(1) No provision of the Electricity Act or of the Electricity Supply Act or of 9[the Telangana Municipalities Act, 1965 (Act 6 of 1965)] or of any rule made under any of those Acts or of any instrument having effect by virtue of any of those Acts or any rule made thereunder shall have or shall be deemed to have any effect in so far as it is inconsistent with any of the provisions of this Act.
(2) Save as otherwise provided in this Act, the provisions of this Act shall be and shall always be deemed to have been in addition to, and not in derogation of the Electricity Act and the Electricity Supply Act.
23. If any difficulty arises in giving effect to the provisions of this Act, the Government may, as occasion may require, do anything which appears to them necessary for the purpose of removing the difficulty.
A copy of every order passed under this section shall be laid before the Telangana Legislature.
8. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
9. Adapted by G.O.Ms.No.142, Municipal Administration & Urban Development (F2) Department, dated 29.10.2015.
Effect of other laws.
Power to remove difficulties.
30 [Act No. XV of 1954]
24. Orders made, decisions or directions given, notifications issued, proceedings taken and acts or things done, in relation to any undertaking taken over by the Government before the commencement of this Act, if they would have been validly made, given, issued, taken or done, had the 1949 Act and the rules made thereunder been in force on the date on which the said orders, decisions or directions, notifications, proceedings, acts or things, were made, given or issued, taken or done, shall be deemed to have been validly made, given, issued, taken or done, as the case may be, except to the extent to which the said orders, decisions, directions, notifications, proceedings, acts or things are repugnant to the provisions of this Act.
10[25. [xxx]]
10. Section 25 omitted by Act No.6 of 1972.
Saving and validation.
[Act No. XV of 1954] 31
SCHEDULE I.
[See section 5 (1).]
Part A.—Applicable to a licensee not being a local authority.
1. For the purposes of section 5 (1), „net annual profit‟ shall, in respect of any account year of a licensee not being a local authority, subsequent to the date on which section 57 of the Electricity Supply Act and the Sixth Schedule thereto came into force, mean the excess of „income‟ over „expenditure‟ as defined below, less the sums referred to in paragraph 4 or, as the case may be, plus the sums referred to in paragraph 5.
2. For the purposes of the foregoing paragraph, „income‟ means income derived from—
(i) gross receipts from sale of energy, less discounts applicable thereto;
(ii) rental of meters and other apparatus hired to consumers;
(iii) sale and repair of lamps and apparatus;
(iv) rents;
(v) transfer fees;
(vi) investments, fixed and call deposits, and bank balances;
(vii) other general receipts accountable in the assessment of Indian income-tax and arising from and ancillary or incidental to the business of electricity supply.
32 [Act No. XV of 1954]
3. For the purposes of paragraph I, „expenditure‟ means the expenditure incurred on—
(i) generation and purchase of energy;
(ii) distribution and sale of energy;
(iii) rents, rates and taxes, other than all taxes on income and profits;
(iv) interest on loans;
(v) interest on security deposits;
(vi) legal charges;
(vii) bad debts;
(viii) auditors‟ fees;
(ix) management, including managing agents‟ remuneration as provided for in paragraph XIII of the sixth schedule aforesaid;
(x) depreciation, calculated on a flat rate basis as specified in Schedule II;
(xi) other expenses admissible under the law for the time being in force in the assessment of Indian Income-tax and arising from and ancillary or incidental to the business of electricity supply;
(xii) contributions to Provident Fund, staff pension, gratuity, and apprentice and other training schemes.
[Act No. XV of 1954] 33
4. The sums referred to in paragraph I as those to be deducted from the excess of „income‟ over „expenditure‟ are—
(a) the appropriations to the consumers‟ fund for purposes of distribution to consumers, where such appropriations are necessary by virtue of paragraph II (I) of the Sixth Schedule aforesaid;
(b) the contributions to the Tariffs and Dividend Control Reserve, where such contributions are necessary by virtue of paragraph II (I) aforesaid; and
(c) the taxes paid or payable, in respect of appropriations and contributions referred to in sub-clauses
(a) and (b) as taxes on income and profits.
5. The sums referred to in paragraph I as those to be added to the excess of „income‟ over „expenditure‟ are—
(a) the appropriations from the Tariffs and Dividend Control Reserve to the extent necessary by virtue of paragraph II (2) of the Sixth Schedule aforesaid; and
(b) the taxes paid or payable, in respect of the appropriations referred to in sub-clause (a) as taxes on income and profits.
6. For the purposes of section 5 (1), „net annual profit‟ in respect of any account year earlier than that referred to in paragraph I, shall mean and shall be deemed to mean the excess of income over expenditure, calculated in the manner laid down in the bulk supply agreement entered into by the licensee with the Government, or if there is no such agreement, in the prescribed manner, less the following sums:— 34 [Act No. XV of 1954]
(i) the appropriations to the consumers‟ fund in accordance with the terms of that agreement or such other sum as was accepted by the Government in lieu of such appropriations; and
(ii) the taxes paid or payable, in respect of such appropriations or sum, as taxes on income and profits.
