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.