"15A. (1) The Central Government or any State Government or the Central Government and one or more State Governments, or two or more State Governments1, jointly may form a Generating Company with such name as may be specified in the memorandum of association of the company.
(2) The main objects of a Generating Company shall be—
(i) establishing, operating and maintaining generating stations and tie-lines, sub-stations and main transmission lines connected therewith;
(ii) operating and maintaining such generating stations, tie-lines, sub-stations and main transmission lines as are assigned to it by the Government or Governments forming the Generating Company (hereinafter referred to as the promoting government) .
(3) The Generating Company shall carry on its activities within such areas as the promoting government or promoting governments may, from time to time, specify In this behalf.
(4) Such number of the members of the Board of directors of a Generating Company as the promoting government thinks fit or, where there are more promoting governments than one, as may be agreed upon by such promoting governments, may be appointed as full-time members thereof.
(5) A full-time member of the Board of directors of a Generating Company shall be a person who has experience of, and has shown capacity in,—
(a) design, construction, operation and maintenance of generating stations;
(b) transmission and supply of electricity;
(c) applied economics;
(d) organising workers;
(e) industrial, commercial or financial matters; or
(f) administration in a Government Department or other establishment.
Substitution of newheading for heading under Chapter IIL Insertion of new section
15A.
Formation, objects, jurisdiction, etc., of Generating Companies.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 1409
(6) The provisions of section 9 shall, so far as may be, apply to every member of the Board of directors of a Generating Company as they apply to a member of the Board.
(7) A company within the meaning of section 3 of the Companies Act, 1956, formed before the commencement of the Electricity (Supply) Amendment Ordinance, 1976, by the Central Government or any State Government or the Central Government and one or more State Governments, or two or more State Governments, jointly and functioning on such commencement, having as its main objects all or any of the matters specified in subjection (2), shall be deemed, for all purposes, to be a Generating Company under this Act.".
10. In section 16 of the principal Act,—
(1) in sub-section (2), for the words "the members of the Board", the words "the members of the Board and, if there are any Generating Company or Generating Companies operating in the State, one representative of the Generating Company or each of the Generating Companies, to be nominated by the Generating Company concerned," shall be substituted;
(2) in sub-section (5),—
(a) in clause (i) and clause (ii), for the words "the Board7', the words "the Board and the Generating Company or Generating Companies, if any, operating in the State" shall be substituted;
(b) in clause (in), for the words "the Board", the words "the Board or the Generating Company or Generating Companies, If any, operating in the State" shall be substituted.
1,1. In Chapter IV of the principal Act, in the heading, for the words "STATE ELECTHICITY BOARDS", the words "STVTE ELECTRICITY BOARDS AND GENERATING COMPANIES" shall be substituted.