Part B—Applicable to a licensee being a local authority.
For the purpose of section 5 (1), „„net annual profit” in respect of any account year of a licensee being a local authority shall be—
(i) if the licensee has entered into a bulk supply agreement with the Government, or the licence granted to the local authority contains any provision for the distribution of profits, the amount that should be appropriated to the general funds of the local authority out of the profits on account of the undertaking in the manner laid down in such agreement or licence; and
(ii) if there is no such agreement or provision in the licence for the distribution of profits, the amount actually appropriated to the general funds of the local authority as profits on account of the undertaking in accordance with the annual accounts.
[Act No. XV of 1954] 35
SCHEDULE II.
[See section 5 (3)].
For the purposes of payment of compensation under section 5 (3), the depreciation shall be calculated at annual rates arrived at by dividing ninety per cent of the book value of each asset by the number of years of life of the asset as specified in the table below. For the account year in which an asset was brought into beneficial use, the depreciation shall be calculated at half the annual rate and for the period after the last account year to the date of taking over, the depreciation shall be calculated pro rata.
Description of asset.
(1) Number of years or period.
(2) A. Land owned under full title … Infinite.
B. Land held under lease-
(a) for investment in the land … The period of the lease or the period remaining unexpired on the assignment of the lease.
(b) for cost of clearing the site … The period of the lease remaining unexpired at the date of clearing the site.
36 [Act No. XV of 1954] Description of asset.
(1) Number of years or period.
(2) C. Assets purchased new—
(a) Plant and Machinery in generating stations, including plant foundations—
(i) Hydro-electric … … … Thirty-five.
(ii) Steam-electric … … … Twenty-five.
(iii) Diesel-electric … … … Fifteen.
(b) Cooling towers and circulating water systems.
… … Thirty.
(c) Hydraulic works forming part of a hydro-electric system including—
(i) dams‟ spillways, weirs, canals, reinforced concrete flumes and syphons.
… … One hundred.
(ii) reinforced concrete pipe-lines and surge tanks, steel pipelines, sluice gates, steel surge tanks, hydraulic control valves, and other hydraulic works.
… … Forty.
[Act No. XV of 1954] 37 Description of asset.
(1) Number of years or period.
(2)
(d) Buildings and Civil Engineering works of a permanent character, not mentioned above—
(i) offices and show rooms … … Fifty.
(ii) containing thermoelectric generating plant.
… … Thirty.
(iii) containing hydroelectric generating plant.
… … Thirty-five.
(iv) temporary erections such as wooden structures.
... … Five.
(v) others … … … Fifty.
(e) Transformers, transformer kiosks, sub-station equipment and other fixed apparatus (including plant foundations)-
(i) Transformers including foundations) having a rating of 100 kilovolt amperes and over.
… … Thirty-five.
(ii) others … … … Twenty-five.
38 [Act No. XV of 1954] Description of asset.
(1) Number of years or period.
(2)
(f) Switchgear, including cable connections … … Twenty.
(g) Batteries … … … Ten.
(h) (i) Underground cables, including joint boxes and disconnecting boxes.
… … Forty.
(ii) Cable duct system … … Sixty.
(i) Overhead lines, including supports-
(i) lines on steel or reinforced concrete supports operating at nominal voltages higher than 13.2 kilovolts.
… … Thirty.
(ii) other lines on steel or reinforced concrete supports.
… … Twenty-five.
(iii) lines on wood supports … … Twenty.
(j) Meters … … … Fifteen.
(k) Self-propelled vehicles … … Seven.
(l) Static machine tools … … Twenty.
(m) Air conditioning plant- [Act No. XV of 1954] 39 Description of asset.
(1) Number of years or period.
(2)
(i) Static … … … Fifteen.
(ii) Portable … … … Seven.
(n) (i) Office furniture and fittings … … Twenty.
(ii) Office equipment … … Ten.
(o) Apparatus let on hire-
(i) other than motors … … Seven.
(ii) motors. … … Twenty.
(D) Assets purchased second-hand and assets not otherwise provided for in this table.
Such reasonable period as the Government determine in each case having regard to the nature, age and condition of the asset on the vesting date.
* * * E:\Uploading PDF Documents\Uploading word 1951-1960\1954 - (4)\XV of 1954 The Telangana [Electricity Supply Undertakings (Acquisition) Act, 1954\Index.docx E:\Uploading PDF Documents\Uploading word 1951-1960\1954 - (4)\XV of 1954 The Telangana [Electricity Supply Undertakings (Acquisition) Act, 1954\Act 15 of 1954.docx