(1) It shall be the duty of the holder of a supply license or a transmission license in respect of a particular area to develop, provide and maintain an efficient, coordinated and economical system of electricity supply or transmission in the area of supply, as the case may be.
(2) Each licensee in discharge of its duties shall comply with the provisions of the regulations framed from time to time governing the terms and conditions for the operation and maintenance of power system and electric supply lines.
(3) Subject to sub-section (4), sections 12 to 19 of the Indian Electricity Act, 1910 (which relate to the carrying out of Works) shall have effect in relation to a person authorised by a license under this Act to transmit or supply electricity, as if he is a licensee in that Act.
(4) Where any of the sections mentioned in sub-section (3) above is applied to a license holder by his license, it shall have effect subject to such restrictions, exceptions and conditions as may be included in the license.