Home  /  Electricity Act  /  Section 98

Section 98: Grants and loans by Central Government

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 97 All 185 Sections of Electricity Act Section 99

Legal Commentary & Landmark Judgments: Section 98

Section 98 of the Act authorizes the Central Government to make grants and loans to the Central Commission to defray statutory operational expenditures and capital investments.

  • Central Budgetary Financial Support: Authorizes parliamentary budgetary appropriations to finance the establishment, research, and regulatory infrastructure of the CERC.
  • Sovereign Parliamentary Scrutiny: Requires that all grants and loans made under this section must be sanctioned by Parliament after due appropriation by law.
  • Preservation of Fiscal Independence: Ensures the Central Commission maintains financial resources independent of regulated utility fee dependencies.
Key Landmark Precedents:
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Supreme Court recognized that secure statutory funding under Section 98 is essential to maintain regulatory independence from executive pressure.
  • State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Affirmed that financial self-sufficiency is a vital attribute of independent regulatory adjudicators.
  • Energy Watchdog v. CERC (2017) 14 SCC 80: Affirmed the sovereign public backing supporting the regulatory framework.
Courtroom Practice & Strategic Litigation Guidance:

In regulatory proceedings involving complex nationwide market design studies, parties can petition the Commission to utilize Section 98 research funds to engage independent technical modeling institutions.

Section 97 All 185 Sections of Electricity Act Section 99