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Cesu Scheme

Date : 13.10.2006

In exercise of power u/s 22 of the Electricity Act,2003, the Commission vide its order dated 08.09.2006 has approved the Central Electricity Supply Utility of Orissa (Operation and Management) Scheme, 2006. Under the said Scheme the Commission has also constituted a Management Board and the said Board has conducted its first meeting on 20.09.2006, as directed by the Commission. The minutes of the said first Board Meeting was communicated to the Commission by the CESU vide its letter dated 23.09.2006.

In the said letter the Members of the Management Board furnished some suggestions and requested the Commission to issue certain clarifications with regard to some of the provisions of the Scheme. One of the such suggestion is the vesting of the Utility in the CESU and not with the Management Board. The Commission carefully considered the valuable suggestions furnished by the Members and deliberated on the matter. In this regard, the Commission have also consulted and have discussion with the Chairman and Members of the Management Board of CESU. After due deliberation, the Commission considered and accepted some suggestions and has made certain modifications to some of the provisions of the Scheme. The CESU shall be an artificial juridical person as per Section 2(49) of the Electricity Act, 2003 vested with the Utility of former licensee CESCO to carry out its licensed activity. By this order, the Commission amends the provisions with regard to vesting of the Utility with the CESU’s Management Board. The Commission has also considered to increase the number of the Board Members from eight to nine to include CMD, GRIDCO or CMD, OPTCL as an Ex-Officio Member of the Board. Sri U.P.Singh, IAS, present CMD, GRIDCO is hereby nominated to be a Member of the Board. Accordingly necessary notification may be issued in this regard. Some other modifications as deemed necessary have also been carried out in the Scheme. The Commission hereby approves the modified version of the Scheme.

The Commission also considered certain clarifications raised by the Members of the Board and the clarification raised by the CEO(F&C) vide his letter dated 09.10.2006. All these issues can be resolved by the Board as per the provisions of the existing laws and in consultation with legal and tax experts.

Secretary may furnish copy of this order and also a copy of the modified version of the Scheme to Chairman and all Members of the Management Board, CESU, Secretary, Dept. of Energy, Govt. of Orissa, CMD, GRIDCO/MD, OPTCL for information and necessary action.

The copy of this order and the modified version of the Scheme may also be posted in the Commission’s website for the information of the general public.

Member (SK)


Scheme Download

Amendment Order on CESU Scheme