to express its views.
Key Landmark Precedents:
  • State of Rajasthan v. Union of India (1977) 3 SCC 592: Supreme Court affirmed that sovereign policy directives cannot be utilized to usurp specialized technical assessments of independent statutory authorities.
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Supreme Court highlighted that policy directives issued under electricity legislation must align with the core objectives of promoting competition and efficiency.
  • Energy Watchdog v. CERC (2017) 14 SCC 80: Affirmed the primacy of national energy policy in guiding statutory energy regulators.
Courtroom Practice & Strategic Litigation Guidance:

When analyzing government circulars targeting the CEA, verify whether the directive constitutes a genuine 'question of policy' under Section 75; directives that micromanage specific project approvals exceed statutory authority.

Section 74 All 185 Sections of Electricity Act Section 76