Notwithstanding anything in this Act, the State Government may, by order in writing, and subject to such conditions and restrictions, if any, as it thinks fit to impose, authorise any licensee to supply energy to any person outside the area of supply, and to lay down or place electric supply-lilies for that purpose:
Provided, first, that no such authority shall be conferred on the licensee within the area of supply of another licensee without that licensee’s consent, unless the State Government considers that his consent has been unreasonably withheld:
Provided, secondly, that such authority shall not be conferred unless the person to whom the supply is to be given has entered into a specific agreement with the licensee for the taking of such supply:
Provided, thridly, that a licensee on whom such authority has been conferred shall not be deemed to be empowered outside the area of supply to open or break up any street, or may sewer, drain or tunnel iii or under any street, railway or tramway: or to interfere with any telegraph- Line, without the written consent of the local authority or person by whom such street, sewer, drain or tunnel is repairable, or of the telegraph authority, as the case may be, unless the State Government after such inquiry as it thinks fit, considers that such consent has been unreasonably withheld.
Provided, fourthly, that save as aforesaid, the provisions of this Act shall apply in the case of any supply authorised under this Section as if the said supply were made within the area of supply.
PART III SUPPLY, TRANSMISSION AND USE OF ENERGY BY NON-LICENSEES
28. Sanction required by non-licensees in certain cases.
(1) No person, other than a licensee, shall engage in the business of supplying energy to the public except with the previous sanction of the State Government and in accordance with such conditions as the State Government may fix in this behalf, and any agreement to the contrary shall be void.
(1A) The State Government shall not give any sanction under subsection (1)-
(a) Except after consulting the State Electricity Board; and
(b) Except with the consent-
(i) In any case where energy is to be supplied in any area for which a local authority is constituted, of that local authority;
(ii) In any case where energy is to be supplied in any area forming part of any cantonment, aerodrome, fortress.
arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, of the Central Government;
(iii) In any area falling within the area of supply of a licensee, of that licensee:
Provided that except in a case falling under sub-clause (ii), no such consent shall be necessary if the State Government is satisfied that such consent has been unreasonably withheld.
(2) Where any difference or dispute arises as to whether any person is or is not engaging, or about to engage, in the business of supplying energy to the public within the meaning of subsection (I ), the matter shall be referred to the State Government, and the decision of the State Government thereon shall be final.